Insider Blog

John Atkins is running for Northwest Louisiana Public Service Commissioner.

Read his full questionnaire below.

Question 1

What are your top three priorities for the Public Service Commission, and how would those priorities specifically benefit residents, businesses, and communities in Northwest Louisiana?

My top three priorities are:
1) Address the ever-increasing cost of residential electric power by more aggressively monitoring the addition of new infrastructure by the regulated utilities. I would like to explore the use of Private Use Electrical Networks (PUENs), which will allow the industry to add additional generation capacity while not increasing the size of the rate base.

2) Manage the increase in residential water costs by some water systems by more closely scrutinizing the price paid when purchasing rival systems. A “prudence review” should be applied to all water system acquisitions to ensure that rate payers are not funding the overly aggressive growth ambitions of some system operators.

3) Require natural gas distribution companies to install systems and processes to proactively identify erroneous bills BEFORE they are distributed to customers. Monthly bills that are 30% higher than the previous month should automatically be tagged by the billing system for review before being mailed to customers.

Question 2

The Public Service Commission plays a significant role in determining whether utility rates are fair and reasonable. How would you balance the need to keep utility costs affordable for consumers and businesses with the need for utilities to maintain reliable systems and make necessary infrastructure investments?

Regulated utilities generate revenue by charging a regulated rate of return on the cost of existing infrastructure. For this reason, regulated utilities are incentivized to pay a high price for new capital investment. I would insist that all new capital investments in generation, transmission and distribution be required to go through a “prudence review” to ensure that all new infrastructure investments are both necessary and reasonably priced. As part of this review, the PSC must ensure that the approach proposed by the regulated utility is the most efficient and cost-effective means of delivering the required service to the customer.

Question 3

Northwest Louisiana businesses and residents depend on reliable electric, natural gas, telecommunications, and other regulated utility services. What policies or investments would you support to improve system reliability, resilience, and recovery following severe weather or other disruptions?

Of all of the regulated utilities, the electrical system is most vulnerable to large weather events. For this reason, I would require that the operators of the electrical grid be required to invest more proactively in Vegetation Management and Automated Lateral Switches (ALS). Vegetation Management Programs proactively trim tree limbs and other foliage that are in a position to damage transmission and distribution lines during a storm. Proactively managing these problems through a well-planned and well-executed Vegetation Management Program is much less expensive than making emergency repairs during or immediately following a storm.

I would also encourage electric utilities to consider increasing their use of Automated Lateral Switches (i.e., ALS). These devices automatically detect faults in the system, immediately isolate the affected areas, and automatically restore service to customers not on the faulted section of the system.

In addition, when large storms are in the forecast, I would require electric utilities to proactively position additional repair crews in the at-risk areas to ensure that crews are on hand to make any necessary repairs as quickly as possible.

 

Question 4

Energy and utility costs can influence whether companies locate, expand, or invest in Louisiana. How would you use your role on the Public Service Commission to support economic development and help Northwest Louisiana remain competitive for new and expanding businesses?

While I want to see new employers move to Louisiana, I am concerned about the pressure that these new investments will place on the balance sheet of the regulated utilities. I am also concerned about the ability of the regulated utilities to execute all of the proposed projects in a timely way. For these reasons, I am supportive of allowing some NEW large industrial customers to utilize Private Use Electric Networks (PUENs). PUENs would allow large customers to build private power plants adjacent to large power consumers. These private systems will (a) reduce stress on the balance sheets of regulated utilities, (b) decrease the growth of the regulated utility rate base, and thus protect the consumer from additional rate increases, (c) take project risk out of the regulated system, and (d) decrease the need to take private property through the use of eminent domain rules.

 

Question 5

Louisiana's energy needs are changing as industrial development, technology, data centers, manufacturing, and
population trends affect electricity demand. What approach should the Public Service Commission take to ensure
Louisiana has sufficient, reliable, and competitively priced energy to meet future demand?

When large new demand centers (i.e., data centers, refineries, large manufacturing plants, etc.) are requesting access to the grid, then integrated resource plans (IRP) should be required to understand the impact that this new demand will have on the system and develop a plan for meeting this new demand through constructing new generation facilities or purchasing the required additional power from outside of the system. This Integrated Resource Plan should consider the entire portfolio of supply and demand resources rather than evaluating requested power plants or transmission lines in isolation. A properly-conducted IRP will identify the best means of meeting the new demand by examining the system as a whole rather than considering new investments in generation or transmission in isolation. The goal should always be to minimize the cost of meeting the demand for new power while simultaneously maximizing the reliability of the system.

Private Use Electric Networks (PUENs) could also help to protect consumers against additional increases in electricity costs while reducing risks to grid reliability.

 

Question 6

Major utility infrastructure projects can require significant capital investment. What criteria should the Commission use when deciding whether an infrastructure project is necessary, who should bear the cost, and over what period those costs should be recovered from customers?

New large consumers of power should bear the full cost of their new power demands. If the new customer will be connected to the grid, then the length of their Power Purchase Agreements should be correlated to the full depreciation schedule of any new generation or transmission that is being built to supply the new demand. In this way, the new customer will be required to pay for the new generation or transmission built to meet their demand, and these costs will not be passed along to other customers utilizing the larger grid.

 

Question 7

What specific steps would you take to promote transparency, accountability, and public confidence in Public Service Commission decisions, including rate cases, utility expenditures, contracts, and interactions with regulated industries?

The Public Service Commission should always strive to maximize transparency, communication and accountability. The business of the Public Service Commission should, whenever possible, be conducted in public forums. While some competitive aspects of a transaction may be considered confidential, the Public Service Commission should make every effort possible to share as much information as possible to ensure a well-informed public. In addition, the Public Service Commission must continue to make use of its website and other forms of social media to proactively educate the public on the issues facing the organization. Lastly, individual PSC Commissioners should schedule regular town hall meetings around their districts to update the citizens on relevant developments and to listen to the concerns of the citizens.

 

 

Question 8

The 4th Congressional District includes communities with diverse economic conditions, industries, and local priorities. How would you ensure that communities throughout the district have meaningful access to you and your congressional office? How would you determine which regional priorities deserve federal advocacy, and what measurable results should voters use to evaluate your effectiveness at the end of your first term?

When large new customers are requesting access to the grid, the Public Service Commission should have a series of public meetings to gather input from all concerned parties to better understand their concerns and to develop plans to mitigate those concerns. The Public Service Commission has a duty to optimize the positive impacts of any new generation or transmission assets while minimizing the negative impact on those adversely affected by the proposed new investment. The Public Service Commission should always aspire to maximize the positive outcomes while minimizing the negative impacts.