Among the many appointments that Gov. John Hickenlooper must make to a wide range of boards and commissions in state government, probably none has a more profound impact on the day-to-day lives of Coloradans than the nominees to the Public Utilities Commission. Its three members have far-reaching regulatory authority over some of the most vital, basic services to our state’s homes and businesses, including heat, power and phone service.
The March announcement that PUC member Matt Baker will not serve a second term, following the departure last year of PUC Chair Ron Binz, provides another opening for the governor to advance his administration’s support for consumer protection and economic development.
The governor has the opportunity to continue reshaping this powerful public agency into one that better serves Colorado consumers and promotes economic growth.
Last year, Gov. Hickenlooper appointed Joshua Epel, a respected expert on utilities regulation, as the new commission chair, and now Colorado consumers are hopeful about the potential for even more fresh thinking on the commission.
Fair and stable energy rates are vital to our state’s economic health and to the well-being of all its citizens — from the employers who must create our jobs to households on limited or fixed income that struggle to pay their utility bills. Hopefully, Gov. Hickenlooper will give these issues highest priority when choosing the next nominee to the commission.
Colorado consumers have been subjected to significant rate increases in recent years, hindering our state’s economic recovery. With a $114 million rate hike now pending before the current commission, Minneapolis-based Xcel Energy already had been permitted by the previous PUC to raise electricity rates by 20 percent over six years on some 1.4 million Coloradans. Two of those power-rate increases, totaling $240 million, were allowed over just four years.
Meanwhile, Rapid City, S.D.- based Black Hills energy was granted a roughly 10 percent rate hike for its Pueblo-area ratepayers after being allowed a 10 percent hike the year before, as well. Moreover, these increases have yet to truly take into account rate increases that will occur due to the implementation of House Bill 1365, which consumers will bear the cost of in coming years. The public’s perception throughout it all has been that the PUC, charged with policing the power industry, has in fact been all too generous to it.
And rising rates haven’t been the only concern regarding the past commission. Conflict-of-interest allegations were leveled at some commissioners and, more generally, the previous commission was accused of placing a costly, politicized, and ideological energy agenda above the interests of ratepayers.
Hickenlooper’s support for greater balance in energy policy in general has been a source of encouragement for Colorado’s electricity consumers. The degree to which the governor can lend more of that same sense of balance and perspective to the PUC by appointing an experienced, knowledgeable and balanced commissioner will go a long way toward reviving public confidence in the agency — and restoring fairness to Colorado’s hard-pressed consumers.
Bill Ray is director of the Colorado Consumer Coalition.
