Utility Watchdogs Describe a Revolving Door of Utility Regulators Working for Utilities After their Time in Public Service

Saturday, August 5th, 2023 -- 9:00 AM

(By Joe Schulz, Wisconsin Public Radio) A former Wisconsin utility regulator now works for a company she was once charged with regulating.

According to Joe Schulz with Wisconsin Public Radio, it's the latest in what utility watchdogs describe as a "revolving door," both in Wisconsin and across the country, of regulators working for utilities after their time in public service.

Ellen Nowak was appointed to the Public Service Commission of Wisconsin, or PSC, by Gov. Scott Walker in 2011, and reappointed to the commission in 2018. Last week, American Transmission Co., a multi-state, transmission-only utility, announced that Nowak had joined the company as the vice president of regulatory and government affairs.

American Transmission Co., or ATC, is owned by utilities, municipalities and electric cooperatives. Those include Wisconsin-based utilities like Alliant Energy, Madison Gas & Electric and WEC Energy Group, the parent company of Wisconsin Public Service and We Energies.

Nowak did not respond to requests for comment. But in a statement, ATC spokesperson Alissa Braatz said Nowak’s "extensive background" in regulatory matters and the utility industry will help the company "achieve its mission to strengthen the regional electric grid for the benefit of all energy consumers."

Nowak's term with the PSC ended in March, and state law prohibits her from appearing before the commission within 12 months of her departure. A PSC spokesperson declined to comment about ATC’s recent announcement.

Tom Content is the executive director of the Citizens Utility Board of Wisconsin, a nonprofit that advocates for ratepayers. He said Nowak's new role underscores the challenges facing the customer side of the regulatory process.

"There's a revolving door challenge with regulators going to work for utilities, it's not the first time that's happened, it won’t be the last, I'm sure," Content said. "But it really does highlight that utilities have influence, access and power."

Since 1996, at least five former PSC officials have gone on to either work for utilities directly or to work for law firms that represent utilities or help them with regulatory filings, according to the Wisconsin State Journal.

Additionally, former PSC chair Mike Huebsch, a Walker appointee, applied for a job with Dairyland Power after voting to approve the Cardinal-Hickory Creek transmission line, which Dairyland was helping to build.

And current PSC chair Rebecca Cameron Valcq, appointed by Gov. Tony Evers in 2019, has faced criticism for previously serving as a regulatory attorney for We Energies. The "revolving door challenge" Content described isn’t unique to Wisconsin.

A study this summer from Brown University examined public utilities commissions across the county. It found that of 473 commissioners, 50 percent went on to either work for one of the industries they regulated or work in an industry-adjacent role after leaving utility regulation.

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