Clean energy is on the ballot in these utility regulator races

The presidential election may well decide the future of the United States’ ambitious new clean energy agenda, but a handful of smaller, less-discussed races will have a more immediate and direct impact on the energy transition in several different states.

Public utility commissions regulate the monopoly utilities that operate in each state, voting on such matters as what power plants utilities can build and how much money they can charge their captive customers. Each state’s PUC contains three to five commissioners, making the officials some of the most powerful people in the U.S. energy transition. In most states, governors appoint these leaders — but in 10 states, voters elect them.

This November, eight of those states have active races for at least one PUC commissioner: Alabama, Arizona, Louisiana, Montana, Nebraska, North Dakota, Oklahoma, and South Dakota. Georgia canceled its 2024 PUC elections because the state’s bizarre hybrid structure for PUC elections has resulted in a lawsuit claiming voter discrimination: PUC commissioners each represent one of five districts, but they are elected statewide, so the members of each district don’t get to decide who represents them.

Utilities recognize the importance of supporting candidates who share their interests, and spend money accordingly. But most regular people often feel little personal connection to the races or the arcane bureaucracy that unfolds at the commissions, and it can be hard to focus on these details against the raucous political backdrop of a general election.

“These PUC commissioners have the power to determine people’s utility bills, the quality of their utility service, and how their utilities are making investments in different forms of energy,” PUC advocate Charles Hua told Canary Media. ​“Yet, few people can name their state’s PUC commissioners or explain what they do.”

After stints at the Department of Energy and Lawrence Berkeley National Lab, Hua launched a nonprofit called PowerLines this fall to promote greater public awareness of the pivotal roles PUCs play in the clean energy transition. As a nonpartisan entity, PowerLines can’t endorse candidates, but Hua sees plenty of value in simply increasing participation in PUC elections.

That information gap around PUCs leads to ​“down-ballot dropoff,” in which voters select candidates in the better-known races but leave the PUC section blank, Hua said. That means voters miss out on ​“a democratic vehicle to engage with the public officials that are meant to serve the public interest through effective utility regulation.”

The implications for good utility regulation are especially high this year for anyone interested in the transition to cleaner energy, not to mention equity and affordability.

Commissioners control how much electric and gas utilities can charge customers, at a time of soaring energy bills. They’re also uniquely positioned to help get the U.S. grid on track to meet climate goals, at least on a state-by-state level, by approving more cheap, clean energy instead of letting utilities continue to expand fossil-fueled infrastructure. And PUCs can direct utilities to rebuild their grids in a more resilient way following destructive extreme weather like hurricanes Helene and Milton.

PUC commissioners wade through the technocratic morass of utility regulation and make choices that affect Americans’ pocketbooks. That’s why Hua says it’s so important for those who have the opportunity to vote in PUC races to do so, and to keep an eye on what their commission does the rest of the time.

With that in mind, let’s take a closer look at Arizona and Louisiana, two states where the stakes for the clean energy transition are particularly high this year.

Arizona could return to ambitious clean energy policy

Three of five seats are up for the Grand Canyon State’s PUC, which is called the Arizona Corporation Commission. Anna Tovar, the lone Democrat on the commission, is not running for reelection, nor is Republican James O’Connor. Republican Lea Márquez Peterson is running for another four-year term.

Arizonans get to vote statewide for the slate of PUC commissioners, and the top three vote-getters each win a seat. There are three Democrats and three Republicans running, and Arizona’s closely contested recent election cycles mean anything could happen — the commission could swing in a more pro–clean energy direction, or toward more fossil-friendly regulation.

That’s significant, because the ACC’s recent past illustrates the power of elected PUCs more clearly than perhaps in any other state. In 2018, the all-Republican commission boldly rebuked the planning proposal from the state’s largest utility, Arizona Public Service. Then the commissioners went further, imposing a moratorium on new gas plant construction, based on conservative principles: With the energy sector changing so quickly, they wouldn’t let utilities charge their customers for a bunch of expensive gas plants when other quickly maturing options could prove more cost-effective.

Those commissioners later developed their own clean energy standard, and nearly approved it, which would have been a rare instance of a proactive clean energy target coming from a PUC instead of a legislature. But the commission’s debate dragged on as state politics became increasingly contentious, and the proposal was ultimately voted down 3-2 in January 2022. Early this year, the commission voted to end the meager renewable energy standard that had been on the books for 15 years.

