What Does a Public Service Commission Do, Anyway?
Lately, the Alabama Public Service Commission (PSC) has received a ton of attention around these parts. So you might be wondering, what does a public service commission do, anyway?
If you only read this blog, you might think the Alabama PSC was our nemesis or something – a regulatory Joker to our energy-industry-disrupting Batman. (No? Well, just humor us for a moment, k?) First, we told you about some comments we made for the PSC’s recent proceeding about EV charging stations. Then we told you about how we’re joining forces with some other advocates in calling for a public PSC hearing over some big Alabama Power tax savings. And most recently, we shared how some others have filed a complaint over a PSC-related solar tax. Whew.
The reality is that the PSC isn’t our nemesis at all. We just happen to disagree with a few policy positions they’ve taken. Honest! Our hope is that, through our advocacy for renewable energy, the PSC will adopt more progressive policies in regards to energy. That’s all.
But here’s the thing. Since we’ve been talking about the PSC so much lately, we’ve heard one question more than any other. What, exactly, is the purpose of a public service commission?
‘To Ensure Regulatory Balance’
Here’s the elevator pitch, straight from the Alabama the Alabama PSC website: “To ensure a regulatory balance between regulated companies and consumers in order to provide consumers with safe, adequate and reliable services at rates that are equitable and economical.”
What does that mean? It means the PSC is supposed to regulate monopolies like electric utilities (read: companies like Alabama Power). The idea is that it’s fine for a utility to operate without competition – you know, as a monopoly – because of the huge amount of infrastructure needed to deliver electricity or water. Think about how enormous the power grid is. It wouldn’t make sense to have multiple power grids in one town, would it? Many public service commissions regulate other monopolies like telecoms and natural gas companies.
But while it makes sense for utilities to function as government-backed monopolies, oversight is still needed. After all, they are still monopolies. And unchecked monopolies do not have a great reputation for doing the public good. (Think airlines, cable companies, Microsoft in the 1990s, your brother when he owns Park Place and Boardwalk, etc.)
That’s where the PSC comes in. In theory, the PSC ensures that consumers enjoy reliable service while paying a fair rate for it. There’s more to it than that, but you get the idea. In Alabama, the PSC has three members: Two Associate Commissioners and one President. All three won their seats in statewide elections, and two of them are up for re-election in 2018. That means they serve YOU.
So it only makes sense (it does to us at least) to call out the Alabama PSC and Alabama Power for something like that solar tax mentioned above. And it makes complete sense to call for complete transparency in PSC decision-making, like the Alabama Power tax savings. After all, the PSC exists to serve consumers, not just utilities. We elected them. Now we should put them to work.
What do you think? What would you like to see the Alabama PSC – or any PSC – accomplish the next time it meets? You should tell them.