Energy industry experts want to do away with the Public Service Commission.
“Utility regulators do not protect customers,” said Jim Clarkson, President of Resource Supply Management and an advisor to corporations and businesses on controlling energy costs.
“Utility regulators protect the utilities,” he said.
Clarkson is not alone.
Sen. Tom Davis, R-Beaufort, has called for deregulation and competition to drive down power costs.
“The way we have our energy sector set up, companies are encouraged to pursue capital-intensive projects because ratepayers pay a large percentage of whatever capital they put in the ground. So the more they spend, the more you pay.”
“Let independent power producers go out there and compete,” Davis said.
Tom Clements, who intervened in the PSC hearing for Friends of the Earth, said, “The PSC was in place to serve the interest of the utility. While some form of strong regulatory body is needed, as long as PSC members are appointed by the legislature the bias will be towards the utilities and counter to the ratepayers.”
Clarkson has said utilities would build pyramids if their ratepayers could be charged for them.
He called for eliminating exclusive utility territories and allowing competition to lower costs as it has done in Texas and other states.
“Consumers would be much better off than depending on the phony protection of regulation.
“The purpose of utility regulation is to protect utilities from competition, assure recovery of the cost of bad investments and maintain domination over customers. The idea that utility regulators protect customers is completely wrong.
“If anyone ever doubted the purpose of regulation, the South Carolina Public Service Commission has offered solid proof.
“In the worse decision ever made by the PSC the stockholders and bond holders have been favored over utility customers.
The Chronicle has asked the state’s top regulators, the Public Service Commission, and the Office of Regulatory Staff for comment.
The PSC did not reply and the ORS declined a reply.