Delaware PSC: Commissioner Kim Drexler

The PUF team traveled to Dover, Delaware to visit the Public Service Commission, and the timing was perfect. For the PSC turned 70!

The five Commissioners are part-time, which is unusual in the regulatory world, and the Staff of about thirty, are kept busy. Some kindly took time from their hectic schedules to speak with PUF and let us know what makes Delaware special.

PUF: How did you become a Commissioner?

Commissioner Drexler: In 2015, then Governor Jack Markell called me and said he was looking for somebody to replace a Commissioner on the Public Service Commission. Jack, whom I have known since college, recalled that I started my banking career in the energy division of a money center bank.

I was in banking for thirty-four years. I started my career in New York at Manufacturers Hanover Trust Company, which is now part of J.P. Morgan.

When Governor Markell asked me if I would be interested in this position, I said I needed to learn a lot more about it. He assured me that I could get up to speed quickly. That's where it all started.

PUF: How has your finance background helped you at the Commission?

Commissioner Drexler: I'm numbers oriented. When I'm reading through a utility company's application, I'm always looking at the terms of the financing to understand the structure of the proposal. It plays to my background, having seen the other side with some of the utilities as clients of the bank over the years.

When I first became a Commissioner, I was still at the bank because we're part-time Commissioners in Delaware. I was working both jobs for two years. I did recuse myself from some of the decisions if Wilmington Trust was involved in a case.

My background has helped me understand the financial impact of decisions we make. Typically, I'm interested in the bottom line. What is the impact to the customer, to our fellow Delawareans?

PUF: What are the challenges of being a part-time Commissioner?

Commissioner Drexler: We have a couple of challenges. One of the challenges is we're not together every day, so we're concentrating a lot into our meetings, which are twice a month. We're coming from different parts of the state. We're a small Commission, with fewer utilities to regulate than Commissioners in other states.

PUF: What are some of the big issues the Commission is dealing with?

Commissioner Drexler: Our Commission deals with everything that has to do with our utilities, the electric, water, and gas companies. We're seeing a big shift in focus to alternative sources of energy. Electric vehicles, and electric vehicle charging are big issues today. And renewable energy sources as a whole, those are the ones that we're seeing a lot of.

PUF: Is the Commission political at all?

Commissioner Drexler: We are fortunate in Delaware. We set aside our differences and work together to find solutions for Delaware's problems. It is referred to as the Delaware Way. As far as political in terms of what our politic affiliations are, we just don't bring it in. We're very congenial. We're not a Commission that fights. We're not politically motivated. It is the Delaware Way.

PUF: How does the Commission help keep the economy strong in Delaware?

Commissioner Drexler: Utility costs are a fundamental of the economy. It's all fungible in that if we're approving higher rates, that's going to impact the economy overall, because it affects customers' budgets. 

Conversely, when we're approving a rate a decrease, that may be improving the economy by increasing disposable income. We're a part of what's happening in the overall economy. I'm always weighing the cost benefit in any case to determine what is in the best interest of Delawareans.

We want strong companies and we want residents who can afford their reliable, affordable, and safe energy. It's all part of the economy. We're making decisions that are affecting what companies and individuals are paying for their electricity.

PUF: How do you work with the other Staff here?

Commissioner Drexler: Our Staff is amazing. It's such a loss to our Commission when someone leaves Delaware for another job or to work outside the industry, because their knowledge is expansive and they're working hard on every issue. It's just not that political here. Everyone works together. It's amazing how hard they work. Interfacing with our Staff is so educational.

We have very strong ex parte rules in Delaware, meaning we do not discuss cases among the Commissioners before the public meetings. The Staff, including analysts and the attorneys here are a great resource. The Staff analysts provide tremendous value in terms of answering questions about the issues before us.

We have a strong ombudsman, Samantha Hemphill, who keeps us abreast of what's going on in the legislature. Those are the interactions that we have. We have a strong Staff. I'm impressed with how hard everybody works.

PUF: What are your aspirations as a Commissioner?

Commissioner Drexler: My term is up next year, and I hope to be reappointed. As a Commissioner, I hope to become a thought leader on renewable energy. I have participated on several panels at MACRUC, the Mid-Atlantic Conference of Regulatory Utility Commissioners, primarily regarding offshore wind. I enjoy that focus because I'm watching the progression of offshore wind projects in our adjoining states, and the potential for offshore wind in Delaware.

Several years ago, the Delaware Commission had approved an offshore wind farm that didn't come to fruition because of financing. But another company, or perhaps an iteration of that same company, is now developing offshore wind in conjunction with Maryland, which has an aggressive renewables goal. So, we're keeping our eyes on that.

We work closely with the other Exelon states to understand how Delaware fits into its regional approach. We want to work with our MACRUC Commissioners for the good of Delaware and the mid-Atlantic region.

Renewable sources of energy will come up more and more. The goals established by our state legislature, where we want to be in 2020, in 2025 and beyond, I want to be part of that revolution.

One of the unanticipated benefits of being a Commissioner is to work with MACRUC. I am delighted to serve as the liaison to the investment advisor for our MACRUC group, and work closely with our MACRUC Treasurer, Commissioner Joe Fiordaliso, from New Jersey.

I feel excited about the future of our Delaware utilities. Being a part of this state agency, every day I feel like we're helping people. That's a great feeling.

A Day at the Delaware PSC Conversations:

• Chair Dallas Winslow
• Commissioner Joann Conaway
• Commissioner Kim Drexler
• Commissioner Harold Gray
• Commissioner Mike Karia
• Raj Barua, executive director, Matt Hartigan, deputy director, Tom Walsh, deputy attorney general (assigned to PSC)
• Connie McDowell, senior regulatory policy administrator, Malika Davis and Pam Knotts, regulatory policy administrators
• Delaware PSC Celebrates 70th Anniversary!