OOCUR Annual Conference

What do you do when best practice fails you? Most people call in the experts or blame others. But those can be serious mistakes according to PURC Director, Dr. Mark Jamison. Speaking at the 7th annual conference of the Organisation of Caribbean Utility Regulators, he described three juxtapositions that utility regulators should consider when working on problems or in contexts that are unknown. The first is to focus on next practice, not best practice. Next practice emphasizes experimentation and learning, both essential when living with constant change. Another juxtaposition is to focus on the "Why?" question rather than the "What?" question so that decisions and learning on next practices are based on a solid foundation of basic principles and fundamental insights. Finally, focus on leadership rather than leading. Leading is proper when the person in charge has the answers. When we are in uncharted territory, it is more important to provide leadership, which is about mobilizing people to rethink their situation and goals. Leadership can come from anywhere in an organization, and sometimes should not come from the top. Dr. Jamison's presentation was based on the paper "Reset for Regulation and Utilities" that he co-authored with PURC assistant director Araceli Castañeda.

World Forum on Energy Regulation

Energy regulators face many challenges in integrating new technologies and new environmental initiatives within the industry charged with meeting the energy needs of a growing world. There may be no better time for regulatory associations to take some time to invest in themselves, to better meet the challenges and opportunities of the future. At the World Forum on Energy Regulation in Athens, Greece, PURC Director of Energy Studies Ted Kury discussed the benefits of regulatory networks with an audience of energy regulators, practitioners, and media from around the world. His presentation, "Capacity Building through Regulatory Networking" described many of the benefits and scale improvements available through regulatory networking, but also discussed the questions that regulators should ask to better realize these benefits. PURC Director of Energy Studies speaks to energy regulators at the World Forum on Energy Regulation in Athens, Greece.
He concluded that the work done "up-front" by regulators will realize greater benefits for their associations in the future.

What are the important elements of training utility regulators for the future? That was the topic of Dr. Mark Jamison's presentation, entitled "Utility Regulation Today: A Nexus of Technical, Political, and Leadership Skills", presented at the World Forum on Energy Regulation in Athens, Greece. Speaking before an audience of 50 utility regulators and industry representatives from around the world, he emphasized the four essential skill areas involved in regulatory work, namely technical skills (such as accounting, law, and economics), political skills, management skills, and leadership skills. Technical issues comprise about 80 percent of the work of regulatory agencies, but they are ineffective if regulators are not also effective in working the human processes of regulation. Regulators need to think politically without being political. They also need to organize and strengthen their organizations. Finally, they also need to influence change in the regulatory and policy system when appropriate by calling attention to conflicts between current practices and new realities, and helping people make the necessary changes.

Telecom Italia

What happens if ISPs are allowed to charge Web sites for higher quality delivery of content? The amount and diversity of content grows. That's the conclusion of a recent study by Dr. Mark Jamison and PURC Research Associate Dr. Janice Hauge. Dr. Jamison's presentation of the research, entitled "Net Neutrality and Innovation at the Edges", was presented at a seminar for Telecom Italia in Rome, Italy. Dr. Jamison explained the results of the paper and illustrated how its conclusions are consistent with current debates over mobile open access. Approximately 20 managers attended the seminar.

Wireless U. Communications Policy Seminar

PURC Director Mark Jamison speaks to legislators and guests at the 2009 Wireless U. Communications Policy Seminar.
Which challenges face state legislators as they design policies for an ever changing wireless telecommunication industry? That was the topic of Wireless U., a program of the National Conference of State Legislatures conducted with the assistance of PURC and CTIA - The Wireless Association. The event in San Diego included 59 legislators from 27 states and featured a presentation by Dr. Jamison, How We Got Here: Lessons from History, as well as roundtable discussions and presentations by former regulators, academics, and industry experts.

