Utility Regulation
A public utility is an industry that is required by law to provide adequate service in its field at reasonable prices to consumers who apply for it. Public utilities frequently operate as monopolies in their market. In the United States, public utilities are most commonly involved in the business of supplying consumers with water, electricity, telephone, natural gas, and other necessary services. Industries such as these are said to be “affected with a public interest” and therefore are subject to a certain degree of government regulation from which other businesses are exempt. Opinions differ as to the characteristics that define an industry as a public utility, since all industries, in a sense, serve the public. A public utility is frequently monopolistic in nature and often is not prevented by competing companies from charging excessive prices. A public utility usually operates under a license or franchise that allows special privileges, such as the right of eminent domain. A public utility usually supplies an essential service, such as water, electricity, or natural gas. The unavailability of the service would seriously affect public health and welfare. It is important to have regulation over essential utilities that fu
Each Commission has a division of Administrative Law Judges (ALJ). All Administrative Law Judges must be lawyers licensed to practice law in that state. The ALJ divisions render “recommended decisions” regarding cases that are filed with the Commission. The ALJ divisions may decide many types of cases, including: complaints from consumers or other utilities; rate cases; applications for certificates of need and necessity; petitions for approval for contracts; or waivers for the utility company themselves. If the ALJ divisions are unable to render a decision due to objection from the parties or the public, they will convene a hearing. Evidence from all interested parties will be taken at the hearing. In order to assure a smooth and timely disposition of each case, the ALJ assigned to the case usually issues a procedural order with pre-hearing motions and schedules for the hearing. This places deadlines for the filing of required documentation by the parties and prevents long ! The Public Service Commission of West Virginia (PSC) is located in Charleston, WV. They supervise and regulate the rates, services, operations, and most other activities of all public utilities and many common and contract motor carriers of passengers and property within West Virginia. The PSC processes and acts upon complaints against utilities and common carriers. The success of state and federal regulation of public utilities has led to several revelations. It became clear that there is a need for regulation due to economic changes and the impact that public utilities have on the general public. If the industries that supply the products necessary to the well being of large populations are not regulated, then the chance of excessive rates and even discrimination increase. Corporations that do not have competing companies to rival their prices are much more likely to gouge the consumers that need their products and services. Water, electricity, and natural gas are products that people need and use every day. It is in the public’s best interest, as well as the compan
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Approximate Word count = 1393
Approximate Pages = 6 (250 words per page double spaced)
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