In AZ Central’s survey of PUC candidate views, Democrats Ylenia Aguilar, Jonathon Hill, and Joshua Polacheck each affirmed that they want Arizona to tap into more of its renewable power potential. If elected, they could push to revive the clean electricity standard, although that would be a long shot. They could also push to strengthen policies for energy efficiency and distributed energy.

That’s not to say the Republicans oppose clean energy — they just equate binding clean energy targets with adding costs for customers, which they oppose.

For instance, Márquez Peterson says she ​“supports the voluntary commitments made by our utilities for 100 percent clean and affordable energy by 2050 for Arizona.” She also wants to ​“avoid costly mandates and corporate subsidies.” Republican Rachel Walden told AZ Central that ​“forced energy investments and climate goals put the ratepayer last and thwart free market principles.”

This line of argument leaves it to utilities to pursue their own corporate targets. As it happens, solar power in dry, sunny Arizona is ridiculously cheap, and the utilities have jumped on the trend. But the lack of a long-term roadmap for the state leaves room for more gas construction in the meantime, and complicates the kind of long-term planning needed to achieve a carbon-free grid in the coming decades.

Whoever wins, the commission is sure to face capacious gas-plant proposals from utilities to meet soaring demand for data centers and new chip factories (plus some lithium-ion battery manufacturing) in the Phoenix area.

Louisiana to replace swing vote on energy issues

Louisiana’s PUC just did something the state government never accomplished: pass a modern energy-efficiency program to save households money. Now one of the architects of that program is retiring, and voters can pick his replacement.

Advocates had pushed for such a program for years, but it finally passed thanks to two commissioners with seemingly dissimilar perspectives: progressive Democrat Davante Lewis, who campaigned on climate justice; and Republican Craig Greene, a former LSU football player and orthopedic surgeon who supports market-based reforms. They both found common ground in the desire to push the state’s monopoly utility to invest in measures to reduce wasteful energy consumption and thereby save customers money. The commissioners recently selected a third-party administrator to run this program.

“Commissioner Greene has been an important champion for things like energy efficiency, and has even taken steps to move renewable energy forward in the state,” said Logan Burke, executive director of the Louisiana consumer advocacy nonprofit Alliance for Affordable Energy. ​“The seat he is in has historically been considered a ​‘swing’ vote between the two red and two blue districts.”

But Greene decided not to seek reelection as a commissioner, which in Louisiana is a part-time role. That means his seat in District 2 is up for grabs: If Greene’s successor doesn’t share his support for the efficiency measures, it could jeopardize the fledgling, long-awaited program. And this swing vote could prove decisive in decisions on new power-plant construction to meet an expected surge in electricity demand.

Democrat Nick Laborde is competing with Republicans Jean-Paul Coussan and Julie Quinn for the seat. Some 70 percent of voters in this district picked Donald Trump for president in 2020, according to the local outlet Louisiana Illuminator.

Laborde has business experience running a consulting firm and serving as product manager at NOLA Crawfish Bread, an unusually delicious experience for a prospective utility regulator. He has said he supports more renewables and wants to ​“make utilities pay more instead of raising your bill.”

Coussan’s campaign website doesn’t say much about his views on the energy system, but he does promise to regulate as ​“a true conservative watchdog, and someone who understands the importance of the role that affordable and reliable energy plays in bringing jobs to our state.” That assertion could mean Coussan would stand up to utility attempts to raise rates on customers; then again, utilities in Louisiana and elsewhere have used an emphasis on ​“reliability” to push for expensive gas-plant construction in circumstances of dubious value.

Quinn promises to ​“rein in unnecessary utility company spending that results in rising utility rates,” and to ​“oppose liberal-thinking Green New Deal initiatives that are unrealistic and costly.” But one target of Biden administration clean energy funding has piqued her interest: Quinn would like to ​“explore micro-nuclear facilities to lower utility rates.” No commercial microreactor has been built on the U.S. grid, much less lowered anyone’s rates, despite years of trying.

The Alliance for Affordable Energy does not endorse candidates, per the rules governing 501(c)(3) nonprofits. Instead, the group focuses on get-out-the-vote efforts and education about the commission, Burke told Canary Media. She’s also keeping an eye on what candidates say about transmission planning and expansion, which could open up vast new supplies of clean energy for the state.

“If we don’t get the transmission planning we need, we’ll just get 40 more years of new gas plants,” Burke said. ​“That won’t help anyone but Entergy,” the state’s largest monopoly utility.