Disconnect HB320, again

First, a little background: On the last day of the 2000 General Session of the Utah Legislature, lawmakers passed a controversial reform bill that would have diminished the consumer voice in utility-rate cases being considered by the Public Service Commission.

In the 2001 session — after Gov. Mike Leavitt threatened to call a special session to deal with the issue and a legislative task force failed to reach agreement on another approach — lawmakers voted to repeal the bill, which had not yet gone into effect. Critics said the repeal validated their contention that HB320 was poor public policy and potentially harmful to consumers. They also decried Questar Corp. attorneys' involvement in drafting the legislation. Backers of HB320 charged that critics and a "willing news media" had unfairly linked the legislation to higher gas and electricity bills, Questar Corp.'s rising stock prices, and troubles other states have faced with electrical deregulation. The sponsor, Rep. David Ure, R-Kamas, later said he would not be the point man for future regulatory reform legislation.

Four years later, the issue has new life. HB320, sponsored by Rep. James R. Gowans, D-Tooele, has been introduced in the House with less than two weeks to go in the session. The 40-page bill would eliminate the Division of Public Utilities and the Committee of Consumer Services, replacing them with an Office of Ratepayer Advocate under the attorney general.

As we observed in 2001, there is no overwhelming evidence that the existing process needs to be changed. Utah utility regulators have maintained the delicate balance of holding utility rates low and ensuring the financial health of various providers. The Committee of Consumer Services has dutifully defended the interests of homeowners and small businesses in rate-increase proposals. Meanwhile, the Division of Public Utilities has done a fine job as the hands-on utilities watchdog. It investigates consumer complaints and monitors utility providers to ensure they comply with PSC regulations and orders. The division also makes policy recommendations to the PSC and conducts audits. The committee and the division perform vital roles in Utah's utility regulation process.

Would the Office of Ratepayer Advocate give consumers a similar degree of protection? It's unclear.

Until there is convincing evidence that supports reconstituting the current system, there's no point in going down this road again.