Scandal: Are Changes in Markets Increasing Ethical Challenges?

Political scandals such as bribery and influence peddling are nothing new. There are innumerable examples from many industries and interest groups. While all economic interests engage in lobbying, some industries, such as electricity, whose operations and economics are so closely intertwined with public policy and regulatory oversight, are engaged more intensively. The transition to greater competition and a lesser role for government intervention led many observers to believe that political scandal would be reduced, as reliance on lobbying for better economic performance would decline. Recent controversies suggest that competition and markets have not led to fewer ethical/criminal challenges. Indeed, perhaps, the change of regulatory oversight in an industry with extremely high capital stakes may have left the industry more exposed to the risks of corruption. Is that the case? Why or why not? Political scandals are typically handled by ethics bodies or the criminal justice system, but is there a role for utility regulators in both setting an environment in which corruption might be discouraged, if not prevented, and in reacting to cases where there are either credible allegations of corruptions and/or actual legal findings of such? If regulators do intervene, what tools should be at their disposal either prophylactically or responsively to deal with power sector enterprises alleged or proven to be engaged in unethical and/or unlawful activity?

Moderator: Ashley Brown, Harvard Electricity Policy Group

Speakers:

Devin Hartman, R Street Institute

Emily Fisher, Edison Electric Institute

Travis Kavulla, NRG Energy

Barbara Lockwood, Arizona Public Service