By: Emily Apadula, Policy Analyst
The Public Utility Commission (PUC), the Public Service Commission (PSC), the Utility Regulatory Commission - while the name may vary, these regulatory bodies exist in every state and are tasked with the regulation of utilities (this post will focus on electric utilities, however, PUCs may also regulate gas, telecommunications, and water utilities as well). As a general rule, commissions assure that utilities provide adequate and efficient service to customers at reasonable prices. This regulation often includes price regulation, resource planning and acquisition, and reliability and quality of service regulation. In layman's terms, PUCs hold major power and can make decisions impacting the cost of electricity, sources of energy production, and whether new energy facilities are approved.
While the basic functions of the commissions are the same, authority and purview vary widely across states. Commissions derive their authority from individual state statutes, which vary according to not just how it was written, but how it has been interpreted. This authority can include directives by the legislature to advance state energy policy goals; impact the energy economic, environmental, and/or social outcomes within the state; or make energy decisions using specific criteria. In recent years, several state legislatures have given their PUCs additional powers concerning the transition away from fossil fuel driven energy. In Maine, the legislature directed the commission to support greenhouse gas emission reductions as part of its primary mission, while in Colorado, the commission was directed to identify disproportionately impacted communities and adopt rules to improve equity, minimize impacts, and prioritize decarbonization benefits.
Utilities Commissioner Selection Method by State (Nov. 2024)
There are 207 commissioner positions across the country with terms ranging from four to six years. Currently, there are 6 commissioner vacancies, with an additional 61 commissioner terms concluding by the end of 2025. Commissions are staffed with between three and seven commissioners, whose qualification requirements are dependent on the state. In Alaska, commissioners must be “in good standing of the Alaska Bar Association or have a degree from an accredited college or university with a major in engineering, finance, economics, accounting, business administration, or public administration. Actual experience for a period of five years in the practice of law or in the field of engineering, finance, economics, accounting, business administration, or public administration is equivalent to a degree.” Meanwhile in New Jersey, there are no explicit requirements mentioned in the statutes. In most states (36), Commissioners are appointed by the governor, in other states they are appointed by the state legislature (2), elected at-large (5), or elected by district (5). In Tennessee and North Carolina, some commissioners are appointed by the governor, while others are appointed by members of the state legislature. In the District of Columbia, commissioners are appointed by the mayor.
Information gathered from PUC websites, new articles, Ballotpedia, and publicly available state voter registration information.
With the majority of states selecting their commissioners by governor appointment, it would be easy to assume that those commissions would be staffed with all members of the same political party. However, nineteen states have made it illegal for more than half of the commission to be members of the same party, e.g. three out of a five member commission or four out of a seven member commission. In fact, there are only thirteen commissions nationwide in which all members are of the same political party, of which over half are states in which commissioners are elected.
Most of the time, PUCs fly under the radar of the popular consciousness and rarely make the headlines. Recently however, the commissions in two states have been thrust into the spotlight. In 2023, S.B. 512 was enacted in North Carolina. Among other issues, this bill impacted the commission in two ways. Firstly, the bill cut the number of commission members from seven to five. The reduction in commission members is scheduled to take place in June 2025, when three of the current members’ terms are set to expire.
Secondly, S.B. 512 shifted some of the commissioner appointment responsibility away from the governor. Previously, the governor, with approval by the legislature, was in charge of all seven commissioner appointments. With the passage of this bill the appointment power was split between the governor and the general assembly; the governor appoints three members and the general assembly appoints the remaining two. While the commissioner number provision was delayed slightly, this provision took effect immediately, with the General Assembly appointing two new members to replace those whose terms expired shortly before the passage of the bill. Additional changes may be adopted soon as well, with the passage of S.B. 382, which would reduce the number of gubernatorial appointments to two, granting the third appointment power to the state treasurer.
The Georgia PSC has been under scrutiny since 2022, when a lawsuit was filed by civil rights and environmental activists over how the five commissioners are elected. In Georgia, commissioner candidates must live in specific districts, but are elected through a statewide vote. The lawsuit claimed that because commissioners are chosen by a statewide vote, they do not represent the people in their local district and therefore violate the Voting Rights Act. The PUC elections have been on hold since 2022 while this lawsuit made its way through the courts. Recently, the U.S. Supreme Court has declined to take the case, meaning the system will stay in place as-is.
However, that is not the extent of the concern, and new lawsuits were filed after the passage of H.B. 1312 in April 2024. The bill delays the election of all commissioners by at least one year, and most by two. Under the new law, the election for two of the commissioner seats would occur in 2025, with the remaining three seats elected on a staggered schedule. The new election schedule would extend most of the commissioners’ terms by at least two years beyond their allocated six-year term. This is the crux of the lawsuit, as advocacy groups claim lawmakers in the state have illegally extended the commissioners’ terms through the new election schedule. There has not been a PSC election in Georgia since 2020.
Since the creation of the first utility commission in Wisconsin in 1907, commissioners have been tasked with making critical decisions that impact everyday life. Although commission authority may vary from state to state, commissioners hold major power when it comes to energy regulation. And as more and more states begin enacting net-zero carbon emissions goals, considering how to meet growing electricity demand, and evolving energy regulation to meet new customer priorities, the role commissioners play will only continue to increase in importance.