By Hudson Sangree

CHEYENNE, Wyo. — Commissioners from a dozen Western states gathered here to share their concerns and discuss the challenges of their jobs. At the top of the list was the role politics is playing in their decision-making.

Two panels at the annual Western Conference of Public Service Commissioners meeting held June 2-5 were set up to allow regulators to pose questions to their colleagues from neighboring states and prompt discussions.

Some asked if regulators should advocate for legislation or cheerlead for their utilities on Wall Street. Others questioned whether policy agendas — not reliability or affordability needs — are driving the rapid increase in wind and solar power in the West. And still others talked about the way state politics affect their internal processes.

In the case of California, for instance, lawmakers have been pushing the Public Utilities Commission to act with greater speed in the face of catastrophic wildfires and the Pacific Gas and Electric bankruptcy. They’ve frequently criticized the PUC for acting too slowly, Commissioner Clifford Rechtschaffen said during the first commissioners’ panel Monday. (See Lawmakers Grill CPUC President on PG&E, Fires.)

“The criticism intensified over the past year with the PG&E bankruptcy,” Rechtschaffen said. It’s true the CPUC moves slowly, he said. It’s set up to make big decisions slowly and deliberately based on the record before it, he said.

“A lot of people want us to make our processes more informal and quicker,” he said. “How do we do that … while still ensuring the integrity of our process?” Or, he asked, should the PUC maintain its plodding formality while responding to hundreds of rate cases?

“We’re deciders, not policymakers,” Rechtschaffen said. Without clear guidance from the legislature, it will be difficult to change course and speed, he said.

Megan Decker, chair of the Public Utility Commission of Oregon, empathized.

“Having deadlines mandated on us is a pet peeve for me,” she said. And “not having clear expectations from the legislature means having more work at the commission level.”

Idaho Public Utilities Commission President Paul Kjellander said, “Lawmakers say they want to see regulation at the speed of technology.” In many cases, new technology presents cases without legal precedent, requiring more time, he said. “How do we get that message across to policymakers trying to speed things up?”

There should be no regulatory lag, he said, but cases should be decided in the “time it takes to make a good decision, and then call it a day.”

He also took issue with Western policies driving green energy projects, which he described as “policy-driven economics.”

PacifiCorp subsidiary Rocky Mountain Power last year came forward with a proposal to add 1,150 MW of new wind power, but Idaho won’t have an electricity deficit until 2026, Kjellander said. Under the longstanding principle requiring new utility assets to be “used and useful” to ratepayers before they’re made to foot the bill, the three new wind projects would have been a “no go,” he said. Yet the commission approved the projects, located in Wyoming, last year, he said. The utility, which serves parts of Idaho, Utah and Wyoming, needed to get them into service by 2020 to take full advantage of the federal production tax credit.

Commissioner Ann Rendahl said the Washington Utilities and Transportation Commission had gotten plenty of instructions from state lawmakers. “We got two gifts from them this year,” she said with a hint of sarcasm.

One directs the UTC to implement a new state policy mandating that Washington go carbon-neutral by 2030 and 100% carbon-free by 2045.

Another change affects ratemaking, allowing utilities to begin recovering costs for their four-year clean energy implementation plans in advance of acquiring or building out the needed resources to meet the targets under those plans. That’s a big change for Washington, which traditionally has granted returns only on past investments, Rendahl said.

“We’re a historical state,” she said.

In her question to colleagues, Decker asked about having to integrate sectors in which regulators don’t traditionally have expertise, such as emergency preparedness.

Rendahl said her commission had been given oversight of party boats, provoking audience laughter.

Rechtschaffen said California regulators had dealt with a lack of experience by signing memoranda of understanding with sister agencies. “The area we’re seeing it most acutely is … wildfire safety.” The PUC signed MOUs with the state Department of Forestry and Fire Protection and Office of Emergency Services. It’s been “shameless” about partnering with federal agencies and seeking help from Silicon Valley, he said. (See Silicon Valley Tackles Wildfire Prevention.)

Montana Public Service Commission Chairman Brad Johnson said he had been working with a colleague to build a regional structure through the Council of State Governments to foster communication between lawmakers and regulators.

“We need to be careful we don’t come across as lecturing our legislative counterparts,” Johnson said. “I think if we don’t approach this carefully, we could create some real pushback.”

‘My Little World’

A second panel of commissioners on Tuesday raised questions about talking to Wall Street analysts.

Washington UTC Commissioner Jay Balasbas said he had once accepted an invitation to an analyst talk, though he had deep misgivings.

Utah Public Service Commissioner Jordan White said he would most likely decline such an invitation. “With rate cases before me, I would probably say no.”

The commissioners also questioned whether regulators should be seen as endorsing bills.

“You have to measure how much is appropriate risk and how much is risk you can take,” said Jeff Ackermann, chairman of the Colorado Public Utilities Commission. For instance, when being asked to testify as a subject matter expert on a bill, “It’s unclear whose team, if any team, I’m on or trying to be an adjunct player for. What is an appropriate role?”

Generally, commissioners aren’t supposed to advise lawmakers on policy development, he said. The old saying is that regulators are “policy takers, not policymakers,” he said. “But as energy policy gets more complex, we’re going to be drawn into it.”

White said there are times regulators should address lawmakers in a “very mechanical, technical” manner to provide expertise, but that speaking with policymakers usually makes him uncomfortable.

“It gets dangerous when they try to pull us into their lane,” White said. “As much as I can, I try to stick to my little world.”