FESC Inaugural Summit

When it comes to energy policy in the United States, policy priorities and political realities are in conflict, according to PURC Director Dr. Mark Jamison. Speaking at the first annual summit of the Florida Energy Systems Consortium in Tampa, Florida, Dr. Jamison explained that the three policy priorities—climate change, energy independence, and energy security—have a lot in common and share many common solutions. However, the political dialogue on energy policy often paints a rosy picture for job creation and economic recovery, and ignores the costs of new policies. This reality means that, in order to help advance effective public policies, academic research centers need to focus on two types of technologies. One is the group of technologies of the sciences, which give us innovations, efficiency, and systems change. The other type of technology is the human process of helping people confront realities, make choices, and change behavior.

PURC/ABAR Course

Thirty-seven infrastructure professionals from Brazil learned how to develop indicators for sector performance during the PURC/ABAR course, Regulatory Challenges of Electric Power Supply and Sanitation in Brasilia. PURC and the Brazilian regulatory association, Associação Brasileira de Agências de Regulação (ABAR), collaborated in the development of sessions addressing current issues facing Brazilian utilities and regulators.

Public Utility Symposium

What is the current state of infrastructure systems, and which conflicts are utility regulators facing? PURC Policy Analyst Dr. Lynne Holt discussed the answers to these questions in her presentation, "A Framework for Resolving Conflicts and Indentifying Trade-offs: Examples from the Electricity and Water Sectors," at the Utility Infrastructure: Its Current State, Solutions, and Who Pays? Public Utility Symposium in Columbia, Missouri. The presentation explained the four conflicts facing electricity and water regulators, with examples of the smart grid and distributed generation for the electricity sector and improving private water utility performance. The symposium, hosted by the Financial Research Institute at the University of Missouri, featured three panels and approximately 200 utility executives, regulators, staff, and consumer advocates.

International Leadership seminar

Effective international leadership requires skills in understanding context, recognizing unique situations, and bringing one's own character and values into the leadership role. These were some of the themes of the seminar, "International Leadership and Adaptive Leadership Strategies" presented by PURC Director Mark Jamison at UF's Paris Research Center. Students from the International Affairs and the Public Sphere programs identified challenges they believed they would face during their careers that would require global leadership to address, and mapped strategies for preparing themselves for these challenges. Dr. Jamison explained that on a global scale, leadership is not about being out in front and trying to direct people. Rather it focuses on trying to influence a complex system of organizations and events while being a part of that system. The students identified the core values they believe they bring to their leadership roles, and practiced ways of communicating those through presence and actions.

Paris-Sorbonne University symposium

Utility regulators face unique leadership challenges because of the special positions their agencies hold with government, according to Dr. Mark Jamison. PURC Director Dr. Mark Jamison delivered the presentation, "Leadership and the Independent Regulator" at the Paris-Sorbonne University (Paris IV) symposium. He explained that the independent nature of regulatory agencies means each stakeholder, such as politicians and service providers, must give something up in order for the regulatory system to function properly. Even though as a group, stakeholders are better off with an effective regulatory agency, individual stakeholders may see themselves as gaining an advantage by challenging the agency's role. This means that formal institutional rules are not enough to make a regulatory institution strong. Personal leadership skills are needed as well, especially during times of change. The leadership skills required for regulators are different than those required for heads of companies or other government bodies, in that the regulator is not authorized to lead (as leading is reserved for politicians and other public leaders). So the regulator must be prepared to effectively influence the direction and dynamics of change without being the change manager.

PURC in Naples

Do we need to remake utilities and regulation because of technology and environmental changes? That was the topic of a seminar presented by PURC Director Dr. Mark Jamison at the University of Naples Federico II in Naples, Italy. The presentation, entitled "Reset for Regulation", examined the fundamental properties of utility services and how these fundamentals led to regulation and determined the design of regulatory agencies many years ago. Dr. Jamison then outlined approaches for examining whether these fundamentals still hold and in areas where they do not, how regulators and stakeholders can test new approaches. He explained that regulation came about because of practical issues and that today's regulatory institutions developed through a series of experiments that saw more failures than successes. He concluded that resetting regulation and utilities today should also occur through carefully considered experiments and not through grandiose visions and reorganization because even the best and the brightest among us do not fully comprehend the problems we face today.

