Questions and Answers About Citizen Utility Boards
WHAT IS A
CITIZEN UTILITY BOARD (CUB)?
A Citizen Utility Board (CUB) is an
independent, non-profit,
organization of residential utility ratepayers. CUBs exist in
four states
in the U.S., and the first CUB was organized in Wisconsin in
1979. CUBs
advocate for fair telephone, cable TV, electric, gas and water rates,
and
sensible energy policies before utility regulatory commissions, the
government
and the courts. Individual CUBs can be set up for each utility or
one CUB
can be set up to advocate for some or all utility ratepayers together.
WHAT IS THE
DIFFERENCE BETWEEN CUBs AND OTHER RATEPAYER
GROUPS?
The key to CUBs is the right, by law, to enclose a
flyer in
utility companies' billing envelopes. This flyer informs
consumers about
the CUB and invites them to join for a nominal annual membership fee
($10-15).
"Piggybacking" the CUB flyer with the utility bills is a cheap
and effective way to reach ratepayers.
WHAT DO CUBs DO?
Every year, the utility companies spend millions to
advocate
for higher utility rates. Ironically, the cost of the utilities'
advocacy
is passed on to consumers through their utility bills. CUBs give
ratepayers
a way to fight back. By pooling their resources, CUB members hire
their
own professional staff of lawyers, lobbyists, and organizers to
challenge
unfair rate hikes.
WHO CONTROLS CUBs?
Ratepayers who join a CUB control the group through
the election
of regional delegates and its board of directors. The board hires
the CUB's
professional staff and determines the group's policies. CUBs are
democratic
organizations.
HOW ARE CUBs
FUNDED?
CUBs are funded by voluntary contributions from
ratepayers.
CUBs do not receive any government or utility funding.
HOW ARE CUBs
CREATED?
CUBs can be created by an act of the legislature or by
order
of the utility regulatory commission. Some action by the
government is
usually needed to allow the CUB access to the utilities' billing
envelopes.
WHERE HAVE CUBs
BEEN ESTABLISHED?
There are now CUBs in full operation in Wisconsin,
Illinois,
Oregon, and a local CUB called UCAN in San Diego. The Wisconsin
and Illinois
CUBs were established by the state legislatures in 1979 and 1983
respectively.
The Oregon CUB was approved in a binding referendum in November
1994. San
Diego's UCAN was set up by order of the state Public Utilities
Commission
in 1983.
WHAT IS THE TRACK
RECORD OF CUBs?
CUBs have been very successful. Their membership
and savings
to consumers is as follows: Wisconsin CUB: 60,000 members and savings
of
over $100 million; Illinois CUB: 170,000 members and over $6 billion in
savings; Oregon CUB: 10,000 members and $124 million in savings; UCAN:
24,000 members and $265 million in savings.