Utah flunks disclosure for utility regulators

By Dave Anderton
Deseret Morning News
Published: Friday, Dec. 2, 2005 9:13 p.m. MST
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Utah utility regulators rank at the bottom of a new report for a lack of transparency in reporting nongovernment income, according to the Center For Public Integrity.

Utah was one of 26 states to flunk the center's financial disclosure test for public service commissioners, who are charged with setting rates for electric, natural gas and telephone companies. The Center For Public Integrity is a nonpartisan government watchdog group based in Washington, D.C.

The rankings were based on a 43-question survey. States were awarded points for requiring commissioners to name their outside employers, how much they earn and what investments and business clients they have. Points also were awarded for requiring disclosure of similar information about commissioners' spouses.

Utah received zero points out of a possible 100. Washington state scored the highest, earning 92.5 points.

John Dunbar, author of the report, said that while Utah law prohibits commissioners or their personnel from having any financial interest or conflict of interest with any public utility, the state's absence of financial disclosure laws leaves the public in the dark.

Utah, Dunbar said, is notorious for its lack of financial disclosure.

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"It's not enough just to have that statute," Dunbar said. "An official who votes in favor of an issue that benefits a client can only be held accountable if their relationship already has been disclosed. You are always going to have a problem when you regulate ethics. Ethics laws were designed for lawyers to come up with loopholes."

But Utah Public Service Commissioner Ted Boyer said Utah's statute is sufficient.

"The law is there. It's enforceable. We are bound by it, and we comply with it," Boyer said. "I don't know of any instances in which that has been abused or breached. If I had a disclosure form I would just fill out the form saying I don't own stock in PacifiCorp, a telephone company or Questar."

But Boyer did acknowledge that a commissioner's spouse who worked for a utility could create the perception of a conflict of interest. None of Utah's commissioners' spouses work for a utility, Boyer said.

Ric Campbell, chairman of the Utah PSC, said the state's commissioners are prohibited from accepting gifts, don't receive any outside income and have travel expenses paid from the commission's budget, not by utility or business interests.

Still, Sue Ashdown, a Salt Lake resident and former Washington, D.C., lobbyist, said she was disheartened to see the cozy relationship that existed between some of the nation's commissioners and utility companies.

Ashdown pointed to three conferences she attended held by the National Association of Regulatory Utility commissioners.

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