Transcript Role of Commissions

Before there were commissions
• Judicial regulation
• Direct legislative regulation
• Local franchise regulation
It all started with the railroads
• Before 1870: fact-finding and advisory boards to
deal with railroads; RI in 1839, NH in 1844, CT in
1853, NY and VT in 1855, Maine in 1858, Ohio in
1867, Mass. in 1869—no control over rates
• 1871-1874 Illinois, Iowa, Minnesota, Wisconsin,
established commissions with power to set
maximum rates and to forbid discrimination by
railroads and mergers between railroads.
• By 1887 (establishment of Interstate Commerce
Commission): 25 states had commissions
Commissions as we know them
• 1907: New York passed the Public Service
Commission Law; included rapid transit,
railroads, gas and electric
• 1907: Wisconsin expanded railroad
commission duties to include gas, light,
power and telephone
• By 1920 more than 2/3 of states had
regulatory commissions
The Branches of Government
• Legislative
– Makes laws
• Executive
– Carries out the laws
• Judiciary
– Assures that laws are properly carried out
Role of Commissions
• Commissions
– Administrative functions
• Fulfill functions and goals designated by legislation
– Some controversy about their role
• Quasi-legislative, quasi-judicial
Relationship with other branches of
government
• Executive branch
– In many instances nominate commission members (FCC and most
state commissions)
– Handle budget requests, etc. (OMB for FCC)
– DOJ and states attorney generals offices to enforce and defend
commission orders
• Legislative branch
– Create commissions through legislation, and therefore establish
their powers
– Approve commission appointments
– Budget control
• Judicial branch
– Judicial review: assure due process
FCC
• 1910 Mann-Elkins Act: made telephone and
telegraph companies subject to the ICC and
declared them common carriers
• 1934 Communication Act established the FCC to
take over communication regulation from the ICC
• FCC membership
– Five members serving for 5 year terms
– Bipartisan, no more than 3 from president’s party
– Requirements
• US citizenship
• No financial interests in the industries regulated
Communication Act
Section 151:
“For the purpose of regulating interstate and foreign
commerce in communication by wire and radio so
as to make available, so far as possible, to all the
people of the United States, without
discrimination on the the basis of race, color,
religion, national origin, or sex, a rapid, efficient,
Nationwide, and world-wide wire and radio
communication service with adequate facilities at
reasonable charges . . . “
Setting up the FCC
• Section 152: Application to interstate and
international communication
• Section 154: membership of commission;
authority to make expenditures; public
proceedings; annual report to Congress
Title II of the Communication Act
• Section 201 (a):
– duty to provide service upon reasonable request
(obligation to serve)
• Section 201 (b):
– just and reasonable rates
• Section 202 (a):
– no discrimination in charges or services (persons or
localities)
• Section 203 (a): filing of tariffs
Title II (cont.)
• Section 204 (a)(1):
– investigation of rates
• Section 205(a):
– authority to enforce just and reasonable rates
• Section 208 (a):
– authority to investigate complaints
• Section 209:
– authority to order payment of damages
FCC Process
• Public notice of proposed rules
• Opportunity for public comment (in written
form)
• All comments and reply comments become
part of the public record
• Ex parte meetings (with required letter)
allowed
FCC Proceedings
• Notice of Proposed Rulemaking
– Comment and reply comment cycle
• Notice of Inquiry
– Gather information
– Preparation for rulemaking
• Report and Order
– Petition for reconsideration: comments sought on
petitions
– Court appeal
FCC Structure
• Functional departments
• Advisory Committees
FCC Structure
• Bureaus
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Consumer & Governmental Affairs
Enforcement
International
Media
Public Safety & Homeland Security
Wireless Telecommunications
Wireline Competition
Overview of state commissions
• 51 state commissions (including DC)
– 11 elected; 2 chosen by legislature (So. Carolina &
Virginia); 37 appointed by governor; 1 appointed by
mayor (DC)
– Regulate a variety of industries: electric, gas, water,
railroads, trucking, buses and cabs, railroad crossings,
grain elevators, etc.
– Most have 3-5 members, four have seven
– Terms from 4-8 years, with 4 or 6 most frequent
More on state commissions
– Requirements
• 15 have minimum age requirements (ranging from
18 in Arizona to 30 in Georgia, Oklahoma, Texas
and Utah)
• Only 8 have statutory professional requirements
– Staff sizes—vary in size from very small
(Vermont) to over 1,000 (California)
– Organization
• Along functional lines or industry lines or a
combination of both
PUCO
• History
– 1867: Office of the Commissioner of Railroads and Telegraphs—
fact finding agency for General Assembly
– 1906: restructured as Railroad Commission; increased to 3
commissioners; added a staff; given authority to set rates
– 1911: Public Service Commission; extended authority to
telephone, electric light, gas, and water
– 1913: name changed to Public Utilities Commission of Ohio;
added motor transport industries
– 1983: expanded from 3 to 5 member commission; 5 year terms,
appointed by governor from names submitted by the Public
Utilities Commission Nominating Council
PUCO
• What they regulate
– Electric, natural gas, transportation (rail, trucking,
moving), water
– Telecommunications
• Local
• Intra-state long distance
• Certifies cellular and digital services (doesn’t really regulate
them)
• No regulation of internet
• No regulation of cable providers
PUCO
• How organized
– Regulatory Departments
• Transportation
• Utilities
– Functional offices
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Office of administration
Consumer services
Legal department
Attorney General’s public utilities sector
PUCO
• The traditional utility rate process
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Notice of intent to change rates by company
Rate case application
Public notices
Staff report
Formal legal hearings
Public hearings
PUCO decision
• Appeals to state courts
Jurisdictional Issues
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Dual jurisdiction
Federal Pre-emption
Federal-State Joint Boards
Efforts of state commission to speak with
one voice: NARUC