NARUC's Powelson Wants Cooperative Federalism, Telecom Investment in 2017

Powelson is a “state rights advocate,” but also a “realist,” he said in an interview last week. Powelson joined the Pennsylvania PUC in 2008 and was chairman from 2011 to 2015; he was president of the Mid-Atlantic Conference of Regulatory Utilities Commissioners from 2014 to 2015. “If we strike [a] tone very early on of cooperative federalism, where states and federal agencies are aligned in principles around infrastructure development [and] innovation behind the set box, then we’re off to the races.”

Powelson offered some praise for the current FCC. “Chairman [Tom] Wheeler, to his credit, had tried to engage states and we were blessed to have one of our own in [Commissioner] Mignon Clyburn and her outreach to NARUC,” Powelson said. “We hope that continues with any new appointee that comes on the FCC.” But the NARUC president predicted the new administration will take “a serious look back at some of the orders that have come out of the FCC.” The agency “will have some challenges over the next six months,” he said. Powelson noted states’ criticism of some controversial FCC orders including Lifeline, inmate calling and VoIP numbering, items where NARUC complained of “federal overstep on state commission authority.” Powelson stopped short of backing reversal of any orders but said they warrant “certainly a cursory review.” “I’d like to see some assessment and metrics applied and then let’s have that decision.”

NARUC will continue to seek FCC process reform, said Powelson. State commissioners cited several possible areas for reform in our August special report (see 1608230009). Powelson seeks overhaul of ex-parte procedures, which he said advantage D.C.-based industry lobbyists over the states. “We feel as state regulators that the carriers are getting to run roughshod over [us]. We can’t be in Washington … for all the FCC hearings. It’s nice to have streamed meetings, but the reality is we just don’t have the luxury of the weekly fly-in to dialogue with the FCC.” Current ex-parte rules permit open dialogue about a rule the day before a vote, he said. “The stench of that kind of communication leading up to a public meeting week” gives states “a very uncomfortable feeling.”

NARUC’s 2017 infrastructure theme dovetails with Trump’s plan for a $1 trillion infrastructure package that’s scheduled for the first 100 days of his administration, said Powelson. Washington tends to focus its thinking about infrastructure on roads, bridges and airports, but NARUC next year will strongly promote investment in energy, water and telecom, he said. Those utilities “cannot be discounted in that conversation,” he said. NARUC is “in the early stages” of contact with the Trump transition team, Powelson said. The association will position itself toward the new administration and Congress as “the interconnect for agencies like the FERC and the FCC to engage states,” he said.

Powelson sees a changing customer for broadband -- one who is “extremely savvy,” seeks many options and demands service affordability and reliability, he said. In the mid-'90s, many jurisdictions, including Powelson’s home state of Pennsylvania, passed legislation that incentivized incumbent carriers to "go out and connect counties, schools, hospitals and bring a standard offering of broadband deployment,” he said. But there remain “haves” and “have-nots” in broadband, he said. In Pennsylvania, which the commissioner sees as a “microcosm” for the rest of the country, the haves live in urban and suburban areas, while the have-nots are in rural areas, he said.

Powelson plans to choose a replacement for outgoing NARUC Telecommunications Committee Chairman Chris Nelson of South Dakota by Jan. 1, he said. The president said he’s working closely with Nelson to find “someone to fill his shoes” and “who can reestablish relationships with the FCC and all the players in the telecommunications field, beyond just the traditional incumbents.”