It is surely no accident that the term “bureaucracy” carries a crust of derision in every known language. And yet, with the possible exception of the TSA, most individuals within each bureaucracy normally attempt to do well and want to be liked.

Against all odds, some succeed. For example, I’ve found the state auto license bureau in Bozeman to be remarkably helpful. In my experience, and quite remarkably, the same holds for the local tax assessment office. Other than accidents of personality, I have no explanation for these fortunate outcomes.

Public utilities have an especially difficult time maintaining public support and approval. This is despite serious efforts to do so. Ironically, when dealing with individuals within these organizations, I normally find competent and helpful individuals at every level. Yet at the organizational level, they often fail to please. Here’s an example.

A few minutes after 8:00 AM on March 5th of last year, Ramona and I were driving to Bridger Bowl. We saw the cloud from Bozeman’s natural gas explosion but had no idea of its cause nor could we imagine its severity. Arriving at the ski hill, we were told there had been a huge explosion on Main Street.

The next day the Bozeman Daily Chronicle reported: “A natural gas explosion leveled half a city block in downtown Bozeman Thursday morning, sending debris and flames towering and shattering glass windows blocks away. Four businesses were destroyed.”

A leak in NorthWestern Energy’s gas delivery line was identified as the cause. Blame has yet to be established or accepted. Ill feelings are common. Who could be surprised?

People occasionally ask me to speculate on why NorthWestern Energy seems so remarkably maladroit and insensitive when dealing with the public. Why for example, during Thanksgiving week of 2009 did NWE blame the one victim who died in the explosion? “Damages were caused in whole or in part by the negligence or fault of...[the deceased].” This is a remarkably clear and insensitive example of “blaming the victim.”

Further, NorthWestern Energy was reported to be “unwilling to admit that the explosion was caused by natural gas escaping from the cracked service line.” The logic underlying this denial is surely self-defeating and guaranteed to alienate its local customer base.

At a year’s remove, their problem of public sentiment remains. Surely NorthWestern wants to be viewed as a good corporate citizen; it’s in the company’s self-interest to be one. A reservoir of goodwill is an asset that makes operations easier, morale higher, and probably helps relations with the Public Service Commission.

In my conversations people usually blame NorthWestern’s behavior on arrogance, character flaws, and willful ignorance. I disagree; NorthWestern Energy’s failings are unlikely to be explained by wickedness or stupidity. Rather, as Milton Friedman taught me decades ago, public utilities are monopolies operating under government protection. They focus more on accommodating regulators and satisfying financial analysts than pleasing customers.

Their status as a protected monopoly inhibits learning. Among other problems, such firms are unaccustomed to responding to fickle customers; single suppliers need not be highly attentive to consumers with few good substitutes. This places them at a disadvantage when an unanticipated crisis occurs.

Further, the organizational structure of public utilities normally rewards employees who economize. To gain satisfaction when a conflict arises, it’s often necessary to go to the top—and few people are equipped or positioned to do so.

Public utilities are rarely fleet and agile when responding to crises of public confidence. Yes, they have developed protocols for dealing with natural disasters and disruptions. Major wind, ice, and snowstorms are within their parameters of expectation, as are earthquakes and forest fires. These are all “Acts of God.” No reasonable person blames the companies for causing the resultant problems. Their responsibilities are only for cleanup, repair, and resumption of services.

Companies such as NorthWestern Energy must maintain continual and conscious efforts if they are to acquire public support. Thoughtful leaders work at this relentless task. Successful ones acquire sensitivity to delivering and applying more than power.