House panel presses Public Service Commission on budget requests, flags $110,000 gap for national-case work

Bismarck — Commissioners and staff from the North Dakota Public Service Commission told the House Appropriations Government Operations Division on Monday that they need extra funding to participate in national regulatory and court cases and to sustain several technical inspection programs.

The Public Service Commission (PSC) asked the committee to restore an "intervention" operating line of $380,000 for the upcoming biennium, citing work before federal regulators and courts that the agency says affects energy reliability and costs. Randy Christwin, speaking on behalf of the PSC, said Governor Doug Burgum’s budget included $300,000 but Governor Kelly Armstrong’s budget reduced that to $190,000, leaving an $110,000 shortfall versus the PSC’s request. "We requested $380,000 for these interventions. Governor Burgum granted 300 of the 380 and Governor Armstrong cut that," Christwin said.

Why it matters: the PSC says those dollars pay for outside law firms and expert consultants needed to pursue or defend cases at venues such as the Federal Energy Regulatory Commission (FERC), the Federal Communications Commission and in federal courts. Commissioners pointed to prior multistate litigation — including opposition to the Clean Power Plan — as precedent for states playing lead roles in national rule‑making and lawsuits.

The PSC told lawmakers the agency has a mix of general, federal and special funds. For ordinary operating expenses the PSC seeks roughly $625,000 for the biennium; the PSC reported it has taken in about $601,000 in self‑assessed fees so far and that the self‑funding mechanism is intended to allow up to $1.1 million to roll from one biennium to the next without separate legislative action. Christwin said last biennium the agency received about $120,000 in intervention operating authority and has nearly exhausted it on two cases.

Committee members asked whether litigation money could be obtained elsewhere. Christwin and others noted an existing litigation fund at the attorney general’s office and that the PSC could seek access to it if necessary, but the commission prefers a standing intervention appropriation to ensure timely participation in fast‑moving FERC and other proceedings.

Staffing and inspections: lawmakers also discussed the PSC’s weights and measures and rail‑safety programs. The PSC said it now has three weights and measures inspectors (two focused on gas pumps and small scales, one on large commercial scales and pits) and is asking for an additional large‑scale inspector; neither governor funded that position. The PSC said fees charged for small scale testing are set in statute and are far below program cost — staff mentioned $20 as the current small‑scale test fee — and that some services, such as verifying testing performed by private service companies, do not carry a fee.

On rail safety, the PSC said it maintains two rail inspectors funded through a DOT safety allocation and that the Federal Railroad Administration (FRA) handles enforcement and penalties when violations are found; the PSC’s inspections are intended to supplement FRA and carrier programs and have uncovered mechanical issues such as seized bearings in the past.

Personnel and pay: the PSC reiterated a request for targeted equity adjustments totaling $40,000 to retain several highly technical, existing employees; that request was not included in either governor’s budget. The commission also sought $25,000 for staff professional development (continuing legal education and technical training such as pipeline inspector courses) and described substantial turnover and role changes since 2019, noting many positions are specialized.

One‑time capital: commissioners described a federally supported capital request for a drone and LiDAR equipment — intended for coal reclamation and abandoned‑mine work overseen by the Office of Surface Mining. Christwin said the total project exceeds $200,000, and that the federal grant would cover the lion’s share: "They will pay the $50,000 capital cost, 100% for the drone, and then that LiDAR is a 155,000. They'll pay $149,420. So out of over $205,000, it's gonna cost us less than $56,100," Christwin said. The PSC said the same drone request appears in both governors’ budgets and that federal grant strings limit that equipment’s use to the grant purpose (reclamation/abandoned mine work).

Other items: the committee reviewed information technology and health‑insurance lines that were unchanged between the two gubernatorial budgets; IT was reported as the same in both proposals at roughly $6.4 million for the PSC’s biennial request. Lawmakers flagged a reduction in a motor‑pool/lodging inflation line in one budget and asked staff to confirm vehicle/ fleet rates. The PSC also described that operating costs represent only about 10 percent of the agency’s total budget and that many of its programs are largely federally funded (for example, abandoned mine land staff are 100 percent federal; other programs vary).

The committee did not vote on HB1008 or any budget line at the hearing. Members placed multiple items with a question mark to revisit, including the $380,000 intervention request and the un‑funded targeted equity and inspector requests. Christwin and PSC staff remained available to answer follow‑up questions.

Ending: The subcommittee closed discussion on HB1008 for the day and said it expects to revisit the PSC budget at a subsequent meeting; no formal action or vote was taken on the items discussed.