You probably have spent some time thinking about public utility commissions if you have any interest in the energy transition - usually something like 'why are they getting in the way and/or screwing things up?' Andy pointed to a talk on a new organization with some ideas. Over an hour.. I read the transcript.
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David Roberts
I'm so geeked about this. I've been geeked about this for a long time, ever since we first talked about it. This is one of those ideas that I just feel like, you know, the time has come. I'm really excited to walk through it. So, you know, I said in the intro, PUCs, there's one in every state. Their job is to regulate utilities. Maybe let's just talk a little bit to begin with, for two or three minutes, just about what do they do? Kind of on a day-to-day basis. What does it mean that PUCs regulate utilities?
Charles Hua
Sure. So first, we're spending an hour talking about PUCs because they're the most important, least understood body in energy. I like to call them the guardians of the energy transition. So, what do they do? Well, they regulate all kinds of utilities: electricity, gas, telecoms, water, or in some cases, rail and transportation as well. They usually regulate the investor-owned utilities in the state, although sometimes they regulate the munis and rural electric co-ops. And broadly speaking, they're in charge of three really important things. One is how much people pay for energy; two is how much utilities invest in different forms of energy; and then third is where certain energy and transmission projects are located.
They can play other roles as well. They participate in regional transmission organizations. They coordinate with the Federal Energy Regulatory Commission, and they implement federal and state policies like the Inflation Reduction Act and Renewable Portfolio Standards. So, they're really, really powerful. In fact, these 200 people oversee over $200 billion in annual utility spending. That's a billion dollars a person. Yet, few people know who their state's PUC commissioners are or what they do. And we should be talking about them like they're Supreme Court justices in terms of their impact on energy and equity issues.
David Roberts
It is a little crazy how much people in our world complain about utilities — and here I am, very much looking in the mirror — and how little they complain about PUCs. But as you say, like, utilities can't really do anything without PUC permission. Like almost nothing. They can't raise rates, they can't spend substantial amounts of money, they can't permit large projects. All of it goes through this regulatory body. And yet, as you say, it's bizarre: they almost never come up in conversation. Like, I bet not one person out of a thousand could tell you the name of a single person on their state's PUC.
Charles Hua
That's generous.
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