State Regulatory Relations

Breaking News! — NARUC Water Committee Appointments

The Honorable David King, chairman of the National Association of Regulatory Utility Commissioners Committee on Water, has announced the appointment of two vice chairs for the committee. The West Coast vice chair is The Honorable John Bohn, California Public Utilities Commission, and representing the East Coast will be The Honorable John Howard, South Carolina Public Service Commission. The appointments will become effective immediately.

2006 Sourcebook of Regulatory Techniques for Water Utilities Now Available

The newly updated Sourcebook of Regulatory Techniques for Water Utilities is now available from NAWC. The Sourcebook was developed by Dr. Janice Beecher, Director of the Institute of Public Utilities, Michigan State University.

The Sourcebook of Innovative Regulatory Practices contains a wealth of information about regulatory practices, policies, NARUC resolutions, and reports. The Sourcebook includes a compilation of new, innovative, and best practices by state regulatory commissions related to water utility regulation.

The purpose of the Sourcebook is to provide water industry and public-sector professionals with a comprehensive compilation of regulatory policies and practices. The purpose of the Sourcebook is not to emphasize, endorse, or advocate any particular approach, but rather to provide information resources. The Sourcebook is designed to aid research and promote dialog on a wide range of alternative regulatory techniques.

The Sourcebook is a living document and will continuously be updated. The most current version can always be ordered on NAWC’s website at http://members.nawc.com/Purchase/SearchCatalog.aspx. It is free to NAWC members and commissions and $200 for nonmembers. If you have any suggestions or comments for future updates of the Sourcebook or reference material that you would like to submit for inclusion, please contact Cade Clark at cade@nawc.com or Sharon Gascon at sharon@nawc.com.

Western States Pledge Regional Cooperation

Four western state public utility commissions held a signing ceremony on Dec. 1, 2006, adopting a Joint Action Framework on Climate Change. The resolution outlines a strong commitment to regional cooperation to address climate change. It reflects shared principles to act on the development and use of low carbon technologies and renewable energy resources, and promote energy efficiency, conservation, and demand response programs.

The ceremony was held in San Francisco, and the four signatories were the California Public Utilities Commission (PUC), the Washington Utility and Transportation Commission (UTC), the Oregon Public Utility Commission (PUC), and the New Mexico Public Regulation Commission (PRC).

The resolution declares that global warming is a serious and growing threat to the health, safety, and welfare of all peoples; that fossil fuel-based electricity generation is a major contributor of greenhouse gas emissions that cause climate change; and that policy-makers at all levels are recognizing the need to mitigate the adverse impacts of climate change resulting from continued reliance on fossil fuels. It adds that climate change itself may lead to a significant increase in demand for energy, as well as significant decreases in hydropower resources.

The resolution sets forth five shared principles to serve as a general guide for energy resource oversight by the commissions, as well as for planning by the regulated utilities and the investment community:

• Regional cooperation to address climate change;
• Development and use of low carbon technologies in the energy sector;
• Promotion of conservation and demand response programs;
• A strong, continued commitment to renewable energy resources; and
• Reliance upon integrated resource plans to inform utility and commission decisions.

“Regional cooperation is fundamental to advancing energy efficiency as our highest priority resource to meet growing energy needs in a clean, low cost manner,” said Michael R. Peevey, president of the California Public Utilities Commission. “The four commissions will work together to implement shared principles for energy efficiency as a tool to reduce emissions and mitigate the effects of climate change.”

N.Y. Updates Accounting for Medicare D

The New York Public Service Commission (PSC) has issued an update to its current policy regarding utility accounting for retiree prescription drug benefits. Under the 2003 Prescription Drug and Medicare Improvement act, employers that include prescription drug benefits as part of a retirement plan will receive subsidy payment from the federal government beginning in 2006. The Act also extends tax benefits to eligible employers by excluding the subsidy payments from taxable income.

The commission found that in order to avoid creating a financing requirement, accounting and rate-making for the Act should reflect the tax benefits in rates after the benefits are realized rather than at the time the subsidy is received. The commission had earlier issued a statement informing the state's electric and gas utilities that they must apply deferral accounting treatment for expenses and benefits the companies might experience as a result of the new federal law affecting retiree prescription drug benefits.

PUC Begins Process to Update Regulations on Residential Utility Service Standards

The Pennsylvania Public Utility Commission (PUC) initiated the process to update its residential utility service standards regulations in order to make them consistent with legislative changes regarding how utilities address delinquent residential accounts.

“Central to this rulemaking process is the commission’s continuing obligation to protect the health and safety of utility consumers throughout the state,” said Commission Chairman Wendell F. Holland. “Ensuring a fair and equitable working relationship between consumers and the utilities will be the primary focus as we engage consumers, their advocates, and utility companies in the discussion as the commission works to update our regulations.”

The commission voted to begin revising its regulations, bringing them in line with Act 201 of 2004, also known as Chapter 14. Chapter 14 seeks to eliminate opportunities for customers capable of paying their utility bills to avoid payment, and to provide utilities with the means to reduce their uncollectible accounts. The law changed the way regulated electric, water, and major natural gas utilities handle cash deposits, reconnection and termination of service, payment arrangements, and the filing of termination complaints by residential customers. The commission will use the opportunity to address other issues including updates needed due to technological advances including electronic billing and payments, e-mail, and the Internet.

NARUC Hires New Media and Public Affairs Coordinator

NARUC hired Rob Thormeyer as its new media and public affairs coordinator.
In this position, Thormeyer will coordinate the association’s outreach to the media and the general public through writing, editing, and distributing press releases, speeches, and legislative and legal documents.

He also assists in writing and editing several in-house NARUC publications, including the Gas News Bulletin and other policy-related documents.

He joins NARUC after eight years as a trade reporter, spending the bulk of his journalism career writing about energy and electricity policy for a number of publications, including “Electric Utility Week,” “Power Markets Week,” “Inside FERC,” and “Megawatt Daily.”

More recently, he covered the federal high-tech market for publications owned by The Washington Post Company. He was a recurring guest on Federal News Radio 1050 AM and several of his articles were published in The Washington Post.