Overview of Utilities Law

Public utilities provide essential services to people and business, including delivering electricity, gas, and water. Federal and state laws regulate public utilities. Government agencies have a role in making sure the public gets fair access to necessary utilities.

The Federal Energy Regulatory Commission (FERC) regulates national standards for energy production and distribution. Local Public Utility Commissions (PUCs) generally regulate local energy and utility management. PUCs have a duty to ensure service quality, reliability, infrastructure, and fair rate setting for public utilities. To understand more about legal claims involving utility companies, contact a local utility law attorney.

What Is Utilities Law?

Utilities law involves regulations and disputes related to public utility companies that supply electricity, gas, water, transportation, and telecommunications services to people and businesses.

Many utilities operate under the authority of state utilities commissions. Legal disputes and problems with utility regulations often involve administrative law.

Administrative law deals with how government agencies operate, including agency rulemaking, practices, enforcement, and challenging utility agency interpretations.

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How Are Public Utilities Regulated?

Public utility law can fall under federal, state, and municipal utility regulations. Generally, federal laws regulate utilities that affect interstate commerce, including transmission across state lines. The federal government also has jurisdiction over national energy and utility policies.

The Public Utilities Regulatory Policies Act (PURPA) regulates electric energy between utilities in different states and municipalities. Electric companies and power producers connect along distribution and transmission grids. PURPA also sets power purchase rates. The Federal Energy Regulatory Commission (FERC) monitors energy companies and enforces federal regulations.

States also regulate energy production, distribution, and power transmission. How utility companies operate can vary by state law. In some states, public utilities commissions oversee regulated facilities. Other state legislatures delegate regulatory authority to electric utility boards. State authorities can set electricity rates, safety regulations, and other local utility laws.

The Role of the Public Utilities Commission (PUC)

Public Utility Commissions (PUCs) regulate public utilities within the state, including gas, electricity, telecommunications, and water. A state can use a single PUC to regulate all public utilities or have multiple utility agencies. When PUCs make new rules or change existing regulations, they must follow administrative rulemaking procedures, including the notice and public comment process.

PUCs have a role in setting prices and delivering safe energy. However, PUCs also have a broader planning and public policy role. PUCs can set renewable energy targets, energy efficiency standards, and future resource planning.

Many utilities act as natural monopolies, with companies owning electricity production, transmission, and distribution. Other states have changed their utility structures to allow for competition from multiple energy generators. These can include regional transmission organizations or independent system operators across multiple states.

PUCs have a public interest in making sure utilities are safe, efficient, and offered at a reasonable rate. PUCs can regulate public services and private, investor-owned utilities. However, some electric cooperatives and municipal utilities may operate independently within the state.

Common Legal Issues with Utility Companies

Regulators, customers, and property owners may have problems with utility rates or the way utility companies provide services. Some types of utility disputes and legal claims include:

• Utility bill disputes
• Real estate litigation
• Property damage
• Pollution and contamination
• Public service commission complaints
• Taking private property (eminent domain)
• Personal injury claims for fires, tripping hazards, or electrocution
• Easements, encroachment, and right of way over private property

Many people and small businesses struggle with utility prices. Investor-owned utilities can have a lot of influence over state legislators and PUC members. When regulated utilities raise utility costs beyond a reasonable rate, ratepayers can take legal action against the utility company.

Understanding Eminent Domain and Easements

Eminent domain is the government’s power to take private property for public use. Federal and local governments have the authority to take private property for a public purpose and must fairly compensate the owner. Government agencies can also take access to or use public land through an easement or right-of-way.

Taking all or part of private property for public utilities generally qualifies as public use. A utility company can appropriate land to build a public utilities project or maintain access to utility lines. However, the public utility must pay fair market value for taking or use of the land. If the property owner disagrees with the process or the value, they can challenge the seizure in court.

When To Get Help from a Utilities Lawyer

If you have a complaint about utility rates, you can contact the utility provider. If the provider cannot resolve your disputes, you can file a complaint with your local public utilities commission. A utilities law attorney can help you file a utilities complaint in court. You can file a lawsuit against the utility company or PUC. For legal advice about utility law complaints, talk to a local utilities lawyer.