The Montana Legislature needs to reform the Public Service Commission
Author: Senator Gayle Lammers, R-Hardin, and Rep. Bob Carter, D-Missoula
The Montana Legislature needs to reform the Public Service Commission
Senator Gayle Lammers, R-Hardin, and Rep. Bob Carter, D-Missoula
For more than two decades, the Montana Legislature has attempted to flip the switch on the inherent structural problems with the Public Service Commission, the primary body responsible for regulating investor-owned monopolies throughout the state.
One only needs to scan the news headlines to see some of the problems plaguing the PSC. Allegations of misconduct, abuse, harassment, and unprofessionalism would cast a dim light on any work environment, which may be the reason for the shocking number of executive directors the agency has cycled through. It is said the PSC tends to be a parking spot for retired legislators who want to earn a six-figure income.
Montana deserves better.
First, we need to reform the process that allows for a politically charged culture. The challenges faced by the commission are inevitable when it is organized as a political popularity contest. There are no minimum professional or experience requirements to run for the PSC. Winning an election does not qualify one to do the serious job of regulating utilities. At a minimum, regulators should be required to have regulatory, technical or industry expertise - this is not the case in Montana.
The current PSC structure dates to 1974, and Montana is only one of ten remaining states that still elect their commissioners to this important statewide agency.
The first draft of our proposed restructured PSC uses a three-step process to appoint commissioners:
1.) The Montana House of Representatives (or likely a committee designated by the House) will research and choose a slate of candidates for an open PSC seat based on a set of minimum professional qualifications.
2.) The governor chooses an appointment from a highly qualified slate of candidates.
3.) The Senate confirms the governor’s choice.
It sounds simple, right?
Of course, the devil is always in the details, and there are many details yet to work out. Key questions include: How strict to make the professional requirements? How many years will they serve? How to remove some of the politics from what should be a regulatory body? Should the Senate confirmation require a simple majority or more to ensure broad acceptance? Should there be a cooling-off period to prevent conflicts of interest with the regulated industries? Do we dissolve the current commission and start fresh with newly appointed professionals? These are just a few of the questions we intend to answer over the next year before the full legislature meets again.
On January 15, we presented our draft proposal to the legislative Energy Interim Committee and the committee voted unanimously to move forward with an initial bill draft proposal. Our bill draft includes many concepts that are working well in other states, and we will continue our efforts to reach out to stakeholders across the state over the next year while we refine this proposed policy. Integrity and transparency will be key to our bill drafting process to make for a better Public Service Commission here in Big Sky Country.
The energy picture in Montana has shifted over the past decade and will change even more in the future. The importance of modernizing the PSC cannot be overstated. In an era of increasingly complex energy challenges, we need an updated regulatory structure to balance affordability, reliability, and forward-thinking strategies. It is time to reject the status quo and provide consistency to the regulatory process. A reformed PSC is one that will ensure regulatory decisions are made to drive long-term economic growth and a brighter future for our citizens and businesses alike.
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PhotoCredit: Gayle Lammers
Image 1 Caption: Senator Gayle Lammers - Hardin
Photo Provided by Gayle Lammers
Image 2 Caption: Representative Bob Carter - Missoula
Photo Provided by Gayle Lammers
