Utility trade group sponsorships draw more questions for Minnesota regulators after Puerto Rico conference

Minnesota utility regulators are facing additional questions over a trip to a conference sponsored, in part, by industry interest groups.

The Details

5 EYEWITNESS NEWS reported Thursday on travel by members of the Minnesota Public Utilities Commission (PUC). The commissioners had just returned from the National Association of Regulatory Utility Commissioners (NARUC) conference in Puerto Rico.

The PUC said the trip was educational, but critics questioned why utility trade groups are paid sponsors. Some of those groups lobby on behalf of member companies. Members of at least a couple of conference sponsors include Xcel Energy, which the PUC recently approved increased natural gas and electric rates for.

“I think it’s really important to understand that these are absolutely educational events, and we completely abide by our ethical standards,” said Joseph Sullivan, vice chair of the Minnesota Public Utilities Commission, asked about the NARUC conference.

So, why are utility trade groups paying to sponsor them?

American Gas Association and Edison Electric Institute did not directly address that question. Both are utility trade groups listed as sponsors of the annual NARUC conference in Puerto Rico. Xcel Energy is a member of Edison Electric Institute and holds a seat on the American Gas Association’s Board of Directors.

A spokesperson for the American Gas Association said it had “taken no position” on recent Xcel Energy rate hikes. A spokesperson for Edison Electric Institute said it “regularly attends conferences focused on issues important to its 250 million customers…”

Neither group would say how much it paid into this conference or what that money buys.

“I think these companies wouldn’t be underwriting these big checks for the training alone,” said Eric Lipman, chief advocacy officer at Utility Reform Now.

Lipman is a former administrative law judge who worked inside the utility regulatory system. After 19 years, he left the bench in the last year.

Lipman said, “So clearly, the companies find it valuable.”

“A primary objective that both organizations have is to influence political and policy outcomes to the benefit of the groups that they represent,” said Karlee Weinmann, research and communications manager at the Energy and Policy Institute, speaking about American Gas Association and Edison Electric Institute.

“They’re corporate minded, they’re profit driven… So you can see where this interest often like directly collides with the interests of customers who are shouldering higher and higher bills,” Weinmann said.

Weinmann pointed to a 2025 NARUC “sponsor benefit” list that ties bigger payments to more perks. Sponsorship levels range from $6,000 to a minimum $50,000, and listed benefits included video recognition and social media promotion, “exclusive branding,” including on lanyards worn by attendees like state regulators, display tables and “special recognition at coffee networking breaks.”

Asked if attending conferences sponsored by interest groups adequately protects commissioners’ independence as utility regulators, PUC Chair Katie Sieben replied, “I think you should maybe ask NARUC that question, but again, I am confident that commissioners follow our state ethic rules.”

“And we do not engage in conversations or discussions that we are not allowed to have,” Sieben said.

5 EYEWITNESS NEWS directed that question about sponsorships and regulator independence to Sieben in her role as a regulator. Though, she is also on the NARUC Board of Directors as first vice president.

An Xcel Energy spokesperson said the company follows state rules when dealing with regulators and said conference-related costs “are not automatically recovered from customers.”

5 EYEWITNESS NEWS followed up with additional email questions to the PUC:

Does the commission believe the NARUC conference’s structure, including the sponsorship structure, adequately protects the independence of utility regulators? Why or why not?

“Participation in NARUC events is consistent with applicable Minnesota ethics laws, state travel requirements, and Commission policies. Commissioners and staff attending conferences are required to comply with the Commission’s Code of Conduct, state ethics laws, and the Commission’s ex parte communication rules. The Commission’s decisions are based on the record in individual proceedings and applicable law, and these safeguards preserve the independence of the Commission’s regulatory decision-making.”

Concerns have been raised by consumer advocates and others who have worked closely with utility regulation in Minnesota that elements of such conferences are “exclusionary and expensive,” affecting who’s in the room and how conferences like this might look to the average person. In her role as Second Vice President in NARUC, is there anything Chair Sieben is doing to address any possible optics concerns and increase public trust?

Chair Sieben and Commission Sullivan addressed these topics during their interview. I would refer you to the statements provided.

See Xcel Energy’s full statement below

“As the country’s energy system evolves at a rapid pace, it’s critical that energy providers, decisionmakers and other stakeholders come together to learn from one another.

Collecting information from other energy providers’ experiences and policy experts from across the country leads to better decisions for our customers and communities, helping us to provide the safe, reliable services customers depend on while keeping their bills low.

The three annual meetings hosted each year by the National Association of Regulatory Utility Commissioners, or NARUC, allow members to discuss all challenges and opportunities facing the energy industry. This is NARUC’s 138th annual conference and 78 utility companies are expected to attend this year.

As a national leader in the energy industry, we want to be a part of these conversations to share our expertise and learn from other utilities and policymakers.

When we interact with regulators, at a conference or anywhere else, we follow the rules each state commission sets for communications with commissioners and our company’s Code of Conduct. We do not discuss the merits of our pending rate cases, or any other contested case before a commission, outside the formal, on-the-record process.

NARUC rotates its meeting locations annually to demonstrate how different regions are handling both opportunities and challenges facing the industry nationally, while making the event accessible to participants from all over the country. For instance, the city of Minneapolis hosted NARUC in July of this year.

Utility regulators in Puerto Rico are part of NARUC, and the utility in Puerto Rico is part of our mutual aid process. If you recall, we sent crews to the territory to restore power after Hurricane Maria hit in 2017. This is one of many examples of how utilities work together and can learn from each other during extreme weather events.

Given the importance of this conference and the issues we anticipate being discussed, we have four leaders representing our eight-state footprint attending the conference and one is also a panel participant.

Conference agendas, speakers and attendees are publicly available, and like other business expenses, conference-related costs are reviewed through the regulatory process and are not automatically recovered from customers.

Participation in NARUC gives us an opportunity to learn from others, share our experience and bring those insights back to the customers and communities we serve.”