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1 State Activity Report: State Election Update November 5, 2014 The 2014 Midterm Elections resulted in a wave of change from the U.S. Congress to governors offices to state legislatures in several key states. For the first time since 2006, Republicans secured control of the U.S. Senate, flipping seats in Arkansas, Colorado, Iowa, Montana, North Carolina and South Dakota. Republicans also easily maintained control of the U.S. House of Representatives, netting at least 13 seats. Of note, last night Republicans picked up or held several key governors seats. This is significant for two reasons first, changes in the governor s office will impact the complexion of commissions in those states where commissioners are appointed. These results are likely to influence energy policy in states where party control has changed, as well as nationally. Below we have provided you with a breakdown of state election results from among governors, attorneys general and state legislatures as well as an overview of the impact of those results on public utility commissions and energy policy overall. Governors Attorneys General State Legislatures Public Utility Commissions Ballot Initiatives Governors Thirty-six gubernatorial seats were up for election in Of those seats, 29 were being vied for by incumbent candidates and 21 were held by Republicans. Incumbent Republican governors won tight races in Wisconsin, Georgia, Michigan, Maine and Florida. Of particular interest, Republicans picked up seats in Arkansas, Illinois, Maryland and Massachusetts, while Democrats picked up a seat in Pennsylvania. Following last night s election, Republicans now hold governor s seats in 31 states, while Democrats hold seats in 16 states. Three states are still unknown at this time.

2 Below we provide you with additional information and a map showing gubernatorial party control as it currently stands. Notable Races: Illinois: Republican Bruce Rauner beat out incumbent Democratic Governor Pat Quinn Maryland: Republican Larry Hogan beat favored Democrat Anthony Brown Arkansas: Republican Asa Hutchison secured victory over Democratic Congressman Mike Ross Massachusetts: Republican Charlie Baker beat out Democrat Martha Coakley Pennsylvania: Democrat Tom Wolf unseated incumbent Republican Governor Tom Corbett Still to Watch: Alaska: Independent Bill Walker is currently leading incumbent Republican Sean Parnell Connecticut: Incumbent Democratic Governor Dan Malloy is up in most polls and is likely to be the victor Vermont: The legislature will ultimately decide the results of the governor s race Election results: State Result Alabama Bentley Alaska Arizona Ducey Arkansas Hutchinson flip California Brown Colorado Hickenlooper Connecticut Florida Scott Georgia Deal Hawaii Ige Idaho Otter Illinois Rauner flip Iowa Branstad Kansas Brownback Maine LePage Maryland Hogan flip Massachusetts Baker flip Michigan Snyder Minnesota Dayton Nebraska Ricketts Nevada Sandoval New Hampshire Hassan New Mexico Martinez New York Cuomo Ohio Kasich Oklahoma Fallin Oregon Pennsylvania Wolf flip Rhode Island Raimondo South Carolina Haley South Dakota Daugaard Tennessee Haslam Texas Abbott Vermont Wisconsin Walker Wyoming Mead Party control at the gubernatorial level:

3 As noted above, the results for Alaska, Connecticut and Vermont have not yet been finalized. Attorneys General Though the Republican wave did not hit attorneys general races quite as strongly, the GOP was able to flip an open seat in Arkansas and one in Nevada, edging out Democrats previous lead in AG seats. Going into election night, Democrats held 26 AG seats while Republicans held 24. Both parties were able to hold seats that were deemed to be competitive including a Republican-held open seat in Colorado and incumbent seats in Florida, Georgia and Michigan. The GOP was also able to hold seats in toss-up races for open seats in Arizona and Wisconsin. Republicans now hold the AG office in 27 states to Democrats 23 states. Below we provide you with more detailed information and a map showing AG party control as it currently stands. Election results: State Result Alabama Strange Arizona Brnovich Arkansas Rutledge flip California Harris Colorado Coffman Connecticut Jepsen Delaware Denn Florida Bondi Georgia Olens Idaho Wasden Illinois Madigan Iowa Miller Kansas Schmidt Maryland Frosch Massachusetts Healey Michigan Schuette Minnesota Swanson Nebraska Peterson

4 Nevada Laxalt flip New Mexico Balderas New York Schneiderman North Dakota Stenehjem Ohio DeWine Oklahoma Pruitt Rhode Island Kilmartin South Carolina Wilson South Dakota Jackley Texas Paxton Utah Reyes Vermont Sorrell Wisconsin Schimel Party control at the Attorney General level: State Legislatures Thousands of state legislators faced races in the 46 states that held state legislative elections this year. In fact, 87 of 99 state chambers held midterm elections in Going into election night, it was thought that 70 of those chambers were likely to remain in control of the incumbent party with the possibility of flips in about 20. As well, going into last night, Republicans controlled the majority in both chambers in 26 states to the Democrats controlled majorities in 18 states. Notably, at this time, Republicans have picked up the following chambers: Colorado Senate Minnesota House Nevada Senate Nevada Assembly

5 New Hampshire House New Mexico House West Virginia House Outright majority in Washington Senate Outright majority in New York Senate Republicans maintained control in the following: Arizona Senate Arkansas House Arkansas Senate Iowa House Michigan House New Hampshire Senate Pennsylvania House Pennsylvania Senate Wisconsin Senate Election results are still pending in the Colorado House and Maine Senate and some polls are still showing a tie in the West Virginia Senate. Below we provide you with a map representing party control of state houses going into States with party control split between the two houses are purple. The results of Maine s state legislative elections are not conclusive at this time. Note: Nebraska is technically a bipartisan legislature.

