CUB Urges Senate to Confirm Ron Binz for FERC Chair
Posted on September 16, 2013 by Bob Jenks
Tags, Legislative & Political
This week, the US Senate Energy Committee on Energy and Natural Resources will begin consideration of Ron Binz’s appointment to be Chair of the Federal Energy Regulatory Commission (FERC).
I first met Ron Binz in 1991 and I believe he is an inspired choice to be the Chair of FERC. In those days Ron was the Director of the Colorado Office of Consumer Counsel, and was the President of the National Association of State Utility Consumer Advocates. I, on the other hand, was just starting at CUB. While I had been involved in public policy issues and had lobbied the legislature, I had little experience with the Public Utility Commission and the world of utility rate cases and integrated resource planning. Ron was one of the people who helped me learn my job.
Ron is smart – he is a former math professor. He knows energy and telecommunications regulation as well as anyone. And he is always willing to provide me the advice I need. At that time in Oregon, the share of utility costs that were born by residential customers was greater than nearly every other state. Ron helped me understand marginal cost versus embedded cost allocation - the principles involved in cost allocation - and gave me advice on how to raise the issue within a rate case.
Ron is also a good role model for how to achieve success within the regulatory process. Ron is a genuinely nice man with a great sense of humor. While the regulatory process can be contentious, Ron shows that building and maintaining good relationships and approaching issues through collaboration rather than confrontation are the building blocks of success.
In January 2007, Ron was appointed Chair of the Colorado Public Utilities Commission, where he led the Commission to develop new stronger requirements for energy efficiency and required that future carbon regulation be considered when making long term resource decisions. The energy efficiency requirements will lower customer bills, as energy efficiency is the most cost effective resource. The planning requirements are critical to ensuring that customers do not have to pay for investments in resources that will later be shut down due to future climate regulation.
Colorado consumers have saved millions of dollars due to Ron’s work. Oregon consumers also benefited from the sound advice that Ron provided to me. Ron was a great regulator at the Colorado Public Utilities Commission where he worked to make sure utilities were making wise investments, and were rewarded for those investments.
Ron is exactly what FERC needs. FERC spends much of its time refereeing fights between powerful special interests. That work is really important. Behind the electricity that comes into your and my houses is a great deal of wholesale market activity regulated by FERC. In July, FERC issued an order concluding that Barclays manipulated West Coast electricity markets, and must pay a $435 million civil penalty to the US Treasury and refund $34.9 million in “unjust profits” to the poorest households in California, Arizona, Oregon and Washington. Ron would continue this great work.
It is critical that as FERC fulfills its role in regulating wholesale markets that it remembers that it is customers who pay the bills. Consistently throughout his career, and for every one of the more than 20 years that I have known him, Ron has looked out for utility customers. There is no one who is more suited to become Chair of FERC.
The United States Senate should confirm Ron.
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04/04/17 | 0 Comments | CUB Urges Senate to Confirm Ron Binz for FERC Chair