“You can get with this, or you can get with that.” – from “The Choice is Yours (Revisited)” by hip hop group Black Sheep
The Alabama Legislature’s effort to overhaul the state’s Public Service Commission is one of the more unusual and winding legislative journeys in recent memory.
Only a few weeks ago, the Legislature attempted to set up an appointment process for the three PSC commissioner positions. It would have replaced the current process where voters elect all three commissioners.
Given how little voters understand about the process for setting utility rates – and I include myself in this group – I supported the idea.
However, it soon became clear that some members from both political parties had reservations about the plan as well as the speed with which legislative leadership was trying to push the plan through, so it eventually failed.
Legislators regrouped and introduced two new PSC bills, one in the House of Representatives and one in the Senate. This ended up being less of a coordinated effort as the bills are distinct from one another.
The House bill would require a rate case hearing open to the public at least every three years for each utility regulated by the PSC. These hearings have not been required for decades.
It also creates an impeachment process for commissioners, restricts the categories of costs utilities can use to calculate the rates they charge to customers, and limits what electricity-providing utilities can charge based on the average profit margins of utilities in states bordering Alabama.
While that last part is getting close to government overreach territory, the House bill does a good job of trying to address much of what is problematic about how the PSC operates.
The new Senate bill, which passed out of the Senate unanimously last Thursday, goes much further. The Senate bill would remake the PSC from a three-person commission into a seven-person commission.
Additionally, each of Alabama’s seven U.S. congressional districts would elect one commissioner to serve instead of commissioners being elected statewide. The terms of commissioners would also increase from four years to six.
Furthermore, the Senate bill creates a new position called the secretary of energy who will be appointed by and will serve under the governor. This secretary of energy, solely, will oversee all personnel and administrative duties of the PSC.
My nuanced and detailed analysis of the Senate’s legislation is this is a dumpster fire of a bill.
Let me count the ways.
First, I always hear how Alabama wants small, limited government. This bill more than doubles the number of commissioners on the PSC in addition to adding a brand-new cabinet-level position in the executive branch.
Second, perhaps the main problem of the earlier bill that failed was it took power away from voters. This does something similar. In our current system, all voters are involved in electing all three PSC commissioners. In this bill each voter only has influence over one-seventh of the Commission.
Third, the secretary of energy’s salary will be determined by the governor without any limitations in place under the state’s established employee salary schedule.
Fourth, this bases the number of commissioners on the number of U.S. House members serving Alabama. This is no problem right now with Alabama having seven House seats. Yet, the number of House members is based on population.
Whenever Alabama gains or loses a House seat in the future, and it assuredly will, it will create a PSC with an even number of commissioners, increasing the likelihood of tie votes.
Fifth, and most egregious, this would create a commission that has little power over the agency it regulates. If the governor appoints the secretary of energy, what power does the PSC have if that secretary is doing a poor job?
It would be like if you served on your county commission, and you had to go ask someone like the superintendent of education or the district judge to fire the county administrator for unsatisfactory performance.
If the district judge hired the county administrator, how likely would he or she be to fire the county administrator?
Similarly, if you need to hire a new county administrator, how much would the superintendent of education value the opinions of the commissioners about whom to hire? Maybe some or maybe not much at all.
The Senate bill only invites animosity between the PSC and a secretary of energy since neither has to answer to the other in a meaningful way.
Ideally, the last surprise twist connected to this legislation will be the Legislature completely forgets the Senate bill exists.

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