6 Public Utility Commissions Public utility commissions play perhaps the most critical role in shaping how utilities conduct their business. Though in theory, PUCs are supposed to function as independent regulatory bodies, commission ideology and action may be influenced by external factors such as whether commissioners are appointed by their governor or elected. In 36 states, commissioners are appointed by their respective governors, while in 14 states commissioners are elected. In South Carolina and Virginia, commissioners are elected by their legislative bodies. Clearly, changes in party control in governors offices will influence the make-up of commissions over the next few years. In particular, we will be keeping an eye on commissions in the following states where the governor s seat has changed party control and commissioners are appointed. Arkansas Chair Colette Honorable (term ends 2017), Olan Reeves (2015), Elana Wills (term ended in 2013) Illinois Chairman Doug Scott (2019), John Colgan (2015), Ann McCabe (2017), Miguel del Valle (2018), Sherina Maye (2018) Maryland Chairman Kevin Hughes (2018), Anne Hoskins (2016), Harold Williams (2016), Lawrence Brenner (2015), Speakes-Backman (2014) Massachusetts Chair Ann Berwick (2015), Jolette Wesbrook (2017), Kate McKeever (2015) Pennsylvania Chairman Rob Powelson (2019), John Coleman (2017), James Cawley (2015), Pamela Witmer (2016), Gladys Brown (2018) As well, a limited number of Public Utility Commissioners faced elections in Including Alabama, Arizona, Georgia, New Mexico and the Texas Railroad Commission. Alabama Commissioners Terry Dunn and Jeremy Oden were up for election this year. Oden won his primary and was the likely victor in his race. Dunn lost in his primary and Chip Beeker was the Republican candidate expected to take his place. Arizona Commissioner Gary Pierce and Commissioner Brenda Burns are both facing term expirations in 2015 and did not seek re-election. Tom Forese (R) and Doug Little (R) won their respective races for the two open seats. Georgia District 4 Public Service Commissioner Bubba McDonald (R ) was the only incumbent to face a primary challenge. McDonald easily overtook two challengers to secure the Republican nomination last May and defeated his Democratic challenger in the general election yesterday. As well, Commissioner Tim Echols defeated his opponent. New Mexico Lynda Lovejoy beat out sitting Commissioner Theresa Becenti-Aguilar in a primary race earlier this year. No Republicans challenged that general election. Commissioner Patrick Lyons ran and won an uncontested primary earlier this year and no Democrats filed to challenge him. Ben Hall ran and won uncontested in his primary. He faced Sandy Jones (D) in the general election.

7 Texas Railroad Commission Ryan Sitton (Rep), Steve Brown (Dem), Mark Miller (Ind), and Martina Salinas (Gre) faced off in the general election for Commissioner slot. Ryan Sitton, an oil and gas engineer from Houston, was the victor in that race. Ballot Initiatives Voters considered thousands of state and local ballot initiatives last night. We wanted to bring you updates on just a few relating to hydraulic fracturing activity. California o Two counties in California passed ballot measures banning fracking and other unconventional oil drilling, while another rejected a similar measure. Bans were passed in San Benito County (57.4 percent of the vote) and Mendocino County (67.18 percent in favor). A similar measure failed in Santa Barbara County at a margin of 37 to 62 percent. Ohio o Four hydraulic fracturing bans were on ballots in Ohio. The only to pass was Athens charter amendment which enumerates residents rights to clean air and water. Texas o Voters in Denton, Texas approved a ban on hydraulic fracturing. The ban passed with 58.6 percent of the vote in unofficial returns and the move sets an odd precedent in the biggest energy producing state in the country. Ironically, Republicans won every statewide elected office in Texas on election night. Midterm elections at the state level have the potential to greatly influence how states move on key energy issues in the coming years. In particular, changes in party control in key governor s seats are likely to impact emissions trends and climate policies in some of the largest GHG-emitting states around the country. Though climate change or other energy issues did not necessarily rise to the top in many races or debates, the outcomes from yesterday s elections will have large implications for how states react to issues such as the U.S. EPA s proposed 111(d) rule. In fact, several of the governors that were elected or re-elected last night have already vowed to fight EPA s proposed rule. Republican Governor-elect Asa Hutchinson, for example, vowed in a debate earlier this year to fight EPA for the burden the rule places on Arkansas coalfired power plants. That is all to say that we will be keeping a close watch on how these election outcomes influence energy policy in the states into the future. Kyle Rogers Vice President, Government Relations Ashley Duckman Director, State Affairs krogers@aga.org asmith@aga.org American Gas Association 400 N. Capitol St., NW Washington, DC

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