Wading in a swamp of utility regulation

Jim Clarkson
Posted 7/1/21

I was appointed to be on a Department of Energy advisory board consisting of about 20 state-level bureaucrats and one private sector person – me.

The advisory board’s mission was to give …

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Wading in a swamp of utility regulation

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I was appointed to be on a Department of Energy advisory board consisting of about 20 state-level bureaucrats and one private sector person – me.

The advisory board’s mission was to give advice on energy efficiency and renewable policies to a DOE assistant secretary.

I quickly found the swamp culture is not confined to Washington.

The other members of the board were appointed by governors, usually the state government energy manager, state consumer advocate or a public utility commissioner.

All sincerely believe there are no limits on government actions, as long as the goals are politically popular. This is a whole other world. I felt like I was on Mars.

After my first meeting I made a policy proposal to adopt and submit to the assistant secretary. The first sentence read: “The Department of Energy should not in any way encourage Utility EE (energy efficiency) programs, nor should any state agencies encourage utilities to have such programs.”

This was followed by a pithy but profound list of reasons for my recommendation.

I wasn’t surprised this proposal was overwhelmingly rejected. But the board further adopted a recommendation saying the exact opposite of my proposal.

The official recommendation was sent up the DOE hierarchy, so I sent my proposal as a dissent up the chain also.

I was told it was improper to file dissents.

Oh, well. Wading in the swamp.

THE BOARD meeting consisted mostly of presentations by other DOE departments in DOE. These folks are really good at Power Point. They all discussed how they “touched base” and “plugged in” with other groups in DOE and other federal agencies.

These people spend a lot of money. The board recommendations to these various groups was that they should publicize their programs better. The DOE presenters said they already had their program information on line for state level energy managers.

In a social gathering of DOE people and board members, a federal employee asked what I did and why I was on the board.

I tried to describe what I do, but she looked confused. I waved at the group and said: “I’m the only one here making an honest living.” That didn’t go over well.

I shouldn’t have said it. After over 50 years of observing state utility regulation, it still upsets me to see smart young people devoted to limiting freedom and prosperity when they could be doing something useful.

They are not really communists or socialists. They are just “governmentists”.

WHAT WAS a libertarian hostile to government intervention in the economy doing on a board that wants to expand government?

Good question. I was told the Trump transition team wanted new ideas on these boards of questionable value.

Energy efficiency programs are charged to customers which cost them money they could use for their own energy efficiency.

They are expensive due to high overhead costs and utility profits. Amory Lovins says they cost $6 to replace a $1.50 light bulb.

Utility EE programs crowd-out, stifle, preempt and discourage voluntary market developed energy efficiency measures.

Jim Clarkson is an energy advisor to businesses.

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