December 06, 2007

Blunt needs to clean house at PSC

The Missouri Public Service Commission's (PSC) Mission Statement states that it will:

  • ensure that Missourians receive safe and reliable utility services at just, reasonable and affordable rates;
  • support economic development through either traditional rate of return regulation or competition, as required by law;
  • establish standards so that competition will maintain or improve the quality of services provided to Missourians;
  • provide the public the information they need to make educated utility choices;
  • provide an efficient regulatory process that is responsive to all parties, and perform our duties ethically and professionally.

Cases filed before the PSC are decided by 5 commissioners who are appointed by the Governor. The commissioners, who are supposed to be fair and impartial, preside over hearings which are conducted much like a trial. The Office of the Public Counsel represents the interests of the general public in the hearing and other interested parties are allowed to intervene.

The PSC is currently considering a purchase of Aquila Inc by Great Plains Energy Inc. for 1.7 billion. Critics contend the purchase could cost Aquila's electric customers up to 400 million over the next 5 years. After the hearing is conducted the commissioners will decide whether to approve the sale.

During the hearing an email was made public from Richard Green, Aquila’s chief executive officer, to the company’s board. The email claimed that Jeff Davis, chairman of the Missouri Public Service Commission, was willing “to move quickly to get the transaction approved.” Green also wrote that “In a nutshell, Chairman Davis indicated his support for the transaction and wants to get it across the line as quickly as possible.” Green initially said the email was correct but has since changed his story and now claims he meant that Davis offered to pursue the case in a manner that would proceed in “a forthright way.” Davis claims he told Green the case would be decided on the facts and he would not prejudge the matter.

However, Davis did not deny meeting with Green before the case was even filed with the PSC and Davis has announced he is recusing himself from the case. However, Public Counsel Lewis Mills is asking that the case be dismissed in that 4 of the 5 commissioners met privately with Aquila.

Mr. Davis, who is a lawyer, clearly knew that any meeting with a company that would be coming before him was improper no matter what was said. Therefore, removing him and any other members of the commission who met with Aquila should just be a start. Any members who met with Aquila should be removed from the commission immediately and an investigation conducted as to whether this has happened in the past. The state also needs to seek sanctions against these individuals for a clear violation of there ethical obligations including criminal charges if warranted.

This type of behaviour is why the public has such a lack of trust in public officials. Removing them from this case is simply not sufficient nor will the typical response of a "resignation" suffice. It is time we start holding our public officials accountable. Anything less is a victory for the unethical and corrupt people who have turned public service into personal gain.

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