Another great presentation to the IRAC review panel.
IRAC urgently needs an overhaul
(Charlottetown)11 Jul 2026MARK LEDWELL Mark Ledwell is retired from practising international law. He lives in Stratford.
Last week, l presented to the IRAC independent review commission in Brudenell. Here is a summary of my submission:
We have approximately 100 agencies and tribunals in P.E.l. None impact the day-to-day lives of lslanders more than IRAC. IRAC is P.E.I.’s “super” administrative agency.
After 35 years, IRAC has lost its way. A significant overhaul of the agency is urgently required. The complexity of matters regulated by IRAC (electricity, fuel, lands protection, planning, residential rent) has increased, as have tensions between consumers and providers of those essential goods and services.
As a candidate to lead one of P.E.I.’s political parties, I spoke with hundreds of lslanders, from all walks of life, about their concerns. No one I met was satisfied with IRAC. What I heard is that IRAC has generally lost the confidence of lslanders; it is not considered to be independent, efficient, transparent and fair. ln my view, it would be a mistake to dismiss these concerns.
I would like to raise five areas of concern:
1. IRAC’S LACK OF INDEPENDENCE
The decision-makers at IRAC, the CEO and commissioners, are appointed by the government of the day. ln practice, appointments to IRAC are provided to political friends. This system of patronage undermines IRAC’s independence, leads to understandable apprehensions of bias, and harms IRAC’s reputation as a tribunal and decision maker.
Last month, government appointed a new P.E.I. provincial court judge. The successful candidate underwent a rigorous screening and evaluation process. All applications were evaluated by an independent committee using published criteria. The question must be asked: why is this level of scrutiny not used in selecting IRAC’s executive team and commissioners?
I suggest a reset of the current appointment process. Seek applications from interested Islanders, including those currently holding positions. Develop criteria for the positions. lnterview and vet candidates. This will go a long way in establishing a truly independent, professional agency.
2. SEPARATE AGENCY TO ADDRESS LAND MATTERS
IRAC’s long-standing problems with transparency have been most evident in land matters.
IRAC’s failure to release the Brendel Farms investigation report (2010) and delay in disclosing that it did not complete a report into land holdings related to the contentious Bliss and Wisdom Monastic Corporation (2025) have highlighted questions about IRAC’s independence and raised concerns about a “behind the curtain” relationship between the P.E.I. Premier’s Office and IRAC.
This is no way to operate a tribunal, especially a tribunal as important to Islanders as IRAC. And, because IRAC is a centralized, omnibus-style commission, any failure to fulfil its mandate in land matters indirectly affects all other matters it adjudicates.
The most effective administrative agencies in Canada have a clear purpose, are efficient, and have specialized knowledge in the field they are adjudicating. A separate land use commission with independent members and a clear legislative purpose, including a provincial land use policy, is long overdue.
3. PLANNING APPEALS FRUSTRATE DEVELOPMENT
Appeals of planning decisions should go to the Supreme Court of P.E.I., not IRAC.
We have a bench of six judges in the Supreme Court and four in the
Court of Appeal. We have clear law from the Supreme Court of Canada about standards for review of administrative decisions. P.E.I. courts are qualified, well staffed and capable of reviewing planning decisions of municipal governments and provincial planning officials.
Judges are free from conflicts of interest and are independent.
Having yet another tribunal, IRAC, adds red tape, time, cost and a needless layer to planning decisions in P.E.I. We should strive to be more efficient. Islanders before IRAC are frustrated by delay, costs, perceived conflicts of interest and by IRAC’s ability and willingness to consider “new” evidence on appeal.
Instead of a review limited to questions of legal errors and procedural fairness, parties are often forced into a whole new hearing. This involves a rehash of the facts and second-guessing of decisions made by municipal governments and planning officials acting on the front lines.
IRAC has moved away from its original function – an appellate tribunal in planning matters – to a fact finder and central planning authority. The process undermines local government. We don’t need it and we cannot afford it.
4. LOOKING AFTER THE PUBLIC INTEREST
IRAC regulates all aspects of Island electricity and fuel prices. According to IRAC, in carrying out its mandate in electricity matters, it must balance the interests of Maritime Electric.
IRAC must ensure that Island electricity rates are high enough to allow Maritime Electric to achieve its legislated profit for its shareholders, while at the same time protect Island ratepayers. IRAC is vested with authority to approve Maritime Electric’s costs and determine whether they are reasonable and justified.
But who is advocating for Island ratepayers and protecting their interests in our electricity grid and pricing system? It is not IRAC.
There must be a standing, publicly funded, public interest intervener in electricity and fuel pricing matters before IRAC. A public intervener should have been put in place long ago.
In matters before IRAC, Maritime Electric is well represented. The utility is part of Fortis, a $42-billion company – more than four times the size of the P.E.I. economy. It is a David and Goliath situation.
Maritime Electric has the resources and deep pockets to hire lawyers, consultants and experts to advocate on its behalf. IRAC’s electricity docket is a steady stream of Maritime Electric rate applications and adjustments. But there is no one, no party, to advocate for Islanders.
To make matters worse, IRAC has decided to limit public interveners by an overly rigid application, an “aggrieved person” test. Records reveal several instances where Maritime Electric has opposed granting “party” status to local groups such as Energy Democracy Now! IRAC has agreed, leaving Island ratepayers with little opportunity to be heard. This must change.
5. IRAC IS OVERLY BUREAUCRATIC
IRAC has a “super-agency” status in P.E.l. To do its work, IRAC imposes rules and time limits on parties and interested persons who appear before it. Yet IRAC imposes no time limits on itself. This leads to a long list of pending rate application decisions, planning appeal decisions, investigations, and delayed decision making.
ln a recent case, the carrying cost (interest) of Maritime Electric’s approved expenses in connection with Fiona storm damage was approximately $6 million. These costs are passed on to lslanders. A timely decision would have significantly lowered the interest charge.
lncreasingly, IRAC is reaching out to outside experts. We saw this in the Fiona storm expense claims from Maritime Electric; we are seeing it now in IRAC’s second Bliss and Wisdom land holding investigation, and in the current fuel pricing review. This adds delay and cost to decision-making. lt also speaks to lRAC’s lack of expertise as a Jack-ofall-trades tribunal.
The time has come to rein in IRAC, to redefine its role and purpose, and to give it an opportunity to be an agency lslanders trust and respect.
