Government to take immediate action to dismantle IRAC and build new regulatory bodies with more transparency, and more accountability for Islanders

Following the release Friday of the Interim Report of the Independent Review of the Island Regulatory and Appeals Commission, Premier Rob Lantz announced today that government is moving immediately to begin dismantling IRAC’s single, 35-year-old structure and replacing it with two focused specialized bodies: the PEI Energy and Utilities Board and the PEI Land and Appeals Board, both will be supported by a shared administrative tribunal. 

"IRAC was created in 1991 to bring three separate bodies under one roof. Thirty-five years later, that same organization is being asked to set electricity rates, protect farmland, hear tenant disputes and decide planning appeals, all at once. That model is no longer working for Prince Edward Island and change is needed. The Commission, led by Rory Francis, has given Islanders a clear, evidence-based roadmap for what comes next. We are not going to wait for the final report on November 1st to start doing our part of the work."

-Premier Rob Lantz

Work on all recommendations directed at the government will begin immediately while the report is being finalized, with immediate focus on: 

  • Bringing forward legislation that will be debated this Fall to dismantle IRAC and establish the PEI Energy and Utilities Board and the PEI Land and Appeals Board as independent, specialized decision-making bodies.  These bodies will be more transparent and make decisions faster.
  • Standing up a Transition Team, to plan the move to the new structure while ensuring no active appeal, application, license or rate proceeding is delayed, restarted, or disadvantaged.
  • Separating of the Residential Tenancy Office from IRAC, giving it its own office and budget. 
  • Establish a modern, merit-based Commissioner appointment process that includes defined terms, an external and independent recruitment committee, and mandatory performance reviews of all commissioners.
  • Having IRAC move immediately on the Commission’s recommendation for an interim electricity-adequacy plan.
  • Establishing a Consumer Advocate/Intervenor to ensure that ratepayers and Islanders are sufficiently represented before the regulators.
  • Formalizing a communications protocol with IRAC that will transfer to the new regulatory bodies so that the legislative and systemic problems it identifies through its daily work reach government directly and transparently. 
  • Reviewing outdated policies and practices that no longer serve their purpose and cutting unnecessary bureaucracy and ambiguity out of the regulatory process.

Government will be releasing progress reports on the recommendations of the Independent Review regularly and will be legislating a requirement for an independent external review of the new proposed entities every six years going forward.   

"This is an interim report, and we respect that the Review still has work to do before the final report is made available. But our government is not waiting on the final report to start the work that needs to be done. Where a recommendation is ours to act on, it doesn't need a final report to be published, and Islanders don't need to wait any longer for a regulatory and appeals system that is more transparent, more focused, and more accountable to the people they are intended to serve."

- Premier Rob Lantz

Islanders can provide feedback on the interim report until October 2. The commission will consider that input before submitting its final report on November 1.

To read the interim report, or provide feedback visit, here. 

 

Media contact:
Nicole Yeba
Executive Council Office
ntyeba@gov.pe.ca

 

Background: 

  • The Independent Review was established in May 2026 under the Public Inquiries Act and operates at arm's length from both government and IRAC.
  • The Interim Report, released by Commissioner Francis on September 18, 2026, is the first independent, arm's-length examination of IRAC since it was created in 1991. It draws on public hearings in five communities, 20 public presentations, 63 written submissions, and more than 40 meetings with community groups, municipalities, industry and IRAC itself. 
  • The Interim Report contains approximately 65 recommendations: 35 directed to the provincial government, 17 to IRAC or its successor organizations, and 13 to other bodies, including the Residential Tenancy Office.
  • IRAC currently administers 29 provincial statutes.
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