Providing Stability While Leading Change Mark A. Jamison Director - - PowerPoint PPT Presentation

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Providing Stability While Leading Change Mark A. Jamison Director - - PowerPoint PPT Presentation

Nov 24, 2022 656 likes •756 views

Providing Stability While Leading Change Mark A. Jamison Director Leadership in Infrastructure Policy www.purc.ufl.edu 1 Purpose(s) of regulation Limit natural monopoly rents Provide friendly environment for sunk investments

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SLIDE 1

“Leadership in Infrastructure Policy” www.purc.ufl.edu 1

Providing Stability While Leading Change

Mark A. Jamison

Director

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SLIDE 2

Purpose(s) of regulation

  • Limit natural monopoly rents
  • Provide friendly environment for sunk

investments

  • Provide opportunity for rent seeking
  • “Don’t cost me the next election”

“Leadership in Infrastructure Policy” www.purc.ufl.edu 2

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SLIDE 3

“Leadership in Infrastructure Policy” www.purc.ufl.edu 3

Why independent regulatory commissions?

  • Problems with regulation by political

bodies

Lack of expertise and stability/continuity Opportunism and corruption Resulted in

  • Bankruptcies or embarrassing profit
  • Limited investment
  • Stakeholder rent seeking or revenge taking
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SLIDE 4

Basic challenge

  • Regulation was established to deal with

problems with human behavior

Technology, world events, and the like change the context, but not the basic problems

“Leadership in Infrastructure Policy” www.purc.ufl.edu 4

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SLIDE 5

Basic roles for regulators

Sector Goals

  • Sufficient and efficient

service

  • Service quality
  • Non-confiscatory prices

Institutional Goals

  • Credibility
  • Legitimacy
  • Expertise

Technical Instruments

  • Ratemaking
  • Financial oversight
  • Obligations to serve
  • Market structure

Institutional Instruments

  • Stakeholder input
  • Transparency
  • Independence
  • Capacity building

“Leadership in Infrastructure Policy” www.purc.ufl.edu 5

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SLIDE 6

Current context

Industry

  • Rapidly increasing costs

(energy)

  • Changing expectations

(environmental; technology)

  • Rapidly changing industry

(telecommunications)

  • Unrecognized realities

(all)

  • Rising populism
  • Following the polls
  • Scapegoating
  • Mandating without paying
  • Micromanagement

Political

“Leadership in Infrastructure Policy” www.purc.ufl.edu 6

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SLIDE 7

Segmenting What Regulators Do

What is possible? What is important? How can we do it?

  • Engineering
  • Economics
  • Finance
  • Law
  • Leadership
  • Management
  • Forums
  • Politics
  • Negotiation
  • Dialogue

www.purc.ufl.edu

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SLIDE 8

Emphases

What is possible? What is important? How can we do it?

  • Technical

work

  • Fundamental
  • Mingling with

professional peers

  • Adaptive work
  • Situational
  • Mingling with

stakeholders

  • Perilous work
  • Situational
  • Mingling with politics

www.purc.ufl.edu

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SLIDE 9

Regulating today is…

…disappointing people at a rate that they can endure

www.purc.ufl.edu