A former N.L. Hydro VP is now in charge at the PUB. This critic is not impressed

A former senior Newfoundland and Labrador Hydro executive is now in charge of the board that regulates electric utilities in the province. And while the board says special measures are being taken to ensure Kevin Fagan doesn't bring any bias to the job, a longtime critic of the Muskrat Falls hydroelectric project is raising concerns about the appointment.

Ron Penney called Fagan's seven-year appointment as chairperson of the Board of Commissioners of Public Utilities "unfortunate" because of Fagan's long and prominent history with N.L. Hydro, the Crown-owned utility that is regulated by the board.

Penney said he isn't questioning Fagan's competency, but said he brings a "very big conflict of interest" to his new job.

But provincial officials and the consumer advocate are praising Fagan's appointment, saying he was recommended by the Independent Appointments Commission, which includes a conflict of interest disclosure.

And the PUB's executive director, Cheryl Blundon, said a series of measures are in place to ensure Fagan is not in a conflict of interest.

For example, Fagan will not be involved in any utility applications filed with the board prior to his July appointment, or N.L. Hydro applications filed within six months of his appointment. At the end of the six-month period, each Hydro application will be assessed case by case to determine if Fagan should recuse himself.

Newfoundland Power applications filed subsequent to Fagan's appointment will also be assessed case by case to determine if the new chair should not be involved.

In a statement to CBC News, Justice and Public Safety spokesman Jeremy Reynolds wrote, "[Fagan's] extensive background will help to strengthen the oversight and governance of the PUB." 

Consumer advocate Dennis Browne supports Fagan's appointment, saying he brings a much-needed expertise to the board.

Browne would not do a recorded interview but emailed the following statement:

"Kevin Fagan brings to the PUB what has been lacking — a commissioner with decades of experience in working in the electricity industry and [who] has complete knowledge of this province's electricity system and infrastructure. We can only benefit from this level of expertise, especially given the challenges of this particular time."

Next year, N.L. Hydro is expected to bring an application before the board in relation to power rates in the Muskrat Falls era. Penney said Fagan will be "in the thick of it," and he's concerned about that because Fagan is so closely linked to Hydro and the Muskrat Falls project.

"At a very critical time in the history of the board, where you really need independent analysis, we have somebody who cannot be independent and cannot, I don't think, cannot participate in this hearing," said Penney.

The federal and provincial governments have been working with N.L. Hydro in recent years to devise a plan to keep rates affordable when customers start paying for a project that is billions over budget and years behind schedule.