4 A s: Autonomy, Authority, Accountability, and Ability of the Regulatory Agency

Transcription

1 4 A s: Autonomy, Authority, Accountability, and Ability of the Regulatory Agency Chairman Charles E. Box Illinois Commerce Commission December 11,

2 4 A s Autonomy from short term political and other interventions; Authority to establish sound regulatory practices; Accountability to assure transparency and credibility; Ability to carry out the regulatory functions. 2

3 Three Branches Of Government 3

4 Regulatory Agency Authority Created by the Legislature Part of the Executive Branch Subject to Judicial Review 4

5 Legislature General Assembly Passes laws governing utility organization, business conduct, land condemnation, etc. Establishes overall public policies on market structure, environmental standards, etc. Empowers regulatory agencies to implement these laws and provides budgetary funding. Confirms the Executive branch appointments of Commissioners. 5

6 Executive Governor Signs regulatory laws passed by the legislature. Appoints Commissioners. Participates in regulatory proceedings through the Attorney General. 6

7 Judiciary Hears appeals of decisions made by the regulatory agency provides a check on the process. Hears challenges to and interprets laws passed by the legislature and signed by the governor. 7

8 Regulatory Agency Autonomy Allows the agency the freedom to render decisions based on: The law and policy established by the legislature, Regulatory and ratemaking policy established by the agency, An impartial reading of the facts of each case, free from prevailing political whims. Can be difficult in practice! 8

9 Structure Provides Autonomy Commissioners are provided reasonable protection to allow economic decision making and consideration of social issues. Autonomy is desirable to put some distance between the regulator and government, utility companies and the public. 9

10 Appointment of Commissioners 5 year, staggered terms to provide for change and continuity. President/Governor chooses Commissioners; Senate confirms choice. Based on expertise, background, and ability. Only be removed for cause. Political diversity. 10

11 Autonomy Aspects Commissioner salary set by law. Commission is funded by fees paid by regulated companies and fines paid by rules violators. Budget approved by the legislature. 11

12 Authority Set utility rates and terms of service Make rules Collect utility taxes and assessments Issue licenses and certificates Gather data Monitor utility activities and enforce rules Adjudicate disputes 12

13 Regulatory Agency Authority Legislative Role Adopts rules implementing legislative priorities. Establishes public policies in those areas where the legislature is silent. Creates policies applicable in a nondiscriminatory basis to all parties. 13

14 Regulatory Agency Authority Executive Role Oversees industries ensuring the provision of safe, adequate, and reliable services at the lowest reasonable cost. Collects assessments on utility and transportation revenues. Enforces rules and orders. 14

15 Regulatory Agency Authority Judicial Role Conducts fact based proceedings on utility rate requests. Rules on disputes between utilities and customers. Hires Administrative Law Judges. 15

16 Accountability Public participation and transparency Appeal of decisions to courts Annual report and audit Budget review Code of ethics Removal from office 16

17 Public Participation and Appeal Regular Commission meetings always open to the public with very limited exceptions. Rate case proceedings completely open with no secret meetings or correspondence. All utility data and rate filings available for public scrutiny with very limited exceptions. All decisions and orders can be appealed to the courts 17

18 Due Process Preserves Fairness Agency procedures ensure all voices are heard. Rules governing rulemakings, rate cases, and disputes to ensure fairness. Restrictions on ex parte communications prevent undue influence and secret correspondence. Discovery allows all parties to evaluate the evidence and provides sufficient time to counter it in the proceedings. 18

19 Annual Reporting and Budgets Annual reports provided to governor and legislature on all the regulated industries and on various areas or concern Budgets scrutinized and approved by legislature and governor 19

20 Strict Ethical Code All Commissioners and employees are governed by strict code of ethics. Contact with parties to cases is restricted. Restrictions on employee investments and business dealings. Removal of office for violations and other malfeasance. 20

21 Ability Capable, trained staff Procedures and management Sound tariff methodologies Licensing practices Monitoring and enforcement 21

22 Executive Director Appointed by the Commissioners. Hires and supervises Commission staff. Oversees day to day operations of Staff. Serves as a liaison between Commission, General Assembly, and Governor. 22

23 Professional Staff Accountants, rate analysts, engineers, economists, lawyers, and people from other disciplines provide expert testimony in rate cases, general oversight of utilities, and advice on matters that come before the Commission. Individual staff develop expertise in particular industries, disciplines, or forums. 23

24 Illinois 24

25 Illinois Facts 12.9 mill. people, 5 th largest state. 56,400 square miles, 24 th largest state. Land of Lincoln Borders the Mississippi River and Lake Michigan. Springfield is the state capital. Chicago is the largest city, 2.9 mill. within city limits, 9 mil. metro area. 25

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27 Illinois Commerce Commission Transportation Towtruck Operators Moving Companies Railroad Crossings and Railway Safety

28 Illinois Commerce Commission Investor Owned Public Utilities Electricity Natural Gas Telecommunications Water and Wastewater 28