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OLR Research Report


January 20, 2009

 

2009-R-0030

QUALIFICATION REQUIREMENTS FOR PUC COMMISSIONERS

By: Kevin McCarthy, Principal Analyst

You asked for a description of the qualifications required for Public Utility Commission (PUC) commissioners in other states. You were particularly interested in states that have requirements that go beyond Connecticut's.

SUMMARY

Connecticut requires that the five PUC commissioners have backgrounds in one of 10 specified fields, and that at least one of the commissioners have a background in consumer advocacy.

Most states do not have statutory or constitutional qualification requirements for their PUC commissioners, although several, including Nevada, New Hampshire, and Rhode Island, have requirements similar to Connecticut's. Massachusetts requires that commissioners have backgrounds in the industries the commission regulates. Several states, including Maryland, Montana, and Nebraska, have provisions to ensure that commissioners come from various parts of their respective states. Maryland, Minnesota, South Carolina, and Tennessee have broader diversity provisions in their laws.

Florida, Ohio, South Carolina, and Vermont have procedures for nominating commissioners that differ substantially from Connecticut's. Florida requires that the governor's nominations come from a list of three candidates approved by a council, whose members are appointed by legislative leaders. In Ohio, a nominating council representing a wide range of interests must provide the governor with the names of four individuals for each vacancy on the commission. In South Carolina, the commissioners are elected by the legislature from candidates named by a committee that consists of six legislators and four members of the public chosen by legislative leaders. Vermont requires that commission nominees be reviewed by the Judicial Nominating Board.

CONNECTICUT'S REQUIREMENTS

CGS § 16-2 establishes a five-member PUC. It requires that commissioners appointed on or after October 1, 2007 have three or more years of experience in one or more of the following fields: economics, engineering, law, accounting, finance, utility regulation, public or government administration, consumer advocacy, business management, and environmental management. At least three of these fields must be represented on the PUC by individual commissioners at all times. At least one of the commissioners must have experience in utility customer advocacy.

In addition to these qualifications, the section bars commissioners from having conflicts of interest. These include (1) having any interest; (2) engaging in any business, employment, transaction or professional activity; or (3) incurring any obligation that is in substantial conflict with the proper discharge of the commissioner's duties. In addition, commissioners may not, in the first year following the end of their service as a commissioner, accept employment by a utility or other firm regulated by the Department of Public Utility Control, or as a lobbyist for such firms. Former commissioners who are attorneys cannot appear or participate in any matter, or accept any compensation regarding a matter, before the PUC for one year following the end of their service as a commissioner. Finally, no more than three of the five commissioners can be members of the same political party.

REQUIREMENTS IN OTHER STATES

Most states do not impose any qualification requirements on commissioners, although many have conflict of interest and party affiliation provisions that are similar to Connecticut's. In Georgia, which elects its PUC commissioners, anyone over 30 who does not have a conflict of interest may run “without regard to his experience in law or in the utility or transportation business'' (PUCs in several states regulate rates charged in certain types of transportation). Montana and Nebraska elect their commissioners by district but do not impose any qualification requirements on them other than being electors.

States with Requirements Similar to Connecticut's

A number of states have qualification requirements that are similar to Connecticut's. In New Hampshire, N. H. Rev. Stat. Sec. 363. 1, requires that one of the three commissioners be an attorney and a member of the New Hampshire Bar and one have either background or experience in engineering, economics, accounting, or finance. Rhode Island requires that its five commissioners be selected with regard to their qualifications and experience in law and government, energy matters, economics and finance, engineering, and accounting (R. I. Gen. Laws Sec. 39-1-4). Nevada requires its commissioners to have at least two years' experience in accounting, business administration, finance or economics, administrative law, or professional engineering. No more than two of its three commissioners may be from the same field of experience (Nev. Rev. Stat. Sec. 703. 030). West Virginia requires that one of its three PUC commissioners be a lawyer with at least ten years of experience in the state (W. V. Code Sec. 24-1-3).

States with Qualification Requirements that Differ from Connecticut's

Massachusetts requires that one of the five commissioners have a background and expertise in electricity, natural gas, or other energy issues; one in telecommunications issues; one in consumer protection and advocacy issues; and one in cable television issues (Mass. Gen. Laws title 25 sec. 2).

