How to Talk to Regulators

Deck: 

Why some proceedings blow up, while others reach consensus.

Fortnightly Magazine - May 2015
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Duke Energy Commercial Portfolio President Marc Manly said it well, recalling how Duke helped broker a ground-breaking regulatory agreement on solar energy policy: "I would point to what we managed to do in South Carolina," Manly said. "We showed we can work with all stakeholders, including some very difficult people, and with some head-knocking, work out legislation and regulatory rules."

But in other states, as Manly notes, the net metering debate has sometimes proved "caustic" and "antagonistic," making it nearly impossible to reach consensus. "Emotions have run wild," he says. "Name-calling has occurred and pretty extreme positions got staked out."

What makes the difference in outcomes?

The Utility Advantage

Most commission proceedings begin with the utility stating its case. This initiative tends to give the utility an advantage - a "presence," if you will, according to the attorneys, regulators, public advocates, and stakeholders who agreed to speak on the record about their experiences in participating in utility regulatory proceedings.

"Utilities' profits and losses are associated with sales and revenues but really they are determined by the relationship they have with their regulators, says Paul Kaufman, attorney with Chadbourne and Parke.

"That's why they stay focused on commission relationships."

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