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1 GETTING STARTED AT YOUR PUBLIC UTILITY COMMISSION Theo MacGregor Jerrold Oppenheim Democracy And Regulation Presented at the National Community Action Foundation Conference November 14, 2007 St. Petersburg, Florida
2 ...CANBE.. SCARY!.
3 ADVOCACY BEFORE THE PROCESS STATE REGULATORY COMMISSIONS REGULATORY PRINCIPLES HOW ADVOCATES CAN PARTICIPATE WHAT REGULATORS NEED FROM YOU AND WHEN BECOME ESSENTIAL HOW TO COUNTER ARGUMENTS ARKANSAS: A CASE STUDY
4 THE PROCESS PUBLIC FILING BY UTILITY RATE CASE FUEL OR POWER COST ADJUSTMENT CASE MERGER/ACQUISITION INTEGRATED RESOURCE PLAN PERFORMANCE-BASED RATEMAKING (SOMETIMES PETITION FILED BY ADVOCATES) PUBLIC NOTICE INTERVENTION PUBLIC HEARINGS IN SERVICE TERRITORY PROCEDURAL MEETING TO SET SCHEDULE
5 THE PROCESS cont. DISCOVERY: FORMAL WRITTEN QUESTIONS TO UTILITY BY ALL PARTIES INDEPENDENT RESEARCH NEGOTIATION COALITION FORMING FOLLOW-UP DISCOVERY ANSWERS SUPPLIED TO PUC AND ALL PARTIES BY UTILITY FILINGS BY PARTIES (TESTIMONY, ALTERNATIVE PROPOSALS)
6 THE PROCESS cont. DISCOVERY ON PARTIES FILINGS BY ALL ANSWERS BY PARTIES TO PUC, UTILITY AND OTHERS PUBLIC HEARINGS FOR CROSS- EXAMINATION ON TESTIMONY AND DISCOVERY RESPONSES WRITTEN BRIEFS AND REPLY BRIEFS SUMMARIZING POSITIONS IN SOME STATES, DRAFT DECISION BASED ON RECORD
7 THE PROCESS cont. MORE BRIEFS OR COMMENTS ON DRAFT SOMETIMES, ORAL ARGUMENTS ON DRAFT DECISION COMMISSION DECISION, OR ORDER MOTIONS O TO CLARIFY OR RECONSIDER FILING BY UTILITY TO COMPLY WITH ORDER APPEAL (IF ANY)
8 BALANCING INTERESTS t /i / l ti
9 ESSENTIAL PRINCIPLES OF RATEMAKING 1) DUE PROCESS: RIGHTS OF TRANSPARENCY AND PARTICIPATION 2) PRICES MUST BE JUST AND REASONABLE 3) UTILITY INVESTMENTS MUST NOT BE ARBITRARILY CONFISCATED 4) CONFLICTING INTERESTS MUST BE BALANCED 5) PRICES MUST BE RELATED TO COSTS
10 HOW ADVOCATES CAN PARTICIPATE BECOME INFORMED ABOUT THE PROCESS ABOUT THE COMMISSION ABOUT THE ISSUES THAT AFFECT YOUR CONSTITUENCY MEET AND DEVELOP RELATIONSHIPS WITH THE UTILITY PEOPLE WHO AFFECT YOUR CLIENTS COMMUNITY RELATIONS CREDIT AND COLLECTIONS
11 HOW ADVOCATES CAN PARTICIPATE cont. DEVELOP RELATIONSHIPS WITH PUC COMMISSIONERS AND STAFF DIVISION DIRECTORS CONSUMER STAFF LEGAL STAFF/HEARING OFFICERS/ALJs GET ON NOTIFICATION LIST ASK TO BE NOTIFIED BY STAFF
12 HOW ADVOCATES CAN PARTICIPATE cont. FIND OUT IF THERE IS FUNDING AVAILABLE DEMOCRACY AND JUSTICE REQUIRE RESOURCES BE READY TO INTERVENE ANYTIME A UTILITY PETITIONS FOR ANYTHING AND INTERVENE! USE LEVERAGE IF NOT FORMAL CASE, BE PREPARED TO PARTICIPATE IN TECHNICAL OR INFORMAL PROCEEDINGS
13 HOW ADVOCATES CAN PARTICIPATE cont. FORM COALITIONS WITH LIKELY (AND UNLIKELY) PARTNERS ASK FOR FUNDING IF IT IS AVAILABLE MARSHAL YOUR CLIENTS AS WITNESSES IN PUBLIC HEARINGS CALL THE PRESS GIVE INTERVIEWS BE THERE! ALL THE TIME EVERY TIME
14 LEVERAGE RESOURCES ohfour.files.wordpress.com/2007 fil 2007/08 08/newspapers.jpg
15 WHAT REGULATORS NEED FROM YOU AND WHEN PETITION TO INTERVENE AT OUTSET DESCRIBE INTEREST IN CASE SHOW THAT YOU REPRESENT UNIQUE GROUP NOT OTHERWISE REPRESENTED BY CONSUMER ADVOCATE OUTLINE POSITION YOU WILL TAKE IN CASE
16 WHAT REGULATORS NEED FROM YOU AND WHEN cont. ATTEND PUBLIC HEARINGS IN FORCE WITH CLIENT STORIES PARTICIPATE IN PROCEDURAL CONFERENCE TO SET SCHEDULE IF GRANTED STATUS, ISSUE DISCOVERY TO UTILITY FORM COALITIONS BEGIN NEGOTIATIONS SUBMIT TESTIMONY AND EXHIBITS SUPPORTING YOUR POSITION
17 WHAT REGULATORS NEED FROM YOU AND WHEN cont. CROSS EXAMINE UTILITY WITNESSES BE CROSS EXAMINED SUBMIT BRIEFS AND REPLY BRIEFS AWAIT COMMISSION ORDER START AGAIN
18 BECOME ESSENTIAL TO YOUR EXPERTISE THE COMMISSION RESEARCH FINDINGS DATA ON LOW-INCOME UTILITY CUSTOMERS INCOME LEVELS HOW MANY POOR PEOPLE? HOW POOR? LEVELS OF ARREARAGES NUMBER OF DISCONNECTIONS
19 BECOME ESSENTIAL TO THE COMMISSION NUMBER NEEDING WEATHERIZATION, ENERGY EFFICIENCY DEVELOP A RECORD BASED ON EVIDENCE POLITICAL COVER FOR WHAT THEY WANT TO DO SETTLEMENTS BETWEEN YOU AND THE UTILITY, YOU AND OTHERS BECOME ESSENTIAL TO THE COMMISSION!
