Daily Report November 13, 2019 Today in BC

BC Today – Daily Report November 13, 2019 Quotation of the day “Clearly, there’s something wrong with the gas market in British Columbia, and we want to get to the bottom of that.” Premier John Horgan says he plans to “reinforce” Ottawa’s role in resolving the issue of B.C.’s high gas prices with Prime Minister Justin Trudeau. Today in B.C. On the schedule The house is adjourned until Monday, November 18. Fuel companies provide ‘inconclusive or conflicting’ explanations for B.C.’s gas price gap, fail to sway utilities commission In its supplementary report released yesterday, the B.C. Utilities Commission (BCUC) found fuel companies’ attempts to explain the comparatively high cost of gas in B.C. unconvincing. In its original August report, the BCUC determined wholesale gasoline costs in the province are about 13 cents per litre higher than other jurisdictions — a “significant unexplained difference” that is costing B.C. drivers $490 million per year. During follow-up consultations, fuel companies — including Parkland Fuel Corporation, Imperial Oil Limited and Suncor Energy — suggested land and transportation costs, and federal and provincial fuel standards, affect prices and could account for nearly eight cents of the price differential. The BCUC found those arguments unconvincing. “The evidence is either inconclusive or conflicting, making it impossible to determine an appropriate quantum for an adjustment, if any,” the report concludes. “As such, the panel’s best estimate is that the unexplained difference could potentially range from 10 [cents per litre] to the originally reported 13 [cents per litre].” A case of ‘the tail wagging the dog’ Despite the fact that B.C. only imports five per cent of its gasoline from the Pacific Northwest (PNW) market, the commission found that PNW prices are the primary driver of the province’s high gas prices, which are most acute in the Lower Mainland. “The cost of the most expensive 5% of the supply is driving the price of all of the gasoline sold,” according to the report. “The implication of this is in those instances where the price of Alberta crude is low, it has limited or no effect on the Vancouver wholesale price.” Fuel companies sourcing their product from markets other than the PNW still charge PNW prices, partly due to a lack of competition in the provincial industry. “There is an oligopoly that is exercising market power at the wholesale level,” the report notes. While there may be “unintended consequences” to taking regulator action — such as disincentivizing investment — the commission subtly suggests that such a step might be worth it in B.C.’s particular case. “The existing members of the oligopoly have an incentive to invest because the returns are high,” it concludes. “Those returns are realized through higher prices for customers than they would pay in the absence of an oligopoly exercising market power.” In a news conference yesterday, Premier John Horgan said the government is already at work on legislation; the Vancouver Sun previously reported the province is putting together a bill that would compel fuel companies to disclose confidential data related to pricing and supply. Horgan said the legislation will be introduced “in the coming weeks” — there are just two left in the fall sitting. The premier also plans to bring B.C.’s gas price woes up with Prime Minister Justin Trudeau since “the federal government has an ability to look at competition within markets.” The premier suggested the way pipeline capacity is currently allotted doesn’t help B.C.’s fuel market. “It’s not just about supply, although we need more gasoline,” he told reporters. “We need less diluted bitumen. That won’t move your automobile, but gasoline will.” Liberal reaction Liberal Party Leader Andrew Wilkinson hearkened back to Horgan’s spring suggestion that the government might take action to “provide relief” to the driving public — at the time, prices at some Lower Mainland pumps were over $1.60 per litre. “Today we have another example of John Horgan doing nothing at all to help consumers,” Wilkinson said in a statement. “We still have some of the highest gas prices and gas taxes in North America. John Horgan said he had a ‘range of options’ to deal with gas prices but all we get is excuses.” The Opposition leader also took the opportunity to criticize the premier’s lack of action on multiple strikes going on in the province. “[He] has done nothing about the transit strike, nothing about a school strike now in its third week, and now he is going to do nothing about sky-high gas prices — he really is ‘Do Nothing John.’” Today’s events November 13 at 9:15 a.m. — Quesnel Parliamentary