Well-Traveled Chairman

The MPSC’s Orjiakor Isiogu expresses a passion for reliable energy, customer service, and the Upper Peninsula pasty.

Far from his native land, a Nigerian-born traveler has quietly assumed the top job of the state agency that is being called upon to play an increasingly vital role in Michigan’s economic health.

Named chairman of the Michigan Public Service Commission (MPSC) by Gov. Jennifer Granholm in September, Orjiakor Isiogu (Or-gee-a-core ee-sea-AW-goo) presides over a staff of accountants, engineers and attorneys responsible for ensuring that our electric and gas utilities, highway transport system, and telecommunications firms provide reliable and safe service at reasonable prices.

With the state’s economy struggling from cuts in the auto industry and the loss of high-paying jobs, and electric utilities trying to meet ever-increasing demand with aging power plants, the MPSC’s top regulator has to balance low rates with future energy needs and the need to grow jobs.

MPSC Chairman Orjiakor Isiogu The MPSC is where the work gets done that turns state law into the rates homeowners and businesses pay for electricity, gas, telecommunications and trucking. It’s where utilities wanting to build power plants come to get construction costs covered in rates. And, it’s where state laws that will be passed to push renewable energy will get implemented.

Isiogu has his work cut out for him.

But, given the journey the new chairman of the three-member Commission took to get here, the relatively short move into his new south Lansing office must seem much less daunting. Almost 30 years ago, he traveled from Nigeria to attend Austin Peay State University in Tennessee.

The son of an Anglican minister father and an enterprising mother and the last of 12 children, Isiogu was 20 when he got to Tennessee. His mother wanted him to get a college education because she only was able to reach third grade. He proudly says she made college possible for him by becoming a successful entrepreneur in Lagos, Nigeria.

“My father prayed for the money; my mother made it,” he says.

Austin Peay turned out to be a testing ground where Isiogu tried medicine and engineering as career paths. But those didn’t satisfy him, so he settled on law, a choice inspired by attorneys who helped negotiate the end of British colonial rule in Nigeria in 1960.

Encouraged by a friend to come to Detroit, Isiogu got a bachelor’s degree in political science and a law degree from Wayne State University. He joined the Michigan Attorney General’s office in 1989 as an assistant attorney general in the Special Litigation Division, where he represented the AG before the MPSC, the Federal Communications Commission, and state and federal courts. He served under three Attorneys General: Frank Kelley, Granholm, and Mike Cox, leaving in 2003 to become director of the MPSC’s Telecommunications Division.

Isiogu is passionate about the MPSC mission.

“Our culture here is to give consumers value for their money,” he says. “The Commission is one place they can come to get issues resolved.”

He encourages consumers to call the Commission as soon as they have a problem not solved by a phone company, utility, or trucking firm. “It’s harder to solve if you wait,” Isiogu says.

One of his goals is to hasten the development of broadband access in rural Michigan, which has one of the lowest penetrations of internet broadband service in the country.

“It’s a priority for us to narrow that gap,” Isiogu explains. “We’re encouraging more electric utilities to explore broadband-over-power lines as a way to do that.”

That technology, which uses electric lines to deliver fast internet access to electric users, is being tested by a couple of Michigan utilities, including a cooperative, Midwest Energy, with promising results.

Other concerns touch closer to home, as Isiogu remembers his childhood in Nigeria, where the infant mortality rate was extremely high, due in part to indoor air pollution from burning fuels for cooking and heat.

“So I have a real concern about indoor pollutants,” he says. He cautions consumers against using open-flame space heaters without adequate ventilation.

Isiogu is married and has a grown son and daughter from a previous marriage. He likes to travel, read, see movies, and collect political memorabilia, old coins and first edition books—which means he goes to a lot of estate sales. He’s fond of Michigan and has traveled the state extensively, sometimes for his job, and sometimes to explore its nooks and crannies.

“I feel blessed I can do that,” he says.

His mother-in-law lives in Manistique and his trips there have led him to appreciate the Upper Peninsula’s famous pasty. “It’s a complete meal,” he says. “Everything you need is in there.”

