The report incorporates many of the recommendations of the Legislative Audit Council and recognizes many of the shortcomings cited in a legislative panel's review of the agency two years ago. It will increase the qualifications of commission members and will sharply curtail the likelihood of informal communications between the commission and the regulated community. Legislative nepotism has been removed as a factor in the selection process for the well-paid commission seats.

And the PSC staff will see the agency restructured to provide for an objective and informed representation of consumer interests as rate cases are argued before the commission. There will be greater resources to counter the arguments of well-heeled utilities on rate issues than under the current system, in which the perennially under-funded Consumer Affairs Commission staff has represented the consumer.

Terms for almost all sitting commissioners expired in 2002, and they have remained in office as the Legislature wrangled over the details of a reform bill. A compromise was reached after the committee agreed that current applicants shouldn't be subject to the new qualifications for commissioners, nor by its ban on nepotism.

That decision may have been necessary to reach a resolution, but it was unfortunate nonetheless. Its effects could be felt far into the future if the next round of commissioners, who have been exempted from the requirements of the reform bill, seek re-election for subsequent terms. Lawmakers should demonstrate their seriousness about improving the standards of the PSC by selecting the candidates with the highest level of education and experience pertinent to the job.

Approving a meaningful reform of the Public Service Commission is essential to giving state consumers a fair shake on utility rate requests. Cumulatively, it can mean savings of millions of dollars for consumers when rate requests for electricity, natural gas and telephone service are enacted.

As the Legislature proceeds to vote on the conference bill, it also should send a message to the state in its selection of commissioners, by picking candidates who are equipped by education, experience and temperament to fairly judge rate requests. That message should also include a strong statement against nepotism.