secretary for Forests, Lands, Natural Resource Operations and Rural Development Ravi Kahlon will announce a new apportionment decision for the allowable annual cut for the Quesnel Timber Supply Area. Kahlon will be joined by Quesnel Mayor Bob Simpson, representatives from the Southern Dakelh Nation Alliance and ?Esdilagh First Nation, and a representative from C&C Wood Products Ltd. at the Quesnel Forestry Innovation Centre. November 13 at 10 a.m. — Surrey Attorney General David Eby will be at Sources Community Resources Society to announce a new legal clinic opening in Surrey. November 13 at 11 a.m. — Burnaby Education Minister Rob Fleming will be joined by Minister of State for Child Care Katrina Chen, and local NDP MLAs Anne Kang and Raj Chouhan at Second Street Community School for an official opening ceremony for three new playgrounds in Burnaby. Fleming will also open new parks in Richmond later in the day. November 13 at 1 p.m. — Prince George Parliamentary secretary Ravi Kahlon will be joined by representatives from the Forest Enhancement Society of B.C. at the Pacific BioEnergy plant to announce funding for wood fibre utilization projects throughout the province. November 13 at 1:30 p.m. — Tokyo Forests Minister Doug Donaldson will host a conference call to provide an update on the province’s forestry trade mission underway in Japan. November 13 at 3 p.m. — Langford Premier John Horgan and parliamentary secretary for Gender Equity Mitzi Dean will make an announcement at the Westhills Building that benefits BC Public Service employees who live in the West Shore. November 13 at 6 p.m. — Penticton Social Development and Poverty Reduction Minister Shane Simpson will attend a community meeting to discuss the development of accessibility legislation at the Ooknakane Friendship Centre. November 13 at 6 p.m. — Kamloops The NDP’s Kamloops—North Thompson riding association will host parliamentary secretary Ravi Kahlon at a pub night at the Tumbleweed Lounge at the Plaza Hotel. November 13 at 6 p.m. — Prince Rupert NDP MLA Jen Rice, parliamentary secretary for Emergency Preparedness, and the party’s North Coast riding association will host Mental Health and Addictions Minister Judy Darcy for a pub night at Wheelhouse Brewery. November 13 at 7 p.m. — Vancouver Green Party MLAs Sonia Furstenau and Adam Olsen will attend a “Green Wave Celebration” at VanDusen Gardens along with “Greens from all levels of government.” Topics of conversation ● Conservative Party of Canada Leader Andrew Scheer met with Prime Minister Justin Trudeau for the first time since the October 21 election Tuesday. Scheer released a seven-point list of items he wants to see in Trudeau’s throne speech, scheduled for early December. ○ The wish list includes increasing national unity by opening up “opportunities for Western Canadian oil and gas,” completing the Trans Mountain expansion and repealing Bills C-48 and C-69. Absent is the demand to axe the carbon tax. ● Talks between Coast Mountain Bus Company and Unifor, the union representing Lower Mainland transit workers, are set to resume today after more than a week of strike action. If no deal is reached by Friday, the union is planning to escalate its strike action, which could affect up to 15 per cent of bus services across the Lower Mainland. ● Canada’s information and privacy ombudspersons and commissioners are calling on governments to modernize access to information and privacy laws. “Most Canadian access and privacy laws have not been fundamentally changed since their passage, some more than 35 years ago,” reads a joint resolution from the federal, provincial and territorial information and privacy watchdogs. “They have sadly fallen behind the laws of many other countries in the level of privacy protection provided to citizens.” The commissioners and ombudspersons met in Charlottetown, P.E.I., at the beginning of October and outlined measures needed to modernize access to information and privacy protection laws, as well as enforcement measures. ○ In his own statement, B.C. Information and Privacy Commissioner Michael McEvoy reminded the NDP government that it made modernizing the province’s information and privacy laws a campaign promise in 2017. “Now is the time to make these necessary changes that will serve the public interest,” he said. ○ McEvoy highlighted the need for “a legislative framework to ensure the responsible development and use of artificial intelligence and machine learning technologies,” increased enforcement powers and applying access to information legislation to “to all information held by public entities, regardless of format.” ○ In May — in reaction

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