1. Before there were commissions Judicial regulation Direct legislative regulation Local franchise regulation

2. 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

3. 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

4. The Branches of Government Legislative –Makes laws Executive –Carries out the laws Judiciary –Assures that laws are properly carried out

5. Role of Commissions Commissions –Administrative functions Fulfill functions and goals designated by legislation –Some controversy about their role Quasi-legislative, quasi-judicial

6. 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

7. 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

8. 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... “

9. 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

10. 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

11. 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

12. 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

13. 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

14. FCC Structure Functional departments Advisory Committees

15. FCC Structure Bureaus –Consumer & Governmental Affairs –Enforcement –International –Media –Public Safety & Homeland Security –Wireless Telecommunications –Wireline Competition

16. 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

17. 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

18. 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

19. 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

20. PUCO How organized –Regulatory Departments Transportation Utilities –Functional offices Office of administration Consumer services Legal department Attorney General’s public utilities sector

21. PUCO The traditional utility rate process –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

22. Jurisdictional Issues Dual jurisdiction Federal Pre-emption Federal-State Joint Boards Efforts of state commission to speak with one voice: NARUC