Public service company

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A public service company (or public utility company) is a corporation or other non-governmental business entity (i.e. limited partnership) which delivers public services - certain services considered essential to the public interest. The ranks of such companies include public utility companies like natural gas, pipeline, electricity, and water supply companies, sewer companies, telephone companies and telegraph companies. They also include public services such as transportation of passengers or property as a common carrier, such as airlines, railroads, trucking, bus, and taxicab companies.

Corporation Separate legal entity that has been incorporated through a legislative or registration process established through legislation

A corporation is an organization—usually a group of people or a company—authorized by the state to act as a single entity and recognized as such in law for certain purposes. Early incorporated entities were established by charter. Most jurisdictions now allow the creation of new corporations through registration.

Limited partnership form of partnership

A limited partnership (LP) is a form of partnership similar to a general partnership except that while a general partnership must have at least two general partners (GPs), a limited partnership must have at least one GP and at least one limited partner.

The public interest is "the welfare or well-being of the general public" and society.

Public service (or utility) companies may operate under certificates of public convenience and necessity which may limit competition. Their services may be subject to rate control and other regulations which are not common to general businesses.

The concept of public service companies was that, in order to attract sufficient private investment capital and guarantee sufficient revenues to ensure appropriate operations and services, protection from ruinous competition and additional governmental oversight of rates and services were required to balance the needs of the owners of the business with those of the general public.

Under concepts of deregulation, many principles under which public service companies have long operated are negated and replaced by those of a competitive market.

Deregulation process of removing regulations

Deregulation is the process of removing or reducing state regulations, typically in the economic sphere. It is the repeal of governmental regulation of the economy. It became common in advanced industrial economies in the 1970s and 1980s, as a result of new trends in economic thinking about the inefficiencies of government regulation, and the risk that regulatory agencies would be controlled by the regulated industry to its benefit, and thereby hurt consumers and the wider economy.

In the United States, at an interstate level, most airlines, railroad, and trucking and bus transportation services were deregulated in the last quarter of the 20th century. Many of the changes in the laws at the federal level had the effect of deregulation or substantially weakened similar state and local laws regarding the same services.

See also

Airline Deregulation Act

The Airline Deregulation Act is a 1978 United States federal law that deregulated the airline industry in the United States, removing the federal government control over such areas as fares, routes, and market entry of new airlines. It introduced a free market in the commercial airline industry and led to a great increase in the number of flights, a decrease in fares, an increase in the number of passengers and miles flown, and a consolidation of carriers. The Civil Aeronautics Board's powers of regulation were phased out, but the regulatory powers of the Federal Aviation Administration (FAA) were not diminished over all aspects of aviation safety.

Staggers Rail Act

The Staggers Rail Act of 1980 is a United States federal law that deregulated the American railroad industry to a significant extent, and it replaced the regulatory structure that had existed since the Interstate Commerce Act of 1887.

The Motor Carrier Regulatory Reform and Modernization Act, more commonly known as the Motor Carrier Act of 1980 (MCA) is a United States federal law which deregulated the trucking industry.

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Transportation in the United States

Transportation in the United States is facilitated by road, air, rail, and waterways. The vast majority of passenger travel occurs by automobile for shorter distances, and airplane for longer distances. In descending order, most cargoes travel by railroad, truck, pipeline, or boat; air shipping is typically used only for perishables and premium express shipments.

A common carrier in common law countries is a person or company that transports goods or people for any person or company and is responsible for any possible loss of the goods during transport. A common carrier offers its services to the general public under license or authority provided by a regulatory body, which has usually been granted "ministerial authority" by the legislation that created it. The regulatory body may create, interpret, and enforce its regulations upon the common carrier with independence and finality as long as it acts within the bounds of the enabling legislation.

Interstate Commerce Commission A regulatory agency in the United States created by the Interstate Commerce Act of 1887

The Interstate Commerce Commission (ICC) was a regulatory agency in the United States created by the Interstate Commerce Act of 1887. The agency's original purpose was to regulate railroads to ensure fair rates, to eliminate rate discrimination, and to regulate other aspects of common carriers, including interstate bus lines and telephone companies. Congress expanded ICC authority to regulate other modes of commerce beginning in 1906. Throughout the 20th century several of ICC's authorities were transferred to other federal agencies. The ICC was abolished in 1995, and its remaining functions were transferred to the Surface Transportation Board.

The Railroad Revitalization and Regulatory Reform Act of 1976, Pub.L. 94–210, S. 2718, 90 Stat. 31, enacted February 5, 1976, often called the "4R Act," is a United States federal law that established the basic outlines of regulatory reform in the railroad industry and provided transitional operating funds following the 1970 bankruptcy of Penn Central Transportation Company. The law approved the "Final System Plan" for the newly created Conrail and authorized acquisition of Northeast Corridor tracks and facilities by Amtrak.