20 WHAT YOU CAN WIN nseling%20session blogs.timesunion.com/homerestoration/wp-conteconte
21 WHAT YOU CAN WIN AFFORDABILITY PROGRAMS DISCOUNTS PIPPs ARREARAGE MANAGEMENT WITH BUDGET COUNSELING CONSUMER PROTECTIONS WINTER OR SUMMER MORATORIA
22 WHAT YOU CAN WIN LOW OR NO DEPOSITS, LATE FEES, OR RECONECT FEES INSTALLMENT BILLING REQUIREMENTS EFFICIENCY AND WEATHERIZATION PROGRAMS ENERGY USE EDUCATION PROGRAMS BE PATIENT, BUT BE PERSISTENT!
23 HOW TO COUNTER ARGUMENTS f t it /ti /6/ /pics/1-argument.jpg /1 tj
24 HOW TO COUNTER ARGUMENTS Q: Why should some customers subsidize others? A. Every sector pays in every sector gets back what they put in there is no subsidy. Saves all ratepayers money in reduced energy prices, reduced arrearage costs because it is easier to pay bills so small ratepayer e investment reaps dividends. idends
25 Besides... Ensuring everyone has access to affordable utility service benefits all ratepayers and society. Prevent ent homelessness Better health Ability to work Uninterrupted education Lower utility bad debt, all rates
26 ARGUMENTS Q: Why weatherize low-income homes; isn't C&I efficiency i more cost-effective? ti A: Using a societal cost-effectiveness test, LI Wx and EE are equally or more cost- effective esp. if piggybacked onto DOE WAP.
27 ARGUMENTS Q: What about TOU meters? Aren't they better than Wx and EE to lower usage? A: Low-income families already use ~15% less electricity not much left to cut down without hurting families unless invest in efficient equipment.
28 ARGUMENTS Q: Why not do a little in lots of homes, instead of a lot in one? A: Comprehensive treatment actually makes a difference in ability to pay bills. Also prevents lost opportunities and need to return.
29 ARKANSAS IN JULY / b/i / t t tli ht/ li t / k l if
30 ARKANSAS: A CASE STUDY THE CONTEXT Large low-income and working poor population No social ratemaking allowed Large business customers opposed (except Wal-Mart) No electric restructuring / lots of co-ops ops 1977 Law allowed utilities to offer energy efficiency as a regulated service
31 ARKANSAS cont. BACKGROUND We give presentations about low-income programs at NARUC meetings PUC Chair looks for help for low-income Arkansans after natural gas price spikes Entergy and AWG ready to go but need help ACAAA organizes state-wide energy forums, used media, pressured legislature
32 ARKANSAS cont. REGULATORY PROCESS PUC Chair forms EE Collaborative with skilled facilitator Collaborative meets every other week for 3 months ACAAA (and we) lead small group toward consensus on weatherization program, with Entergy and AWG as lead utilities
33 ARKANSAS cont. RESULTS Weatherization program for severely energy- inefficient homes developed through consensus Supported by all parties except large businesses Piggybacked onto DOE WAP; implemented by CAPs and other WAP providers Program approved by PUC with funding for on- going collaboration, best practices Bullet-proof order -- No appeal by businesses
34 ARKANSAS cont. LESSONS LEARNED Recruit supporters where you can find them Involve all key constituencies: i Political Regulatory and legislative Utilities Consumer and low-income advocates Something for everyone Find strong leaders willing to work
35 ARKANSAS cont. MORE LESSONS LEARNED Understand/teach d/ that efficiency, i social welfare and economics are compatible Flexibility and creativity are key (e.g., target severely energy-inefficient rather than low-income homes) Be prepared for lots of meetings, conference calls, constant communication
36 Free copies from: Kay Kelley Arnold, Sr. V.P., External Affairs Entergy Corp. P.O. Box 3797 Little Rock, ARK 72203
37 Conference Price $20 Available from the authors here. Or order for $25 at www. DemocracyAndRegulation.com Or
38 ABOUT THE SPEAKERS Theo MacGregor served more than ten years with the Electric Power Division of the Massachusetts Department of Public Utilities. She is currently the sole proprietor of MacGregor Energy Consultancy, specializing in low-income, consumer protection, and energy efficiency issues for government agencies, low-income advocates, attorneys general, utility companies, consumer advocates, and others.
39 ABOUT THE SPEAKERS Jerrold Oppenheim directed d energy and utility litigation i i for the Attorneys General of New York and Massachusetts. He also directed consumer and utility legal assistance programs in New York, Boston, and Chicago. Together, they are authors of The Economics of Poverty: How Investments to Eliminate Poverty Benefit All Americans and, with Greg Palast, of Democracy and Regulation,, published in February 2003 by Pluto Press, London, and winner of the Upton Sinclair "Freedom of Expression" award. More information is available on their website,
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