State Regulatory Relations

NARUC Water Committee Adds New Member

Commissioner Patricia Acampora of New York has been appointed as a member of the National Association of Regulatory Utility Commissioners (NARUC) Committee on Water.

Commissioner Patricia L. Acampora was appointed Commissioner of the New York State Public Service Commission on June 16, 2005. Her term runs through February 1, 2009.

Immediately prior to her appointment, Commissioner Acampora served for 12 years in the New York State Legislature representing the 1st Assembly District on Long Island. As an Assemblywoman, she was a Ranking Member of the Labor Committee; a member of the Consumer Affairs and Protection Committee; the Corporations, Authorities, and Commissions Committee; Banking Committee; and the Governmental Employees Committee. She also served as a member of the National Legislative Task Force on Criminal Justice and the Assembly Health Care Task Force.

Commissioner Acampora was the first woman to serve as president of the New York Conference of Italian-American State Legislators since the bipartisan conference began nearly three decades ago. She was also a member of the Women's Legislative Caucus. Prior to being elected, Commissioner Acampora worked as an assistant to Suffolk County Executive Robert Gaffney and served as a liaison to the Suffolk County Legislature. Prior to her career in public service, Commissioner Acampora worked in the private sector in retail management.

A dedicated community leader, Commissioner Acampora was a former member of the Nassau-Suffolk Juvenile Diabetes Board, and is currently an active member of the East End Women's Network, the Capital Network Women's Group, and many other local community organizations. Commissioner Acampora continues to be a vocal community advocate for children's rights and the need to preserve the environment.

To view all the members of the Water Committee, please click here: http://www.naruc.org/committees.cfm?c=10

Dr. Salmon Re-Elected

For a seventh-straight year, Dr. Edward H. Salmon, a former State regulator, was elected president of NARUC’s Commissioners Emeritus organization.

Dr. Salmon served six years as a state utility regulator and three years as president of the New Jersey Board of Public Utilities. He also served as NARUC’s vice president, president of Great Lakes Conference, chairman of the NARUC Executive Committee and founder of the Washington Action Committee.

Also elected were Vice President John M. Quain of Pennsylvania and Secretary/Treasurer Sandra L. Hochstetter of Arkansas.

Colorado Public Utilities Commission Appoints New Commissioners

Jim Tarpey was appointed as a Commissioner of the Colorado Public Utilities Commission (PUC) by Governor Bill Ritter, Jr., and began serving on January 2, 2008.

As an attorney, Commissioner Tarpey has extensive experience with utility matters. He has participated in numerous regulatory proceedings involving alternative forms of regulation; rate related issues; territorial, and certificate disputes; and issues related to local telecommunication markets and the 1996 Telecommunications Act.

From 2001 through 2007, Commissioner Tarpey was in private practice and generally represented energy consumers in utility proceedings. From 1996 through 2000, he was a business executive involved in regulatory matters. From 1977 through 1996, he was in private practice and represented various utilities. Prior to private practice, he was an Administrative Law Judge for the Colorado PUC and an Assistant Attorney General representing the Colorado PUC. From 1968 through 1972 he was a Special Agent with the Federal Bureau of Investigation (FBI).

Commissioner Tarpey received a bachelor’s degree in business administration from Saint John’s University in 1965 and a law degree from Fordham University in 1968.

On January 15, Governor Bill Ritter announced the appointment of Matt Baker to a four-year term on the Colorado Public Utilities Commission, filling a vacancy left by Paulette "Polly" Page, whose second term expired Jan. 8.

Commissioner Baker has served as executive director of Environment Colorado since 2003. He led the Amendment 37 campaign and was involved in the FasTracks campaign, both in 2004. He also advocated on behalf of the Clean Energy Fund, increased transmission capacity for wind energy, and establishment of the Colorado Clean Energy Authority.

Commissioner Baker has worked for public interest research groups in Massachusetts and New Jersey, and served as executive director of the Colorado Public Interest Research Group from 2001 to 2003. He is a recipient of the Wirth Chair for Renewable Energy Advocacy and was vice chair of the Transit Alliance. He is a 1987 graduate of Pennsylvania State University.

Commissioner Baker's appointment requires Senate confirmation.

Santa Fe Current Issues Program

The Center for Public Utilities Advisory Council of New Mexico State University will hold the Current Issues 2008 Santa Fe Conference March 16–19, 2008 at the Eldorado Hotel in Santa Fe, N.M.

John Young, COO, American Water will present on the panel, “All Industries’ State of the Sector Address: CEO Overview and Discussion of Critical Issues Facing Businesses, Consumers and Commissioners.” This panel will explore the “State of the Sector” issues most pertinent to each utility industry and discuss possible solutions and action steps that need to be taken.

Ben Lewis, director of Customer and Operations Support Western Region, American Water will present on the panel, “The Growing Gap between Rising Demand and Dwindling Reserve Margins: Demand-Side Options.” This panel will cover the demand-side resources, rate options, energy-efficiency programs and emerging technologies that are being implemented to bridge the gap between supply and demand.

Please click here for the program agenda.

DOT Moves to Protect Great Lakes

The United States Department of Transportation (DOT) has published a new rule requiring oceangoing vessels to flush their ballast tanks with saltwater before entering the St. Lawrence Seaway. It is hoped that this requirement, which will take effect in March, will stem the introduction into the Great Lakes of zebra mussels and other invasive freshwater species and plants, which together are believed to cause $5 billion in damage per year. A similar rule was adopted by Canadian officials in 2006.

Aquarion Granted Rate Increase

The Connecticut Department of Public Utility Control (DPUC) granted Aquarion Water an increase in annual operating revenues of approximately $19.3 million. Docket No. 07-05-19 (December 12, 2007). The DPUC concluded that the cost of common equity for a water utility fell in the range of 9.3 percent to 11.13 percent and awarded Aquarion an equity allowance of 10 percent, based, in part, on Aquarion’s above average common equity ratio (55 percent). The DPUC also adopted a weather normalization adjustment based on four-years average consumption in determining pro forma revenues and will allow Aquarion a limited re-opener to recognize the completion of several significant construction projects. In addition, the DPUC congratulated Aquarion for being the first regulated utility in Connecticut to develop and implement a low-income customer assistance program.

New York PSC Exempts Applied Water Management from Utility Regulation

In an order issued on January 25, 2008, the New York Public Service Commission (NYPSC)declared that Applied Water Management (AWM), a wholly-owned subsidiary of American Water Works Company and an affiliate of Long Island Water, was exempt from regulation as a waterworks corporation (Case 07-W-0180). AWM designs, operates and owns water reuse systems in newly constructed or renovated residential buildings. The systems collect on-site wastewater and stormwater, treat it, and redistribute it to residents for non-potable purposes, such as irrigation, flushing and cooling processes. In explaining its ruling, the PSC reasoned as follows:

The comprehensive scheme established in the Public Service Law for regulation of water companies and the fixing of rates does not apply to AWM. It offers a specialty water reuse service, through installation of its systems on private property, under a contract with the building’s owner, for distribution solely on private property for the use of the building’s owner or condominium association and residential occupants.

Condemnation to Proceed In California

On January 18, 2008, a California Superior Court judge denied a motion filed by California-American Water Company (CAWC) seeking the dismissal of a condemnation action brought by the San Lorenzo Valley Water District. CAWC contended that the District had erred in not including a water treatment plant in its appraisal of CAWC’s Felton system. The District countered that the plant was included in its appraisal, but assigned no value because it had been built with state-provided funds and, consequently, was not part of CAWC’s rate base.