Incentivizing Public Input: an Examination of Intervener Compensation

This post is written by and posted on behalf of Mary Palmer, Director, Energy Equity and Inclusion, Rhaman Johnson , Project Manager, Standards and Interoperability, and Drake Moran, Senior Analyst, Research & Industry Strategy.

Intervener Compensation

Many electric power industry leaders and community advocates aspire to implement energy equity programs and strategies that integrate into existing frameworks and resonate with community values. That's why this summer SEPA facilitated a focus group series to discuss critical topics including Intervenor Compensation. 

Public input is the cornerstone of a thriving democracy, but resoundingly we hear people say that there is an opportunity to improve the public participation processes used to develop and implement energy policies, programs, and technologies. Since SEPA is focusing on developing strategies to bridge the gap between utilities and regulators and the communities they serve, we facilitated a focus group series to discuss Intervenor & Stakeholder Compensation with utilities, regulators, and energy equity advocates. In this conversation, it became clear that although this policy area is relatively new and not widely implemented, stakeholders are strongly interested in using it as a tool to facilitate representative feedback during proceedings. 

Focus Group Findings: Program Criteria, Evaluation, and Reporting

Municipalities, utilities, and groups that are authorized by the government to regulate public utilities and public-service corporations host meetings to solicit feedback from the public about proposed policies and programs. There is resounding criticism of these feedback sessions by many, claiming amongst many things that they lack proper representation of the communities they serve. For utility employees, energy lawyers, corporate representatives, and advocacy groups - it’s their job to participate in these proceedings! For most community members, however, it’s much more difficult to sacrifice time and have their voices heard. It is the intention that intervenor compensation will emerge as a pivotal mechanism to foster more inclusive participation during energy policy development by compensating other stakeholders for their involvement. This enhances the effectiveness and inclusivity of policy development and ensures that diverse perspectives are heard and integrated into policymaking. 

Our conversation centered around four key questions: 

• Who should be eligible to receive stakeholder compensation? 

• How does one demonstrate their eligibility? 

• How much and for what activities should participants be compensated?

• How do we move forward with equitable intervenor compensation?

Who Should Be Eligible for Compensation?

Eligibility for compensation should be broad and inclusive to ensure that all relevant stakeholders can participate without financial strain. The focus group discussed including not only subject matter experts but also residents from environmental justice communities, residential or small business customers, and groups traditionally underrepresented in regulatory proceedings. Flexibility in eligibility criteria is essential to include vulnerable populations, such as immigrant groups or moderate-income families, who are often overlooked in these proceedings.

How Does One Demonstrate Their Eligibility?

Eligibility can be determined using various criteria that consider both socioeconomic and geographic factors. Some suggested requirements include:

• Demonstrating Financial Hardship: This can be shown through income verification or by proving eligibility for other government assistance programs.
• Residing in an Environmental Justice Community: Using geographic and demographic data to identify communities disproportionately affected by environmental policies.
• Being a Residential or Small Business Customer: Focusing on those directly impacted by utility regulations and rate changes.
• Subject Matter Experts: Compensating those who are experts on specific topics can result in more impactful policies and programs. 

How Much And For What Activities Should Participants Be Compensated?

Determining the compensation amount is critical for ensuring meaningful participation. The group suggested that compensation could be tiered based on the level of involvement and the nature of the contribution:

• Expert Testimony: Higher compensation for stakeholders providing detailed technical input or analyses.
• Community Feedback: A fixed stipend for community members participating in discussions and providing general feedback.
• Documentation and Participation Costs: Reimbursement for expenses incurred, such as travel or childcare, which are necessary to participate in the proceedings.

These structured compensation plans facilitate greater involvement from a diverse range of stakeholders and ensure that their participation is valued and sustained.

Moving Forward with Equitable Intervenor Compensation

Establishing clear and fair intervenor compensation mechanisms can be an effective strategy for democratizing energy policy development and ensuring that all voices can contribute meaningfully. Intervener compensation isn't a one-size-fits-all endeavor. This approach may be adapted to the region's needs.

Through our focus group discussions, it became evident that in many states, compensating diverse stakeholders enriched the dialogue and strengthened the resultant policies by reflecting a wider array of community interests and concerns. 

As we move forward, the challenge will be to evaluate the outcomes and impacts of the compensation programs and recalibrate to ensure they are in fact both equitable and effective. For example, some of the requirements for expertise and documentation may help ensure feedback is actionable while simultaneously discouraging and/or disqualifying participation from the parties that the program was intended to benefit. Focus group participants expressed a strong interest in establishing clear guidelines and structures for compensation that not only meet immediate needs but also ensure the sustainability and effectiveness of stakeholder engagement over time.

Conclusion

Energy Equity and Inclusion is one of SEPA’s six critical focus areas. SEPA provides tailored, actionable guidance to effectively reform systems and operations that embed energy equity while actively engaging the communities they serve. To further our work advancing energy equity, SEPA is excited to announce an upcoming series of Energy Equity Insight Briefs. These briefs will cover a range of energy equity topics and are designed to provide actionable insights to electric utilities, policymakers, technology providers, and communities. Stay tuned for these publications, and if you’re interested in contributing, learning more, or working with SEPA on these issues, we encourage you to contact SEPA’s Director of Energy Equity and Inclusion, Mary Palmer, at [email protected].