Missouri Regulators Consider Changes in Rules on Meetings
By Steve Everly, The Kansas City Star, Mo.
Jan. 8–The head of the Missouri Public Service Commission said Monday that the regulatory body needed to be more “transparent” so that consumers would trust its decisions.
His remarks came at the conclusion of a public meeting in Jefferson City over whether there should be additional restrictions on private meetings that regulators have with utilities. The issue erupted last month when it was disclosed that Aquila Inc. and Great Plains Energy Inc. had met privately with four of the five current members of the Public Service Commission to discuss a merger between the two companies just days just days before it was announced.
Under current state law, those meetings did not even have to be disclosed — and they were not, since there was not a pending case before regulators. But Jeff Davis, chairman of the Public Service Commission, indicated he would support having such meetings disclosed in advance. He said having the conversations that take place during such meetings either recorded or transcribed should also be considered.
“For the public to have confidence in the decision they have to have confidence in the process,” he said.
The outcry over the meetings — and widespread opposition to a provision in the plan shifting Aquila debt to customers — led Great Plains to withdraw its proposal, although it said it would work to submit an alternative plan.
Appearing at the meeting Monday was a coalition of consumer groups that included the Missouri Office of the Public Counsel, AARP, the Consumers Council of Missouri and groups representing industrial electric users. The coalition members agreed that changes were needed.
“I think there is a problem with the rule,” said Lewis Mills, head of the Office of the Public Counsel, which represents consumers in utility matters.
Mills said there should not be any discussion during such meetings of any issues that could arise in a case coming before the commission. The meetings should be disclosed, he said, and any discussions transcribed.
Some of the proposed changes could require action by the Missouri General Assembly.
Private meetings between utilities and regulators and a cozy relationship between them has previously raised suspicions that the access gives the utilities undue influence.
Concern about undue influence seemed confirmed last month when e-mails were disclosed that were written by Richard Green, the chief executive officer of Aquila, to his board of directors. He wrote that in private meetings, Kansas and Missouri regulators indicated they would favor the sale of Aquila and a plan that would shift costs to consumers.
In one e-mail, Green wrote that Davis would push to get the deal approved. Davis has denied he said that. Both Green and Michael Chesser, chief executive officer of Great Plains, have said the meetings were meant to gauge regulatory support.
The consumer coalition’s bid to restrict the meetings has opposition. The Public Service Commission’s staff says the changes would be unworkable and unnecessary since the commission’s decisions are subject to judicial review.
The Missouri Energy Development Association, which represents the state’s gas and electric utilities, also said the proposal would impede the flow of information and would do the public “a disservice.”
To reach Steve Everly, call 816-234-4455 or send e-mail to severly@kcstar.com.
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