#1Ethical Considerations Presentation to ACERCA San Salvador, El Salvador Ted Boyer Chairman, Utah Public Service Commission March, 2011#2Utah PSC-What do we do? Regulate investor owned electric, natural gas and telecommunications companies • Ensure safe, reliable, adequate and reasonably priced utility services • Allow utility companies the opportunity to earn a reasonable return on investments Established 1917#3Utah Commissioners Appointed by Governor Confirmed by Senate 6-year staggered terms No more than two from same political party Removal for cause Governor selects the Chair#4The Importance of Appearance The regulatory process must be fair and impartial The regulatory process must appear fair and impartial The public and parties must have confidence in institutions Outcomes must be predictable#5Conflict of Interest Should not attempt to influence any decision or participate, even indirectly, in a decision that could result in direct financial gain to self, spouse, child or business Cannot participate if any relation is involved (including ex's) Cannot engage in business with the state Cannot hold financial interest in those you regulate (relatives as well) Cannot engage in outside employment inconsistent with performance of official duties#6Government Property and Procurement Cannot sell or rent property to state agency that employs you Bid process should be as independent as possible Bid process must be competitive#7Limits on Employment Prohibition on participating in cases you were involved in - "directly concerned or personally participated" After term ends, some reasonable time before you may appear before regulatory body - usually one year Upon leaving the Commission, some restriction on staff employment No outside work during work hours Conflict of interest rules should apply#8Use of Official Position May not use position to solicit employment for themselves or others Should not suggest, request or recommend directly or indirectly someone for employment at a utility or corporation you regulate#9Impartiality in Duties Conflict of Interest Rules Apply Procedure is important, must be lawful and fair Always err on the side of more process rather than less If a party wants a hearing, give it to them Unless clearly an attempt to derail the process#10Comportment of commissioners Treatment of attorneys Treatment of witnesses Treatment of litigants Treatment of court reporters Personal conduct#11Gifts and Travel Prohibition Accept and Disclose Prohibit from those you regulate Accept and disclose from non-regulated entities • **Be Careful of Public Perception of taking gifts from Industry Groups#12Ex Parte and Other Communications Avoid Ex Parte Contacts If inadvertent, disclose immediately • Parties are responsible and consequences are theirs Report other contacts to maintain transparency Any substantive extra record contact#13Gifts and Travel Utilities cannot offer gifts or subsidized travel Trade Associations and other nonregulated parties can offer travel subsidies • Any acceptance should be disclosed#14Public Perception of Process For the public to have confidence in the process, they must believe and perceive the process as fair and transparent.#15Keys to Public Perception Adhering to statutes, rules and regulations Providing coherent consistent messages which educate the public **Constantly battle perception that Commissioners are "in the pocket" of utilities#16Public Perception Written reports and orders that are clear and written in the least technical language possible Single message with allowable dissent Open Meetings and Records Policy Deal with press openly and honestly#17Open Meetings Most States have "Sunshine” Laws ( "Sunshine is the best disinfectant” – U.S. Supreme Court Justice Lewis Brandeis) Requires Notice of Meetings Usually 24 hours Requires public discussion from Regulatory Body If a quorum, must be open Allows private one on one discussion Requires open records#18Open Records · Allows inspection of records (anything official) Records include electronic communications Allows copying of records at reasonable cost Actual cost Some records closed by statute Personally identifiable information Proprietary information Should have retention policy Some records preserved forever 7 years standard time#19Press Strategy Most reporters do not have a technical background Most reporters like easy stories You do not have to answer their questions (but there are consequences) You do not have to answer their questions right away Ask for the questions in advance Take time to think Cultivate relationships with reporters and editorial boards Give information on background Give heads-up on stories Meet when nothing is going on#20Things to avoid Gifts from regulated companies Gifts to commissioner family members Travel paid for by regulated companies Investments in regulated companies Seeking employment from regulated companies Socializing with managers of regulated companies Ex parte conversations Secret meetings#21• Public Confidence is key to effective regulation. It avoids legislative and judicial interference and allows for positive outcomes. Regulators are responsible for public confidence.