This document discusses social media use in the utility industry and the legal and regulatory considerations. It begins by explaining why social media presents both opportunities and risks for regulated industries. It then provides an overview of how utilities are currently using social media platforms like LinkedIn, Facebook, Twitter, and YouTube. The document outlines five sources of authority that govern social media use in regulated industries: law, regulatory codes of conduct, platform terms of service, social media policies, and best practices/netiquette. It then discusses specific legal and regulatory trends utilities should be aware of regarding issues like employment, advertising, privacy, and more. The key takeaways are to be transparent, differentiate personal from professional use, ensure policies apply to vendors, and

1. Social
Media In the
Utility
Industry
CarolynElefant.com
May 2013

2. Why social media in
regulated industries
is like alcohol at a
networking event
A catalyst for facilitating
conversation, connection
and fun…
…or a recipe for disaster?

3. The Formula:
User-generated content + 3rd party platform =
LOSS OF CONTROL

4. Social Media &
Utilities
HOW are
utilities using
social media?
WHAT legal &
regulatory
considerations
apply?
Do’s, Don’ts &
best practices
for utilities on
social media.

5. What’s driving the adoption of
social media by utilities?
•Global/mobile
•Rise of the digital natives
•Customer service & connection

6. Source: LEXIS search social media 2009-2013

7. Breakdown of
Utility Social
Media Use In
Categories
(2009-5/2013)

8. LINKED IN

9. Facebook

10. TWITTER

11. PINTEREST

12. YouTube

13. Mobile Apps

14. GAMIFICATION

15. Law
Regulatory/Codesof
Conduct
Platform TOS
Social Media Policy
NETIQUETTE
5sourcesofAuthorityGoverningSocial
MediainRegulatedIndustries

16. LAW TRENDSSPECIFIC TO UTILITIES *
EMPLOYMENT
• Employee SM background checks & accuracy - employers face liability for
inaccuracies (potential FCRA violations - See
http://www.nytimes.com/2012/06/13/technology/ftc-levies-first-fine-over-internet-data.html
• Access to employee passwords/monitoring (Many states such as MD prohibit
employer from seeking PWs)
• Right to organize v. right to organization: NLRB/Costco case - September 7,
2012 - social media policy goes too far) “be aware that statements posted electronically
(such as to online message boards or discussion groups) that damage the company,
defame any individual or damage any person’s reputation or violate the policies outlined in
the Costco Employee Agreement, may be subject to discipline, up to and including
termination of employment.”
• Mobile liability (overtime and off-site negligence on the job)
Note: Section does not cover copyright, IP, owership of SM accounts or other issues related to
general business functions. See Power of Soc Media, ELJ article for further details

17. LAW TRENDS SPECIFIC TO UTILITIES
ADVERTISING/PRIVACY
• FTC GreenGuides (Oct. 2012) re: certifications
•Must disclose connection w/certifying agencies
•Must have substantiation for claims even if certifying agency has
approved it
•FTC regulation re: blogging and chatroom disclosures
•FTC guidance on mobile use (August 2012) and mobile payments
(http://www.ftc.gov/opa/2013/03/mobilepymts.shtm) (includes guidance on
protecting customer data and process for bill dispute resolution. Will PUCs
weigh in?)
•FTC amends Child Online Privacy Protection Rule (parents gain more
control) (December 2012).

18. REGULATORY
Rate recovery - Lobbying/advertising v. education (See Potomac-Appalachian Transmission
Highline, LLC, 140 F.E.R.C. P61,229 (hearing over costs for tmission line challenged as
impermissible lobbying; costs include websites)
Record keeping - Regulatory record keeping requirements (tools for capturing social meeintg)
Crisis communication/safety - Commissions beginning to require social media as part of crisis.
What are appropriate metrics? (frequency of tweets, availability of person to respond, utility
response to persistent complaints and photos?)
Universal service - Concerns that not all users can access SM (though statistics show
otherwise)
Utility liability for employee misuse - 2013 Cal. PUC LEXIS 120 (PGE superior infiltrates anti-
smart grid group as “Ralph”)
Privacy - data collection; public responses, online photos of service
Data ownership - big data is a valuable asset. Who owns it? How can big data be used for
demand response and prediction?

19. REGULATORY
•Issues regarding platform TOS
• Importance of notifying users of platform TOS
•Familiarity with platform TOS to avoid liability
•Special rules on contests
•Prohibitions on spam (Twitter suing spammers)
Platformtermsofservice

20. Platformtermsofservice:Tools
TO TRACK TOS CHANGES

21. REGULATORY
•Significant for risk management, BUT
•Must comply with applicable law (e.g., NLRB)
•Must comply with applicable regulatory requirements
•Should not reinvent the wheel (tie in existing codes of conduct and
records management practices; don’t re-write)
•Broad principles with examples better than platform specific regulation
(since platforms are always changing)
•Be updated regularly for new developments (e.g., mobile)
•Must be accompanied by adequate training, reputation monitoring and
(potentially) cyber-insurance if no existing coverage
Platformtermsof
service
SocialMediaPOlicy

22. REGULATORY
SocialMediaPOlicy
Case: Matter of CPUC Investigation of PG&E Re: Anti-Smart
Metering Groups, 2013 Cal. PUC LEXIS 120 - cites PG&E
social media policy as guideline

23. NETIQUETTE
Best summarized
as don’t be this

24. TakeAwAys
DO be transparent
DON’T reinvent the wheel
DO differentiate between personal
& professional use
DO ensure that social media
policies apply to vendors
DO remember that SM policy is
the START, not STOP -
monitor & revisit policy
DO be an early adopter - risk can
be mitigated, lost opportunity
can’t

25. CONTACT:
Carolyn Elefant
LawOfficesofCarolynElefant
2200 Pennsylvania Ave NW 4th Flr.
Washington DC
202-297-6100
www.carolynelefant.com
@carolynelefant, @nxtgenenergylaw
www.linkedin.com/in/Carolynelefant
http://pinterest.com/myshingle/