Water Sector Performance in Mexico

The Mexican water and sanitation sector is examining ways to improve performance. PURC Director of Water Studies Sanford Berg delivered the presentation, "International Experiences in Water Utility Benchmarking" at the First International Forum on the Water Sector and National Competitiveness in September, organized by the Mexican Institute of Water Technology (funded by USAID). The group concluded that resolving technical issues was necessary but not sufficient for genuine reform. Greater attention must be given to institutional governance, organizational incentives, transparency, and utility benchmarking. The forum included presentations from academia, government agencies, utility operators, and international organizations.

11th Annual Pacific Crest Technology Leadership Forum, Vail, Colorado

PURC Director of Energy Studies Ted Kury discussed the future of renewable energy and smart technologies with industry experts and representatives of 175 public and private technology firms. As a panelist for the "Smart Grid Luncheon" at the 11th Annual Pacific Crest Technology Leadership Forum, he explained the need to define objectives for the smart grid. He also stressed the need for the regulatory framework to evolve, so that we can take advantage of the technological advances as they occur. He also participated in informal panel sessions with representatives of individual companies, to learn about their unique perspectives in this rapidly evolving portion of the energy sector.

Leadership and the Independent Regulator

How can infrastructure regulatory agencies adapt to the constantly changing technology, industry, and political situations? That was the topic of PURC Director Mark Jamison's presentation, "Leadership and the Independent Regulator" at the Academy of Management 69th Annual Meeting in Chicago, Illinois. Dr. Jamison's talk emphasized the unique perils of regulatory agencies during times of change. These agencies were created to be independent of political players and industry, consumer, etc. stakeholders, and to provide continuity and stability during times of political change. However, in today's complex environment, utility regulators find themselves as key players in the system, which challenges their role as independent agencies. As a result, now more than ever, regulators must possess leadership skills that help them navigate and orchestrate a process that they cannot lead. Other presenters in Dr. Jamison's session examined the transformation of transportation regulation in Italy and the roles of infrastructure regulators in Europe.

Body of Knowledge on Infrastructure Regulation web site

• What is the state of art in regulatory practices?
• How are regulators addressing emerging issues?
• Which basic principles can be relied upon to guide regulatory decisions during times of change?

The answers to these questions, and many more, can be found on the newly updated Body of Knowledge on Infrastructure Regulation (BoKIR) web site. This site is a comprehensive online resource for utility and regulation professionals, policy makers, and academics focusing on regulatory reform and the promotion of strong performance in energy, telecommunications, transportation, and water sectors.

The Body of Knowledge on Infrastructure Regulation contains summaries of regulatory literature, tutorials, self-paced tests, and more than 500 downloadable references for regulatory reform and performance improvements in infrastructure industries. The online glossary has been translated from English into Chinese, French, Italian, Portuguese, and Spanish. The redesigned site also includes a new feature providing guidance regarding Frequently Asked Questions.

This online resource was originally developed in 2006 and has benefitted from funding from The World Bank and the Public-Private Infrastructure Advisory Facility (PPIAF). PURC has led the effort to update content for the new site.

