Conferees agree on expenses bill

A bill regarding a public utility’s ability to recover certain business expenses from ratepayers was approved May 5 by a conference committee.

Sponsored by Rep. Debra Hilstrom (DFL-Brooklyn Center) and Sen. Ellen Anderson (DFL-St. Paul), the report on HF2798/ SF2519* awaits approval from the House and Senate. The bill would put in statute what the Public Utilities Commission is already doing in practice — prohibiting a utility from using operating expenses for reimbursement for travel, entertainment and related expenses that it deems is unreasonable and unnecessary for utility service. Among the nine items that utilities would have to itemize when submitting a general rate case petition are expenses for travel and lodging, food and beverage, recreation, gifts and lobbying.

On the House floor, Rep. Andrew Falk (DFL-Murdock) successfully offered an amendment that would have prohibited recovery of expenses that a utility would incur to promote or defeat a candidate or ballot question. The provision would not have applied to a ballot question that resulted in higher utility rates if voters passed the ballot question.

According to PUC Deputy Commissioner Bill Glahn, Gov. Tim Pawlenty said the provision had not been properly vetted and that the language belonged in an elections bill. Concerned that the governor would not sign the bill, the conference committee elected to remove the Falk amendment. Hilstrom said there are election bills still moving through the legislative process where the Falk amendment may be attached.

Debate continued about how far the policy could or should be enforced. For example, if a utility were to sponsor a nonpartisan legislative forum or employee voter registration event with coffee and donuts, should the employee’s time or costs associated with such events be reimbursed through ratepayer or stockholder revenues? Glahn said there are “gray areas” and that the amendment would have a “chilling effect” on utilities that would “shy away” from such activities.