Strange situation here in Lake Charles. An Entergy employee I've worked with on several audits approached me at a conference and offered to share 'unofficial' information about upcoming rate changes that aren't public yet. Said it would help my clients prepare better. This feels like insider trading territory to me, but I wanted to get opinions from experienced auditors.
Utility employee offered me insider information - how to handle?
Estelle, that's a huge red flag. Don't touch it with a ten-foot pole. I had a similar offer from a National Grid employee in Syracuse about five years ago regarding transmission upgrades. Politely declined and documented the conversation. Using non-public utility information could violate state regulations and definitely violates CUBA ethics.
Lorraine is absolutely right. This could be a compliance test or the employee could be setting you up for trouble. Either way, using inside information gives you an unfair advantage over other auditors and could expose you to regulatory action. I'd report this to CUBA's ethics committee.
Had something similar with NPPD here in Nebraska last year. The employee was actually testing auditors to see who would accept improper information. Three auditors got reported to the state utility commission. Document everything and stay away from any 'inside deals.'
Thanks everyone. I suspected it was problematic but wanted confirmation. I've documented the conversation and will be reporting it to CUBA as Renee suggested. Better to be overly cautious than risk my certification and reputation over something like this.
Good decision Estelle. The CUBA ethics hotline is confidential if you want to discuss this further before filing a formal report. They helped me navigate a similar situation with EPB a few years ago. Better safe than sorry when it comes to regulatory compliance.
This thread should be required reading for new auditors. The temptation to use insider information can be strong when you're trying to provide better service to clients, but the risks far outweigh any potential benefits. Integrity is our most valuable professional asset.
Deb makes a great point. I always tell new auditors that your reputation takes decades to build but can be destroyed overnight. Cutting corners on ethics is never worth it, no matter how much pressure you feel from clients to deliver results.
The ethics training scenarios in CUBA recertification actually cover this exact situation. Using material non-public information violates both professional standards and potentially securities regulations if the client is publicly traded. Always err on the side of transparency and proper channels.
Jerome's right about the securities angle. Many of my Xcel Energy clients in Sioux Falls are publicly traded companies. Using insider utility information in their energy management decisions could create SEC issues beyond just professional ethics violations.
Great discussion everyone. This is exactly why we have professional standards and continuing education requirements. Estelle handled this perfectly by seeking guidance and documenting everything. For anyone facing similar situations, the CUBA ethics committee is always available for confidential consultation. These scenarios are becoming more common as utilities digitize their operations and employees have access to more sensitive information.