FLATOA Annual Conference
Will the U.S. stimulus dollars for broadband create jobs and economic growth? That's not likely, according to PURC Director Dr. Mark Jamison. Speaking before the annual meeting of the Florida Association of Telecommunications Officers and Advisors, Dr. Jamison addressed three basic questions: (1) Does the United States have a broadband problem? (2) Does broadband stimulate jobs and economic growth? and (3) Will stimulus dollars for broadband create jobs and economic growth? Noting that the political support for broadband stimulus dollars was based on the OECD's ranking of countries in terms of broadband penetration, which ranks the U.S. 15th, Dr. Jamison explained during his presentation that the ranking system is flawed in its data collection and methods of calculation. More comprehensive and rigorous rankings find the U.S. leads the world in application of advanced telecommunications technologies. Studies consistently show that broadband deployment and adoption stimulate jobs and economic development, but the job growth represents regional effects, meaning that jobs shift from less-developed regions to more-developed regions. The stimulus money for broadband may not create jobs overall in the country, unless it encouraged immigration. The stimulus money may be unlikely to cause economic growth because the money has to come from somewhere. If it comes from taxes, the effect may be to decrease growth when the taxes are collected. If it comes from accelerated growth in the money supply, it may simply cause inflation, which could lower confidence in the economy and perhaps damage the country's standing in the world economy. The event was co-sponsored by the Florida Communications Bar Association.

Practicing Leadership in a Political Environment: A One-Day Intensive Training Workshop for Emerging Leaders in Utility Policy
PURC Director Mark Jamison and Assistant Director Araceli Castañeda delivered a leadership workshop for regulatory professionals.

26th PURC/World Bank International Training Program on Utility Regulation and Strategy
Gainesville, FL

6th Annual Congress of the Association of Brazilian Regulators
Regulatory networking promotes the sharing of ideas and experiences across regulatory jurisdictions. More than 500 regulators and infrastructure executives from Brazil and nine other nations attended the 6th Annual Congress of the Association of Brazilian Regulators (ABAR).
PURC Director of Water Studies, Sanford Berg, center, participates in the plenary roundtable at the 6th Annual ABAR Congress.
PURC Director of Water Studies Dr. Sanford Berg gave two talks at the recent event. He served on the Plenary Roundtable on International Experiences in Regulation, where he described, "U.S. Infrastructure Regulation: Legal Structures for Reducing Conflict." In addition, he presented a technical paper, "Bolivian Utility Regulation: Lessons for a Water Sector Agency" (with co-author Claudia Vargas). Many alumni from the PURC/World Bank International Training Program attended the Congress. The technical papers, photo gallery and presentation summaries are available online at www.abar.org.br/.

PURC Director, Mark Jamison, answers a question during a telecom session at the May 2009 PURC/OOCUR Advanced Course: Advanced Methods in Regulatory Pricing and Industry Analysis in Miami Beach. Participants (L to R): Brenda Sentamu from Uganda, John Williams from Turks & Caicos, Michael Kamba from Tanzania, and Katie Morris from Turks & Caicos.

2009 PURC/OOCUR Advanced Course
Twenty-four infrastructure professionals from 12 nations learned to prepare for and perform price reviews, and develop economic incentives appropriate for utilities in small economies during the 2009 PURC/OOCUR Advanced Course: Advanced Methods in Regulatory Pricing and Industry Analysis. The week-long program utilized case studies, exercises, and presentations as participants shared their expertise while learning how to evaluate market competition and develop remedies for market failure, analyze financial statements for rate setting and evaluating sector performance, and create and evaluate benchmarking systems. In addition, they implemented local number portability schemes and evaluated merger proposals. They also developed innovative price structures, and formulated policies for increasing broadband penetration.
The week provided participants with new tools for performing their jobs more effectively - promoting improved performance in the energy, telecommunications/information technology, and water sectors. PURC professionals leading sessions included PURC Director Mark Jamison, PURC Director of Water Studies Sanford Berg, and PURC Director of Energy Studies Ted Kury.

Energy Risk USA
"May you live in interesting times" is often attributed as the "Chinese Curse," despite the fact that it can't be traced back to China, and may not even be a curse. "Interesting times" may impose challenges, but may also offer opportunity. Financing major utility infrastructure projects during turbulent times in the capital markets may be a challenge, but state policies like those in Florida may offer a solution. PURC Director of Energy Studies Ted Kury spoke with delegates at Energy Risk USA in Houston about his upcoming paper with PURC Policy Analyst Dr. Lynne Holt about the role of state policies and utility infrastructure development.

