The availability of heat, light, and water service are central to modern life. For this reason, an individual, business, or local government that provides one of these services to the public is deemed a “public utility” and is subject to a system of state regulation designed to ensure the availability of service and protect the interests of consumers, public utilities, and their investors.
The state public utility regulatory system that exists today was largely created through the 1907 Public Utilities Law. The features of this system generally include: a broad definition of “public utility”; centralized regulatory authority vested in the Public Service Commission; monopoly status for public utilities; state control of rates; minimum service standards; public utility authority to take private property for facilities, subject to state approval; and limitations on public utility ownership.