Public utility organization that maintains the infrastructure for a public service

A public utility company is an organization that maintains the infrastructure for a public service. Public utilities are subject to forms of public control and regulation ranging from local community-based groups to statewide government monopolies.

Interstate Commerce Act of 1887

The Interstate Commerce Act of 1887 is a United States federal law that was designed to regulate the railroad industry, particularly its monopolistic practices. The Act required that railroad rates be "reasonable and just," but did not empower the government to fix specific rates. It also required that railroads publicize shipping rates and prohibited short haul or long haul fare discrimination, a form of price discrimination against smaller markets, particularly farmers in Western or Southern Territory compared to the Official Eastern states. The Act created a federal regulatory agency, the Interstate Commerce Commission (ICC), which it charged with monitoring railroads to ensure that they complied with the new regulations.

California Public Utilities Commission

The California Public Utilities Commission is a regulatory agency that regulates privately owned public utilities in the state of California, including electric power, telecommunications, natural gas and water companies. In addition, the CPUC regulates common carriers, including household goods movers, passenger transportation companies such as limousine services, and rail crossing safety. The CPUC has headquarters in the Civic Center district of San Francisco, and field offices in Los Angeles and Sacramento.

The Public Utilities Commission of Ohio (PUCO) is the public utilities commission of the U.S. state of Ohio, charged with the regulation of utility service providers such as those of electricity, natural gas, and telecommunications as well as railroad safety and intrastate hazardous materials transport.

District of Columbia Public Service Commission

The District of Columbia Public Service Commission is an independent quasi-judicial body and regulatory agency responsible for regulating landline telephone, electricity, and gas utility companies operating within the District of Columbia. It was established by the US Congress in 1913. The Commission offices are located at 1325 G Street NW, Washington, DC 20005.

Point-to-point transit is a transportation system in which a plane, bus, or train travels directly to a destination, rather than going through a central hub. This differs from the spoke-hub distribution paradigm in which the transportation goes to a central location where passengers change to another train, bus, or plane to reach their destination.

The Texas Department of Transportation (TxDOT) is a governmental agency and its purpose is to "provide safe, effective, and efficient movement of people and goods" throughout the state. Though the public face of the agency is generally associated with maintenance of the state's immense highway system, the agency is also responsible for aviation in the state and overseeing public transportation systems.

The Washington Utilities and Transportation Commission (UTC) is a three-member board appointed by the Governor of Washington and confirmed by the Washington State Senate to six-year terms. The purpose of the UTC is to regulate the rates, services, and practices of privately owned utilities and transportation companies, including electric, telecommunications, natural gas, water, and solid waste collection companies, pipelines, commercial ferries, buses, and motor carriers. The UTC is based in Olympia, Washington and employs approximately 150 staff, including attorneys, economists, accountants, and engineers. The agency is primarily an economic regulator; however, the UTC also houses Washington's pipeline safety program which inspects interstate and intrastate hazardous liquid and natural gas pipeline operators as an agent for the federal Pipeline and Hazardous Materials Safety Administration.

The Maryland Public Service Commission (PSC) is an independent administrative agency within the state government which regulates public utilities and certain taxi cab and other passenger services in Maryland. Similar to other state Public Utilities Commissions, the Maryland PSC regulates and sets tariff rates for natural gas, electricity distribution, local telephone, water, and sewage disposal companies. The PSC also sets the tariff rates for pilot services for vessels and privately owned toll bridges, approves the construction of electric generating plants and overhead transmission lines with a voltage above 69 kV, and licenses retail natural gas and electricity suppliers. The PSC offices are located in Baltimore in the William Donald Schaefer Building.

The Georgia Public Service Commission (PSC) is a statutory organ of the state government of Georgia; elected among five commission districts, the board consists of a Chairman, a Vice-chairman, and three Commissioners. PSC regulates telecommunications, transportation, electric and natural gas services in the U.S. state of Georgia.

Illinois Commerce Commission

The Illinois Commerce Commission is a quasi-judicial tribunal that regulates public utility services in the U.S. state of Illinois. The mission of the ICC is "to pursue an appropriate balance between the interest of consumers and existing and emerging service providers to ensure the provision of adequate, efficient, reliable, safe and least-cost public utility services." The most visible part of this mission is the setting of rates and charges for service by public utilities. Examples of utility types regulated by the ICC include electric, natural gas, telecommunications, water, and sewer. The ICC also regulates certain transportation activities, including railroad safety, towing, trucking, and household goods moving.

Utility ratemaking is the formal regulatory process in the United States by which public utilities set the prices they will charge consumers. Ratemaking, typically carried out through "rate cases" before a public utilities commission, serves as one of the primary instruments of government regulation of public utilities.

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