Yellowhammer caught up with Public Service Commissioner Jeremy Oden last week to discuss the environmentalist assault on the PSC, how Barack Obama’s mandates will effect Alabama jobs, and more.
Yellowhammer:
How detrimental would President Obama’s recently announced environmental initiatives be to the state of Alabama?
Public Service Commissioner Jeremy Oden:
President Obama recently announced his climate change plan, which included directing the EPA to form carbon emission standards for existing and new fossil fuel power plants. In Alabama, we are blessed to have cheap, reliable power that is largely generated by coal. This is a direct attack on the coal industry and will effect Alabamians from residential to industrial customers. Recently TVA announced plans to idle Colbert Plant in Tuscumbia due to a settlement with the EPA and the Sierra Club. This will impact the Tuscumbia area and shows what Obama and the EPA’s intentions are nationwide.
Our state has been blessed to have multiple industries choose Alabama as a place to invest and manufacture. If the EPA does as President Obama wishes, power producers statewide will be forced to invest millions to meet regulatory standards; thus raising the costs to consumers, and risking future invest from business and large employers. The full impact of this attack will be felt statewide. We cannot let this attack on coal be successful.
Yellowhammer:
The PSC just approved an agreement for Mobile Gas that lowered their revenues and lowered rates for consumers. How well do you think the review process has worked thus far?
Commissioner Oden:
Just last week the PSC voted on multiple aspects of the RSE mechanism for Mobile Gas that was preceded by a series of meetings comprising the informal hearing process. Although others have argued for a formal review, we were able to reach a decision that lowers rates for customers faster and without charging exorbitant legal fees to the state or to rate payers.
Being a former Representative, I’m used to hearing from the public and the main reason I was in favor of this process is largely due to the fact that individuals from throughout the state were able to come to the meetings and address the PSC and the utility directly. We conducted these meetings openly and I am honored to be able to help Mobile Gas customers through the decisions we voted on.
With representatives from various user groups present and the Attorney General being directly involved, the recent vote proves that this process not only works but excels. We are on the forefront in the nation in how we conducted these reviews.
I can not emphasis enough of how much money we saved the state and the consumer through this process — fully open and transparent. I am looking forward to continuing the review for Alabama Power Co. and Alagasco.
Yellowhammer:
Agencies are tightening their belts all over state government. What has the PSC done to trim the fat?
Commissioner Oden:
We have taken many measures here at the PSC to reduce wasteful government spending while maintaining a state agency that is effective and efficient in all aspects.
Previously, and with President Cavenaugh’s leadership, we have drastically reduced our department’s number of state vehicles. Each commissioner gets only one car per office. The rest are placed in a car pool for use as needed by employees. We have also submitted several vehicles back to the state surplus and have not purchased any new vehicles to replace them.
We are currently finalizing a contract for our office spaces that will allow further reductions in spending while eliminating unused and unneeded space. The commissioners themselves are reducing their own office space so we can condense other departments into that space.
The PSC is one of the few state agencies that contributes money to the general fund on an annual basis instead of receiving it. We commit millions every year to help the general fund help other agencies. As our agency continues to review costs on a daily basis, we look forward to continuing to contribute in assisting our great state in the future.
Yellowhammer:
Environmentalist groups were successful in shutting down 15 coal-fired plants in Georgia. What are you doing to make sure the same thing doesn’t happen in Alabama?
Commissioner Oden:
In Alabama we are lucky to have a very diverse blend of power generation that includes coal, natural gas, hydro, and nuclear. This results in a reliable and affordable supply of electricity to consumers. Whether it be generated from hydro by TVA, compressed air by Powersouth (which is one of only two in the WORLD and the only one in the U.S.), or one of Alabama Power Co.’s coal-fired plants, all are vital to the mix for continuing this delicate blend of power generation. I will always look to have diversity in our energy production.
Our coal production is the backbone of our cheap and reliable energy. I will be using my office to express the need to keep our coal production and to keep these jobs. I will fight these groups and stand up against any attacks that will make our production of energy costlier for our citizens.
At the heart of the matter, this is not only the fight to protect coal jobs from the environmentalists, this is also a fight to preserve our state rights. This is where it gets personal for me. Obama has used this and many other attacks to penalize the south and other conservative states that have stood against his overreaching presidential authority. He could not get a cap and trade bill passed, so he implements presidential orders to do it through agencies. Look at what is being attacked in our country and where the impact is.
This is also an attack on Alabama specifically — because of our success in creating jobs — and on the industries making use of our cheaper energy production. If the president can raise rates by raising the cost to produce energy through executive mandates, then Alabama will no longer be competitive with other parts of the country. The president is using the environmental groups to come into our state and begin a destructive onslaught of attacks against our way of life. We see them already in the energy sector, but it is only a matter of time before they fo after our agriculture, water usage, infrastructure creation, and industries. All of these sectors will begin to see these groups come after the way they maintain their production and how they operate. So I will use my office to confront and challenge them in every way I can.
We know who they are, and we will expose them.
Yellowhammer:
How is serving in the PSC different from serving in the legislature where you served for 14 years?
Commissioner Oden:
It is definitely a new challenge and there is some difference and similarities. It is different in that it is statewide office. The issues are more general. In a house seat you have to always look at the local aspect of what you are doing — how it effects the ones you represent. In the PSC you have to look at the emphasis on the local area, but also you have to consider the statewide implication. Sometimes that is not as cut and dry as it is in the legislature. This is a huge state with a lot of difference in opinions and trying to blend those into an overall decision is difficult.
One aspect in which serving in the PSC is similar to the legislare is that you have to represent everyone and come to a decision based on what is best for the majority of the whole. That means sometimes not all will agree with your decision, but many will.
Another challenging aspect of the PSC is the voting. In the house you have 105 votes. In the PSC you only have three. In the house your vote can sometimes be a small drop in a big bucket. In the PSC it can be the deciding factor in every vote.
The most difficult thing for me to get used to is that I cannot talk directly to any of the other commissioners concerning the issues we will be voting on. Since there are only three members of the PSC, when two members are gathered, there is a quorum, so we are under the open meeting law. We have personal staff that has to be our representative to each other.
I like serving as Commissioner. Although this state is big, I love going into areas and meeting the people. Alabama is a great place. We have hard working and dedicated people that are friendly and just downright good. I am looking forward to meeting as many of them as I can.
I have learned several things over my years in public service. It is about the people you represent, so always listen to them. It is important to always do the best you can, no matter how difficult it may be. And your authority is given to you by the people, with submission to the ultimate authority — God.