Internationalization of Infrastructure Conference, The Netherlands
Does utility internationalization mean that we need to internationalize regulation? That was the question addressed by PURC Director Mark Jamison in his keynote address at the conference, Internationalization of Infrastructures, at Delft University of Technology. To answer the question, he explained to the 100 attendees that internationalization of utilities involves physical networks, logical networks, financial interconnections, policy spillovers, and geopolitics. In comparing this pattern of cross-country effects of infrastructure to the traditional purposes and designs of regulatory agencies, Dr. Jamison concluded that current institutions appear to be appropriate for the task. He suggested, though, that research is needed on organizational learning, adaptation, and leadership in regulation so that regulators and stakeholders can effectively address changed circumstances when needed.

Exploring the Coherence between Institutions and Technologies in Liberalized Infrastructures Workshop, The Netherlands
Changing utility technologies, such as the adoption of smart grid technologies, means that regulatory and business organizations will have to change, according to PURC Director Mark Jamison in his remarks at the workshop, Exploring the Coherence between Institutions and Technologies in Liberalized Infrastructures, at Delft University of Technology. Commenting on research at Delft about how mismatches between the boundaries of regulation and the boundaries of industry can hurt performance, he explained U.S. experiences in which changes in regulation resulted in technology surprises that erased long held assumptions about the ways in which utility technologies should work. Dr. Jamison emphasized the need for experimentation before undertaking large regulatory changes to the 50 telecommunications professionals in attendance.

UNCTAD Meeting in Geneva, Switzerland

Dr. Berg listens to audience comments during the UNCTAD meeting in Geneva.
PURC Director of Water Studies Dr. Sandy Berg was invited to attend the United Nations Conference on Trade and Development (UNCTAD) Multi-year Expert Meeting on Services, Development and Trade: the Regulatory and Institutional Dimension in Geneva. He delivered presentations on legal structures for promoting public-private partnerships (focusing on conflict resolution), regulatory networking and training, and on evaluating the effectiveness of regulatory institutions.

PURC Prize in Regulatory Economics
Jay Pil Choi and Byung-Cheol Kim, authors of the Net Institute Working Paper, Net Neutrality and Investment Incentives, earned the PURC Prize for the Best Paper in Regulatory Economics presented at the Seventh Annual International Industrial Organization Conference in Boston.

The paper analyzes the effects of net neutrality regulation on investment incentives for Internet service providers (ISPs) and content providers. The paper shows that when an ISP enables some content providers to purchase priority treatment of the delivery of their content to customers, sometimes the ISP is more likely to make new network investments and at other times the reverse is true. The investment impact is determined by a potential trade-off between the prices charged to customers and the prices charged to content providers.

PURC aims to increase the understanding of complex and critical regulatory issues, and awarded this year's prize to the IIOC submitted paper that best contributes to that goal.

Dr. Berg, left, meets with Paul Reiter, executive director of the International Water Association, at the forum.
World Water Forum in Istanbul, Turkey
Dr. Berg attended the World Water Forum in Istanbul where he met past participants of PURC training programs and with representatives of funding agencies that support research on water utilities. He attended sessions on the provision of performance data by utilities and a session on regulatory networking. The forum is scheduled every three years and brings together water professionals from around the globe.

Dr. Berg, left, meets with Paul Reiter, executive director of the International Water Association, at the forum.
Golden Gator Award Winner
The PURC Web site has earned the 2009 Silver Award in the University of Florida's Golden Gator competition under the category of Web/Interactive Media. A dedicated team of PURC staff and IT staff from the Warrington College of Business Administration at UF redesigned the PURC Web site to actively engage users through easy access to information about PURC research and training programs. The judges' comments included "Great use of web technologies. The searchable databases seem very powerful and the use of current media make this a powerful site," and "The Web site is fantastic, easy to navigate and very informative."

