Memorandum of Understanding between PSRC and IUB

At an official ceremony held in Yerevan on June 15, 2010, the Chairman of the Public Services Regulatory Commission of Armenia (PSRC) Robert Nazaryan, the Chairman of the Iowa Utilities Board (IUB, USA) Robert Berntsen, and Manager of International Programs at the National Association of Regulatory Utility Commissioners (NARUC, USA) Chris Mahon signed a Memorandum of Understanding, marking the beginning of a new partnership whereby the IUB will work with the PSRC in developing its institutional and decision-making capacities in market-based regulatory processes. In attendance at the event were USAID/Armenia Mission Director Jatinder Cheema, representatives of the PSRC, Iowa Utilities Commission, and USAID, informs the USAID office in Yerevan.

Through the Energy Regulation Partnership Program, a regional project implemented through NARUC, USAID is engaged in a partnership to share experience and information between the PSRC and the IUB while fostering professional links between both agencies. This partnership will allow the Armenian regulators to have broad access to the U.S. regulatory environment and enable the IUB members to learn new techniques and methodologies as well as gain an understanding of the regulatory practices in the broader Caucasus region.

“The Government of Armenia has adopted a policy to liberalize and attract private sector investment into the nation’s electricity and gas supply industries in order to modernize it. This will help ensure that sufficient electric power is made available to support Armenia’s economic development in the 21st Century. But market liberalization alone isn’t enough. An important step forward in promoting investment in Armenia’s critical infrastructure is the strengthening of the Public Services Regulatory Commission. A technically proficient, transparent, and independent regulatory authority helps all of society’s stakeholders by ensuring provision of quality services and charging fair rates to consumers,” Dr. Cheema said at the signing ceremony. She expressed hope for valuable cooperation between the two parties, noting that USAID will continue to help Armenia strengthen its energy security and integrate into the electricity grids of the Caucasus to generate export earnings.

The Memorandum of Understanding signing event formalizes the partnership, and as such it is an important part of the introductory four-day workshop, held from June 14-17, 2010 in Yerevan. The workshop will focus on broad fundamentals of regulation, such as authority, autonomy, accountability, structure, and capacities. Additionally, the delegates will discuss tariff design, building and sustaining relationships among sector stakeholders, public participation in the regulatory process, demand side management, and other timely issues. The partners will also prepare a fluid work plan which will identify additional topics of mutual interest, and will be updated periodically to reflect the changing environment of the energy regulation and legislation in both countries.