Now that’s a journey: from Nigeria to the U.P. and its pasties.

Country Lines asked Orjiakor Isiogu some questions specific to the role and operation of the MPSC.

Country Lines: What’s the role of the Public Service Commission in Michigan’s overall energy picture?

Chairman Isiogu: The Michigan Public Service Commission’s role is to establish fair and reasonable rates for the services it regulates and to administer fair terms and conditions of service for customers. The Commission is also responsible for implementing energy laws subject to its jurisdiction. It is a responsibility that my fellow Commissioners and I take very seriously. There isn’t a day that goes by that we are not striving to meet these important goals.

How do you think typical residential customers should think of the MPSC?

With every action it takes, the Public Service Commission keeps—first and foremost—the public interest in mind. Simply put, that means my fellow Commissioners and I want to make sure that customers have a reliable source of energy at the lowest possible price. We spend a lot of time communicating with utility customers—from holding consumer forums to media appearances—to make sure customers understand the utility issues that affect them.

The previous chair of the Commission promoted the 21st Century Energy Plan as a way for Michigan to meet future energy needs in a responsible fashion. How do you feel about that plan?

The 21st Century Energy Plan provided us with excellent information that we can use as the state formulates various ways to meet the growing electric needs of Michigan. The Michigan Legislature currently is looking at the Plan’s various recommendations—from establishing a renewable portfolio standard to changing the process used when utilities seek to build new baseload generation.
The PSC looks forward to implementing the various laws that may be enacted in the near future. The result will be better electric reliability, the creation of new, high-tech jobs in the energy field, and a cleaner environment—all important things as the state seeks to move forward.

What are the major challenges facing the MPSC over the next few years?

The Commission is always concerned about increasing energy reliability. That will continue to be a challenge in the coming years, as aging electric plants are retired and electric demand grows. The Commission now has five active electric workgroups dedicated to various reliability issues—from net metering to demand response to the smart grid.

In particular, I believe there will be continued interest in renewable energy sources by both customers and utilities. It is no longer considered unrealistic to have a certain percentage of our electric needs supplied by renewable sources.
Renewable energy will provide Michigan with a more diverse fuel mix, making us less vulnerable to volatile energy markets, and it results in a cleaner environment. This will be especially important if, as expected, we see some form of a carbon tax enacted at the federal level.

What are the major challenges facing the electric utility industry over the next few years?

Energy issues are dominating the headlines. From renewable energy and increasing energy demands and prices, to energy efficiency, it is fair to say that energy is once again “cool.” These issues will challenge the electric industry to increase electric reliability, while meeting the increased demand for generation supplied by renewable energy sources and providing customers with practical information on how to be more energy efficient. It will be exciting to see where all this will lead in the coming years. The use of high-tech tools, such as “smart meters,” will help both utilities and customers meet these challenges.

Some people are advocating severe restrictions on the use of coal to generate electricity in Michigan, even going as far as calling for a ban on new coal plants. Can Michigan get the power it needs for the future without coal?

That is the question now under way throughout the state and the country. There is no doubt that coal has provided us with a reliable source of energy, but many people are concerned about its effect on the environment. The 21st Century Energy Plan foresaw the continued need for coal-generated electricity in the near term. And the Michigan Department of Environmental Quality is also involved with the air quality permitting process. So, it remains to be seen what role coal will have in Michigan’s electric future.

What are the alternatives? Is nuclear one of our options?

Nuclear energy is enjoying a lot of interest right now from the electric industry and some environmentalists. But even its proponents realize that the problem of what to do with the spent fuel remains. Clearly, utilities and others expect there to be a nuclear renaissance. We have to examine all our options, and clearly nuclear is one of them.
In addition to generation, we also have to look into improving our transmission capability.

As you know, electric co-ops aren’t regulated in most states and Michigan’s co-ops are seeking legislation that would allow them to opt out of rate and billing regulation by the MPSC in favor of oversight by member-elected boards of directors. What do you think about this change?

The Commission has not taken a position on this bill. As a creature of statute, the Commission’s job is to implement the law.

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