Risk Symposium
What can we learn from the first 50 days of the Obama administration? What impact will the new administration have on energy policy and the energy markets? Ted Kury, PURC director of Energy Studies, explored these questions with the participants of The Energy Authority's Risk Symposium in Jacksonville, Florida during his presentation, "New Administration's Impact on Energy Policy and Markets." The symposium drew representatives from municipal utilities across the country to learn how to prepare their systems, and their customers, for the challenges facing the industry.

PURC in Lisbon, Portugal
Is broadband on a cell phone just as good as broadband over wire? That was the subject of the presentation, "Mobile Broadband Adoption, Uses and Effects," by PURC Director Dr. Mark Jamison at a workshop in Lisbon, Portugal. The workshop, sponsored by the Organisation of Economic Co-operation and Development (OECD), raised the discussion of the ways in which the OECD should gather data from its member countries on broadband penetration. PURC Director Mark Jamison, far left, prepares to deliver his presentation at the workshop in Portugal.
Currently, the OECD does not gather data on mobile broadband, such as through the use of cellular phones. The research by Dr. Jamison, in conjunction with PURC associates Drs. Janice Hauge and Mircea Marcu, demonstrates that customers view the technologies as essentially substitutable, except that mobile broadband customers are more likely to have higher incomes and are more likely to use the Internet for financial management purposes than are users of more traditional broadband technologies. The research, which is sponsored by the telecommunications regulator in Portugal, ANACOM, uses data from customers in Portugal.

MSF Students
New Energy Secretary Steven Chu recently predicted that bright young people who have traditionally looked for careers in finance would begin to gravitate towards energy. Ted Kury, right, spoke with 45 students in UF's Master's of Science in Finance program about his experiences in the energy industry. He focused on the types of work opportunities, the variety of work environments to expect, and the skills and knowledge they will use in this diverse field.

Implementing the Broadband Stimulus: Maximizing Benefits and Monitoring Performance
How will we know if the broadband stimulus bill is working as planned? This question was addressed by PURC Policy Analyst Dr. Lynne Holt at the conference, "Implementing the Broadband Stimulus: Maximizing Benefits and Monitoring Performance," in Washington D.C. Dr. Holt, who based her presentation on her recent paper, "State and Federal Policies to Accelerate Broadband Deployment: A Policy Checklist," with Mary Galligan, said that state government needs to consider the broadband stimulus package plans and create a checklist for things that will be done. She emphasized the state's role, as opposed to the economic role in general.

PURC in Washington, D.C.
With a new administration comes greater emphasis on climate change policies. As the United States embarks down this path, it is useful to take a look at experiences in similar policies from around the globe. The lessons learned by other countries, often at great expense, can help smooth some of the bumps on the way to the country's energy future. Ted Kury, PURC Director of Energy Studies, participated in a panel discussion on Carbon Policies before the NARUC Committee on International Relations. Also serving on the panel were Gaeton Caron, chairman of the National Energy Board of Canada, and Branko Terzic, Energy Policy Leader at Deloitte Services and the UN Economic Commission. Mr. Kury's presentation was titled "Overview of Global Greenhouse Gas Initiatives". The panel, and the discussion that followed, raised many important issues that the country will need to address in the coming years.

PURC in Washington, D.C.
PURC/CLA Executive Development Series for Utility Commissioners - Leadership in Energy and Climate Policy seminar: Mobilizing for Action

36th Annual PURC Conference in Gainesville, FL
Changes in Climate and Information Technologies: Who's Driving Utility Policy?
Eli Noam, director of the Columbia Institute for Tele-Information, was the recipient of the 2009 PURC Distinguished Service Award. Mark Futrell was the recipient of the 2009 Gerald L. Gunter Distinguished Service Award.

25th PURC/World Bank International Training Program on Utility Regulation and Strategy in Gainesville, FL
In attendance for the 25th program were 79 participants from 33 nations.