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Questions and Answers About Government Citizen Watchdog Groups

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.  CUBs can also be set up (using the pamphlet method described below) to watch over other business sectors, and also government sectors.

WHAT IS THE DIFFERENCE BETWEEN CUBs AND OTHER CITIZEN GROUPS?
The key to CUBs is the right, by law, to enclose a pamphlet in utility companies' billing envelopes.  This pamphlet informs consumers about the CUB and invites them to join for a nominal annual membership fee ($10-15).  "Piggybacking" the CUB pamphlet with the utility bills is a cheap and effective way to reach ratepayers.  Laws can also be passed creating citizen watchdog groups that have the right to enclose their appeal pamphlet in the mailings other business sectors (banking, insurance, telecommunications, airlines) send to their customers and investors, and also to create citizen watchdog groups over government sectors (spending, ethics, health care) that have the right to enclose their appeal pamphlet in the mailings that government institutions send to citizens (in tax-form envelopes, health care-related mailings etc.)

WHAT COULD CITIZEN WATCHDOG GROUPS OVER GOVERNMENT SECTORS DO?
Every year, 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.  Citizen watchdog groups for government sectors formed using the CUB pamphlet method would use the same strategies and tactics to advocate their interests.

WHO WOULD CONTROL CITIZEN WATCHDOG GROUPS FOR GOVERNMENT SECTORS?
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.  Citizen watchdog groups over government sectors would similarly be run by a board elected from amongst members.

HOW WOULD CITIZEN WATCHDOG GROUPS FOR GOVERNMENT BE FUNDED?
CUBs are funded by voluntary contributions from ratepayers.  CUBs do not receive any government or utility funding.  Citizen watchdog groups over government sectors would be funded in the same way.

HOW WOULD CITIZEN WATCHDOG GROUPS FOR GOVERNMENT BE 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.  Citizen watchdog groups over government sectors (spending, ethics, health care) would created by the government passing a law allowing the group to enclose its pamphlet in the mailings the government sends to citizens (for example, tax-form envelopes, health-care related mailings).

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.



For more details, go to Democracy Watch's Citizen Association Campaign