As a candidate for Public Service Commission (PSC), one question I hear a lot is, “What does the Public Service Commission actually do?” As a primer, I am going to briefly explain how the PSC was created, how it is governed, and the minimum duties of the PSC.

Regulation of public utilities in Montana has evolved from the original 3-member Board of Railroad Commissioners created by the Legislature in 1907 to the present day 5-member Public Service Commission which now has expanded oversight.  Though the PSC was chartered by the legislature, it is a stand-alone agency with self-governing authority. In fact, if the legislature wanted to enact a policy on the PSC, they would have to pass a law to do so.

The only other authority the legislature has over the PSC is within the Legislative Consumer Commission, which is made up of state lawmakers that can investigate PSC-related issues.

To understand the PSC’s minimum duties, we can turn to Montana Code Annotated (MCA), Title 69, Public Utilities and Carriers, which lays out all the rules for the PSC. Per MCA,

A public service commission is hereby created, whose duty it is to supervise and regulate the operations of public utilities, common carriers, railroads, and other regulated industries listed in this title.

MCA 69-1-102

The commission may adopt rules to govern its proceedings and to regulate the mode and manner of all investigations and hearings.

MCA 69-1-110.3

The Montana PSC is a member of the National Association of Regulatory Utility Commissioners (NARUC). NARUC’s statement regarding the mission of public utility commissions also provides additional understanding on the role of the PSC: “The mission is to serve the public interest by improving the quality, safety, and effectiveness of public utilities. They have an obligation to ensure the establishment and maintenance of utility services as may be required by law and to ensure that such services are provided at rates and conditions that are fair, reasonable, and nondiscriminatory for all consumers.”

Revenue Generation

One of the largest powers of the PSC is its ability to issue bonds. The commission can issue state bonds (with the guarantee of repayment from the ratepayers) to purchase, build, extend or maintain a plant. With respect to electricity, this includes energy generation facilities, transmission lines, stations, and distribution lines. The PSC also limits the rate that utilities may charge consumers. (See MCA 69-3-501).

Plant and Operational Safety

Overseeing the safety of a utility plant is also a significant role of the PSC. Plant safety is vitally important for both the workers and the public. Any major accident or death that occurs must be investigated by the commission. (See MCA 69-3-107).

Standards and Metering

The PSC is required to inspect and enforce all construction to be certain that plants are built to National Electricity Safety Code (NESC) standards. This covers both overhead and underground utility lines. (See MCA 69-4-201).

The PSC is further required to make sure meters read correctly and that electricity voltages, water purity and pressures to the meter, natural gas pressures, etc. are within proper and safe limitations. (See MCA 69-3-108).

Territories and Transportation

Territories (the specified areas regulated companies may service) are defined by the PSC. (See MCA  69-5-112). The PSC regulates all motor carriers for hire. They can hire state law enforcement to inspect, fine and even arrest carriers. This includes railroad, buses, cargo transportation, trash trucks, taxi’s, Uber’s, etc. (See MCA 69-12-201).

The PSC regulates pipelines that carry coal products, oil products or carbon dioxide. PSC will inspect for safety and control the rates for transportation. (See MCA 69-13-1).

The PSC also oversees railroads within the state: safety, construction of tracks, conditions of railway cars, silos next to tracks, drainage, tracks crossing roadways, and even the conduct of engineers while crossing through Montana. (See MCA 69-14-1).

Federal Control

The state of Montana previously disbanded the Montana Power Authority, which owned and controlled the power plants and transmission lines in Montana (that is a whole other article in itself). Now, the control of the disbursement of power and availability is under federal jurisdiction. The utilities themselves own the power plants, but the regulation of transmission lines and plants are outside of Montana’s control.

As a candidate for PSC and a former utility worker, I feel disbanding the MPA was a huge mistake. Montana is best served by controlling its own grid. Federal control of Montana’s grid is divided down the middle of the state. Montana’s energy distribution is now controlled by the North American Electric Reliability Corporation (NERC) and the Federal Energy Regulation Commission (FERC), both of which are Federal entities.

As you can see, the PSC has many responsibilities, including financial and regulatory duties. But most importantly to understand, Montana’s utilities are life sustaining. We cannot afford to make mistakes and allow our state utilities to be damaged or become unattainable, resulting in no lights, no heat, no water, and no distribution of goods. Electricity, water, natural gas, railroad, and trucking are absolutely necessary to life in Montana, and the PSC holds an essential and vital role in supporting life in Montana.

Further, the role of PSC Commissioner is not a “walk in position” whereby one continues on with the “routine” of the office. There is no routine, just very serious issues with grave consequences facing our state right now. This is not an overstatement. Our people, our state, and the Public Service Commission should DEMAND that anyone running for this position must have a minimum of 10 years experience in the industry. That is the only way you can be confident that the quality and quantity of our resources will be available to us in a safe and secure environment for today and for generations to come. That is how important this position is.