Essay Paper Discussing Regulation of Public Utilities | Help with Assignment Online

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It is worthwhile t the outset to distinguish clearly between the special control over public utilities and the regulation of industries in general. Under the police power, state hs the right to regulate any business. This sort of regulation hs to do with safety devices, conditions of health and well being of employees, and, with more or less defined limitations, the general welfare of the public (King, 2000).

The regulation of public utilities, however, is of different sort altogether. It embraces the right to control the very organization and conduct of the enterprise. It is concerned not only with safety nd welfare, but with the rates charged the public nd the returns or profits realized by the business, s wells with the products or services furnished. In the so-called unregulated business the right to such interference is not recognized. after ll reasonable provisions for the public welfare have been made, ordinary business is still free to furnish such services or products s it desires, charge such prices or rates s it is able to exact, and conduct its financial management according to its own purposes or contractual arrangements.

The right to regulate in the special sense ws first recognized in the celebrated cse of Munn v. Illinois, decided by the Supreme Court of the United States in 1876. This case involved the right of the Illinois general assembly to prescribe maximum charges for the storage and handling of grin by Chicago elevators. The new power attempted by the state was the radical departure from existing policy. The ct was sharply contested and carried to the Supreme Court of the United States. The power was upheld and the basis lid for public utility regulation. The principle itself has never been questioned since.

bout the time when the Illinois warehouse statute was enacted, there was widespread legislation throughout the country, especially through the newly developed western states, for the regulation of railroads. This was the period of so-called Granger legislation when almost spontaneously new statutes for railroad regulation were enacted. Of the seven Granger cases decided by the Supreme Court in 1876, all but the Munn case concerned railroads. 1 Thus, active regulation t that time chiefly centred around the railroads. It finally resulted in the passage by Congress in 1887 of n ct to Regulate Commerce, or, s it is called, the Interstate Commerce ct (Morgn, 2003).

During the 1880’s serious problems developed also in connection with other public utilities, particularly street railways. The rapid growth of cities created a demand for adequate transportation t reasonable rates. Similarly, other services became important, and demand for the extension of regulation developed. Consequently, after 1900, the policy of regulation expanded rapidly, and in the succeeding decide public utility statutes with commissions were provided in most of the states.

The basis of regulation, s established by the Munn decision and repeated in ll of the leading cases where the same question arose, was the special public interest in the particular industries. It is worth inquiring into this special interest. What are the particular qualities, or the extraordinary conditions, which set n enterprise part from others not subject to regulation What constitutes the special interest which transforms the business into the public utility

Various answers have been made from time to time to these questions. In court opinions, sometimes one view is reflected,Myhomeworkwriters Order

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