Regulated Utility Negotiated Agreements: A Utah Case Study

Ted C Peterson

doi:10.3390/businesses2010002

Abstract

Previous scholars have noted the increase in negotiated agreements as a means of resolving utility regulatory disputes in the United States. These agreements allow policy actors to make their own decisions instead of receiving orders from a regulatory agency. Through a natural gas utility case study in the state of Utah, this paper examines the Advocacy Coalition Framework’s (ACF) novel explanation of the conditions contributing to a negotiated agreement with the emergence of new energy efficiency programs. Using the ACF, coalition groupings are divided out as either those in favor of energy efficiency programs or those against that change. A content analysis explores the presence of the conditions leading to a negotiated agreement. This article finds that the ACF model provides a theoretical lens to understand negotiated agreements in utility regulation. While utility agreements resolving regulatory proceedings seem to only grow, more research opportunities exist for further study on the ACF and these outcomes in utility regulation.

Highlights

Public officials, and the public at large, demand that investor-owned utilities take an expanded role in issues surrounding the public interest [1]
Research Question This paper examines the facet of a negotiated agreement juxtaposed against public policy’s Advocacy Coalition Framework (ACF) through a single case study examining the emergence of a natural gas utility energy efficiency program in Utah
Using this framework as a means for explaining negotiated agreements, this paper explores the following research question: What leads to the formation of natural gas utility energy efficiency programs in Utah? To aid in the response and investigation of this research question, four separate, specific hypotheses will be explored, all within the construct of the ACF

Summary

Introduction

Public officials, and the public at large, demand that investor-owned utilities take an expanded role in issues surrounding the public interest [1]. No longer does it suffice for an electric or natural gas utility to solely provide safe and reliable service at affordable rates. Parties may conduct settlement conferences or discussions with some or all of the parties with the goal to find common ground on reaching a settlement of some or all of the disputed issues In these discussions, settlements (agreements) may be reached by some or all of the parties in a rate proceeding and presented to the commission in the form of a signed stipulation for approval [2]

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Conclusion