Maryland does not have specific qualification requirements for members of the Public Service Commission, but does require that the commission be broadly representative of the geographic and demographic diversity of the state and the public and composed of individuals with diverse training and experience (Md. Ann. Code Sec. 2-102)

While Minnesota's background requirements are similar to Connecticut's, it also requires that the commissioners be “representative of the general public” and that at least one of the five commissioners reside outside of the seven-county Twin Cities region (Minn. Stat. Sec. 216A. 03).

The Tennessee commission has four members, one appointed each by the governor, speaker of the Senate, and speaker of the House, and one appointed jointly by these officials. In making the appointments, the

officials must strive to ensure that the commission is composed of individuals who are diverse in professional or educational background, ethnicity, geographic residency, heritage, perspective, and experience (Tenn. Code Sec. 65-1-101).

Different Nomination and Appointment Processes

Florida has qualification requirements that are similar to Connecticut's but has a very different appointing process. Under Fla. Rev. Stat. Sec. 350. 031, the governor cannot nominate someone for appointment to the Public Service Commission until the Public Service Commission Nominating Council has determined that the person is competent and knowledgeable in one or more fields including: public affairs, law, economics, accounting, engineering, finance, natural resource conservation, energy, or another field substantially related to the commission's duties and functions. The council must nominate to the governor, on a nonpartisan basis, at least three persons for each vacancy occurring on the commission. The council consists of 12 members, six appointed by the Senate president and six by the House speaker. Three of each leader's appointees must be members of their respective chamber, two from the majority party and one from the minority party. At least one of the 12 members must be at least 60 years old. The governor's nominee must undergo a background investigation by the Florida Department of Law Enforcement before being confirmed by the Senate.

Ohio's five commissioners must have at least three years of experience in economics, law, finance, accounting, engineering, physical or natural sciences, natural resources, or environmental studies. At least one commissioner must be an attorney (Ohio Code Sec. 4901. 02). The governor must nominate a candidate that has been named by a nominating council, which consists of representatives of a wide range of interests, including business, labor, the regulated utilities, the state municipal league and bar association, and the Consumer Counsel's office. The council must provide the governor with the names of four individuals that in its judgment would be best qualified to serve on the commission. To the extent possible, the council must attempt to ensure that the background of two commissioners is primarily in energy and that the primary focus of the background of two commissioners is in transportation or communications technology (Ohio Code Sec. 4901. 021).

South Carolina has a seven-member commission. Members appointed for a term beginning after June 30, 2006 must have a bachelor's degree and a background of substantial duration and an expertise in energy issues; telecommunications issues; consumer protection and advocacy issues; water and wastewater issues; finance, economics, and statistics; accounting; engineering; or law (S. C. Code Sec. 58-3-20 et seq. ).

The General Assembly must elect members of the commission on the basis of congressional districts. The State Regulation of Public Utilities Review Committee must nominate up to three individuals for each seat on the commission. The committee has 10 members, three House members (including the chair of the Labor, Commerce, and Industry Committee or his or her designee), three Senate members (including the chair of the Judiciary Committee or his or her designee), two public members appointed by the chair of the Senate Judiciary Committee, and two public members appointed by the house speaker. Race, gender, and other demographic factors must be considered in making appointments to the committee to assure nondiscrimination, inclusion, and representation to the greatest extent possible of all segments of the state's population. The public members must be representative of all of the state's population and may not be legislators (S. C. Code § 58-3-510 et seq. ). The committee is also responsible for nominating one qualified candidate to the governor for executive director of the PUC staff and setting the director's salary.

There are no qualification requirements for members of the Vermont Public Service Board. But, under Vt. Rev. Stats. Sec. 30. 3, a public announcement must be made whenever there is a vacancy on the board. The governor must submit at least five potential nominees to the Judicial Nominating Board for review, although the nominees do not have to be attorneys. (In Vermont, as in Connecticut, rate cases and other major decisions are made in a quasi-judicial process. ) The judicial nominating board must review the candidates in respect to judicial criteria and standards only and recommend to the governor those candidates it considers qualified. The governor must make the appointment from the list of qualified candidates.

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