1. Factoring Consumer Concerns Into The Public Interest World Forum on Energy Regulation V Québec City, Québec May 13-16, 2012

2. 2 Setting the Context What is the “Public Interest?” “Consumer Concerns” or “Customer Needs” are a part of that (the title could suggest that they aren’t) Real issue is reconciling or “balancing” the objective of public interest from day-to-day customer needs This is the task faced by utilities every day

3. 3 Dealing with it is a long term planning exercise Regulated energy services provision is, at its core, a long term planning exercise Four groups of players share responsibility in ensuring a long term supply of reliable, and affordable energy service. Legislators/Energy Policymakers Regulators Shareholders/Utilities Customers/Public

4. 4 Key Requirements Stable Legislative Framework Results Oriented Regulation Strong Standards for Utility Energy Service Delivery Strong Customer Understanding/Public Knowledge of energy service and systems

5. 5 Stable Legislative Framework Key Influences Jurisprudence Just and reasonable rates, fair and comparable returns. New energy policies Emissions targets, renewable fuel use targets Public opinion & action NIMBYism is dominate

6. 6 Results Oriented Regulation Based on legislation (Utility Act) Objectives well defined Flexible Balances competing interests Provides oversight Provides forum for resolving matters in dispute Speaking Note: Discuss Saskatchewan Rate Review Panel here as an example of how to do things right. Needs Understanding and Striving for Balance Are Key to Effectiveness

7. 7 Standards of Service Delivery Based on Industry Best Practice e.g. Operations Meets Public Interests e.g. Safety Expectations Sets Customer Service Targets e.g. Choice of Service

8. 8 Customer Understanding/ Public Knowledge Customer Dialogue Critical Component Canadian Gas Distribution Companies Relationship with Customer Adds Value Connection with Public Through Communication Translates to Knowledge Base Critical to an Effective System

9. 9 Staying on top of day to day balance is a Shared Responsibility Legislators Stability Regulators Balance Shareholder Safe, Prudent, & Communicate Customers Seek Knowledge & Provide Feedback Calling Before Digging, Report Odors