Ethics and Public Participation

Utility regulation affects the cost, quality, and availability of electricity, natural gas, water, and telecommunications. Vigorous oversight is essential to protecting consumer interests. However, hidden special interests can undermine effective regulation and oversight, ultimately compromising the integrity of the policy process. Criminal investigations of utilities, legislators, and regulators in several states have documented the harmful influence of special interests in seeking and obtaining regulatory decisions in their favor.

Even when special interests do not have undue influence over regulators, oversight may favor utilities and large businesses. Sometimes, regulators make decisions without meaningful consumer input. Concerned citizens, consumer groups, and small businesses may lack the resources, expertise, or time to participate fully. Some states have taken steps to expand public participation in the decision-making processes. They have attempted to make consumer input procedures less complex and costly.

For example, some states have established programs to assist consumer groups with the costs of attorneys and experts in contested proceedings. These are known as intervenor-funding programs. Generally, funding is only available for organizations that make a substantial contribution to the proceeding. Recipients must also demonstrate that participation without financial assistance would cause a significant financial hardship. Most states also have a consumer utility advocate office (see also Consumer Advocate Offices).