Dear Editor,
After eight years in the trenches at the PSC – battling not only entrenched utility interests but also “Republican” commissioners who frequently lost sight of free market principles and sound economics – I developed a pretty keen sense of good VS bad energy policy, recognizing the need to eliminate monopolies whenever possible, while regulating monopolies on a market incentive basis when you can’t. Too often the commission and the legislature didn’t ‘get it.’
TWO BILLS are now before the House Energy & Technology Committee that relate directly to these essential goals, and are certain to have a major long-term impact on Montana consumers and the state’s economy. One is very good: HB 191. One is very bad: HB 284.
HB 191 eliminates totally unjustified state monopolies. Big Garbage is fighting furiously to preserve its cloak of government protection. They often bask in 30 to 40%, net profit by eliminating competition through the next-to-impossible requirement that any new garbage hauler first receive a “Certificate of Convenience and Necessity” (read: license) and stamp of approval by the government (PSC) before they can exercise their economic liberties as free Americans. Rep. Barker’s bill exposes the cynical nature of this law, that gives veto power to Big Garbage to keep all competitors out. HB 191 would repeal this statute and replace an over-priced, shamefully socialized industry with free markets and freedom. What an amazing idea!
HB 284 reinstates socialized utility practices and massive risk-shifting to ratepayers. The infamous ‘Preapproval Scam’ created by Montana Power’ deregulation’ is being resurrected in this terrible bill. Struck down once as unconstitutional, preapproval by the PSC of monopoly utility acquisitions and projects ties the hands of the PSC in determining the actual prudence of utility spending, and provides these utilities with a blank check – virtually guaranteeing that consumers will pay much more for their power. For the coddled monopolies, the incentive shifts from cost efficiency and spending less, to perverse profit-inflating by spending more! Preapproval gifts them with unearned profits by socializing their risk. HB 284 must be defeated (or amended to allow PSC review, not preapproval.)
As usual, both bill hearings were totally dominated by the special interests, with almost no consumers able to attend. (Probably 30 monopolized trash companies jammed the committee room, for example.) House Energy Committee will be taking action on these two bills right away. Please email or call (406-444-4800) all committee members and urge a “YES” on HB 191 and a “NO” on HB 284.
Roger Koopman,
former Public Service
Commission member,
Bozeman
