Presenting a Model for Utility Oversight
Posted on August 21, 2014 by Janice Thompson
Tags, Outreach and Events, Portland Water, Sewer and Wastewater, Public Involvement and Coalitions
The Portland Utility Oversight Blue Ribbon Commission met this week for the third time. The Commission heard good news about the bond or credit ratings of the Portland Water Bureau and Bureau of Environmental Services. The City of Portland sells bonds to build big projects, and a good rating means a lower interest rate which saves ratepayers money. A big chunk of your water and wastewater utility bill, however, still goes toward paying off debt. This is why careful review of the timing and scope of new capital improvement projects is very important.
A presentation by CUB’s Janice Thompson at this week’s Blue Ribbon Commission meeting highlighted the need for oversight of capital improvement planning and careful monitoring of big construction projects after they get underway. The CUB presentation outlined what we called a triangle model for effective utility oversight (pictured above).
At the top of the triangle is the decision making body, which in Portland is the City Council. Utilities with different decision making structures statistically have both high and low rates, indicating that there is no ideal leadership structure. There will be more discussion of this topic at the next Blue Ribbon Commission meeting, but this week CUB emphasized the need to address the two bottom corners of the effective oversight triangle.
CUB has ably filled the independent advocate and analyst role in the oversight triangle for 30 years regarding regulation of Oregon’s private utilities. And we are now filling that role for Portland’s public utilities as well.
The Portland City Budget office does provide analysis to the City Council, but analytical back up is not provided to the city’s advisory group, the Public Utility Review Board (PURB). It is a great idea to involve advisory groups in the utility oversight process, but as CUB pointed out, they need technical support. Another concern identified by CUB is that the PURB and the utility agency’s budget advisory committees are not providing input on overall policies and management decisions, including those related to major construction projects. After all, it is these decisions that drive budgets and rate setting, so it follows that when making such big decisions it is particularly important to seek comprehensive public input.
The next meeting is on Thursday August 28th, 7:30-9:30am in the 2nd floor Lovejoy Room at City Hall, and is open to the public. This meeting will will focus on options for reforming the decision making process for Portland’s public utilities. Send your suggestions to Janice Thompson on that topic at .(JavaScript must be enabled to view this email address), or call 503-227-1984 x24.
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04/14/17 | 0 Comments | Presenting a Model for Utility Oversight