Many electric utilities – including Entergy Louisiana, Entergy New Orleans, CLECO, and SWEPCO in our state – pay dues to industry trade associations such as the Edison Electric Institute.
In many instances, the cost of these dues are passed on to ratepayers in ratemaking proceedings, while the trade associations engage in speech and other activities detrimental to the interests of those same ratepayers.
For instance, Edison Electric Institute Chairman Tom Fanning has publicly denied the reality of climate change caused by human activity, and the organization has lobbied against the regulation of greenhouse gas emissions. For us in Louisiana, the reality of climate change is manifest in the devastation across the southern half of our state, and efforts to hinder the ability of government to combat it are quite literally a threat to our lives.
In March 2021, the Center for Biological Diversity petitioned the Federal Energy Regulatory Commission (FERC) to amend its rules regarding the accounting of utility trade association dues so that they are disallowed from being passed through to ratepayers. The Center for Biological Diversity argued that forcing ratepayers to fund the speech of trade associations with which they disagree is a violation of their First Amendment rights.
The Alliance filed comments in support of the Center for Biological Diversity’s petition. The Louisiana Public Service Commission also filed comments, and while they argued that some industry association costs could be legitimately charged to customers, the Commission largely agreed that FERC has an obligation to take some action to improve transparency.
