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Public Service Commission budget steady; agency cites turnover and growing regional regulatory work
Summary
The Public Service Commission told the House Appropriations Committee its FY26 budget is $10.9 million funded by self‑generated fees, and officials warned of turnover among regulatory attorneys and auditors while noting recent regional duties — including frequent work before FERC and regional transmission organizations — have raised travel needs.
The Public Service Commission presented its FY26 executive budget recommendation of $10.9 million to the House Appropriations Committee on March 25, 2025, and commissioners’ staff described steady revenue from inspection and carrier fees but growing regulatory obligations at the regional and federal level.
Abigail Chasten of the House Fiscal Division said the PSC’s FY26 recommendation totals $10.9 million, entirely supported by self‑generated revenues, with personnel services accounting for roughly 85% of the agency’s budget. Brandon Frey, the PSC’s executive secretary, told lawmakers the commission delivered $184.3 million in direct savings and $61 million in indirect savings to ratepayers through docketed proceedings this fiscal year.
Frey and staff said the commission has 95 authorized positions and 16 vacancies as of the end of calendar 2024 and that the PSC’s average salary runs about $4,000 below the statewide average. They said turnover is pronounced for specialized attorney and auditor roles that require high technical skill and noted competition for those employees from other agencies and the private sector. The commission reported stepped‑up hiring rates but said civil service limits and limited upward mobility in a small agency make retention difficult.
Representative Marcel asked about a $33,000 projected increase in travel for attorneys and auditors; Frey said the commission frequently participates in federal and regional proceedings before the Federal Energy Regulatory Commission (FERC), in Washington, D.C., and in regional transmission organization (RTO) meetings, including MISO and Southwest Power Pool, which require travel to regional venues.
Members also asked about a pending FCC rule that would cap inmate telephone and video call rates; Frey said the FCC action could preempt state regulation if upheld, though litigation is pending and the commission will enforce federal rules where applicable.
Frey said the PSC has special interest rates for attorney recruitment to help retain regulatory staff and that the commission uses outside counsel and expert witnesses on major cases — costs which are typically billed to the utilities involved rather than borne by the PSC’s operating budget.
Lawmakers raised the potential effect of large industrial energy users (some referenced data‑center projects) on system planning. Frey said projects like data centers are addressed through commission dockets and through regional planning groups, and that commission staff and outside experts work to evaluate reliability, transmission and rate impacts.
The PSC presentation closed with a request for continued support for recruitment tools and for civil‑service adjustments that permit the commission to remain competitive for specialized regulatory staff.
