Also known as:public utility · public-utility · public service companies
Written by attorneys — see sources below.
An entity that supplies essential services such as electricity, natural gas, water, or telecommunications to the public under regulatory oversight. The fact that a person is entitled to use the facilities of such an entity is a factor indicating that harm from a known or obvious danger on the premises should be anticipated by the possessor.
See Our Sources· 3 primary sources
Statutes
Model Codes
Restatements
How its tested
Common Examples
6
Utility Access and Known Danger
Paula Pierce enters a landowner's property to reach a public utility meter as she is entitled to do. The path contains an obvious hazard. Because Paula is using facilities of a public utility, the possessor must anticipate the harm despite the obviousness and faces potential liability.
Utility Advertising Restrictions
Pulse Media, a public utility, seeks to promote energy conservation through targeted mailings. State regulators bar the messages. The utility challenges the ban as an unconstitutional restriction on commercial speech protected by the First Amendment.
Central Hudson Gas & Electric Corp. v. Public Service Commission of New York447 U.S. 557, 100 S. Ct. 2343, 65 L. Ed. 2d 341 (1980)
In December 1973, the Public Service Commission ordered electric utilities in New York State to cease all advertising that promoted the use of electricity because the interconnected utility system lacked sufficient fuel stocks for the 1973-1974 winter. The order rested on the Commission's finding that the system did not have sufficient fuel stocks or sources of supply to meet customer demands.
Three years later, when the fuel shortage had eased, the Commission requested comments from the public on its proposal to continue the ban on promotional advertising. Central Hudson Gas & Electric Corp. opposed the ban on First Amendment grounds. After reviewing the public comments, the Commission extended the prohibition in a Policy Statement issued on February 25, 1977.
The Policy Statement divided advertising expenses into promotional and institutional categories. It permitted informational advertising designed to encourage shifts of consumption from peak demand times to periods of low electricity demand. The Commission banned promotional advertising because additional electricity would be more expensive to produce and promotional advertising would give misleading signals to the public. Central Hudson challenged the order in state court. The order was upheld through the New York Court of Appeals. The Supreme Court noted probable jurisdiction and reversed.
Phoenix Technologies plans a new nuclear facility. State energy regulators impose certification requirements that conflict with federal standards. The company sues, claiming federal law preempts the state rules under the Supremacy Clause.
Pacific Gas and Electric Co. v. State Energy Resources Conservation and Development Commission461 U.S. 190, 103 S. Ct. 1713, 75 L. Ed. 2d 752 (1983)
By the late 1970s, spent nuclear fuel had accumulated at reactor sites across the country, totaling some 8,000 metric tons with projections of 72,000 metric tons by the year 2000. Government studies indicated that several reactors could be forced to shut down in the near future due to insufficient storage capacity in on-site pools. California responded to these concerns and the absence of a permanent disposal method by amending its energy laws in 1976.
In 1974 California had enacted the Warren-Alquist State Energy Resources Conservation and Development Act. The Act requires any utility seeking to construct an electric power generating plant, including a nuclear facility, to obtain certification from the State Energy Resources Conservation and Development Commission after a multi-stage review process. The Warren-Alquist Act was amended in 1976 to provide additional state regulation of new nuclear powerplant construction. This section directs the Commission to determine on a case-by-case basis that adequate storage capacity for spent fuel rods will exist when needed. Each utility must also maintain continuous on-site full core reserve storage capacity.
Section 25524.2 established a moratorium on the certification of new nuclear plants. Certification is barred until the Commission finds that a demonstrated technology or means for the permanent disposal of high-level nuclear waste has been developed and approved by the United States. In 1978 petitioners Pacific Gas & Electric Co. and Southern California Edison Co. filed suit in the United States District Court for the Eastern District of California. They sought a declaratory judgment that the two sections and other provisions of the Warren-Alquist Act were pre-empted by the Atomic Energy Act of 1954.
The District Court held that the petitioners had standing, that the challenges were ripe, and that both sections were invalid as pre-empted. The Court of Appeals for the Ninth Circuit affirmed standing and ripeness as to section 25524.2 but held the challenge to section 25524.1(b) unripe. On the merits, the court held that the nuclear moratorium provisions of § 25524.2 were not pre-empted because §§ 271 and 274(k) of the Atomic Energy Act constitute a congressional authorization for States to regulate nuclear powerplants for purposes other than protection against radiation hazards. The Supreme Court granted certiorari limited to the ripeness of the challenges to both sections and the pre-emption of section 25524.2.
Zoning and Utility Service
Preston Pratt challenges a city zoning ordinance that limits household occupancy and indirectly affects utility connections. The ordinance is reviewed for substantive due process violations because it burdens family living arrangements served by public utilities.
Moore v. City of East Cleveland, Ohio431 U.S. 494, 503 (1977)
In early 1973, Mrs. Inez Moore received a notice of violation from the city of East Cleveland. The notice stated that her grandson John Moore, Jr., was an illegal occupant of her home. It directed her to comply with the housing ordinance.
Mrs. Moore lived in her East Cleveland home together with her son Dale Moore, Sr., and her two grandsons Dale Moore, Jr., and John Moore, Jr. John came to live with her after his mother's death when he was less than one year old. When she failed to remove John from the home, the city filed a criminal charge against her.
Mrs. Moore moved to dismiss the charge. She claimed that the ordinance was constitutionally invalid on its face. Her motion was overruled. Upon conviction she was sentenced to five days in jail and a $25 fine.
The East Cleveland ordinance limited occupancy of a dwelling unit to members of a single family. The ordinance defined family to include only a husband or wife of the nominal head of the household, unmarried children of the head or spouse provided they have no children residing with them, a parent of the head or spouse, or not more than one dependent child of the head or spouse along with that child's spouse and dependent children.
The Ohio Court of Appeals affirmed the conviction after giving full consideration to her constitutional claims. The Ohio Supreme Court denied review of the case. The United States Supreme Court noted probable jurisdiction of her appeal.
Telephone Directory Copyright
Prism Analytics compiles a directory using listings from a rural telephone utility. The utility claims copyright infringement. The compilation is held uncopyrightable because the utility's factual listings lack the requisite originality.
Feist Publications, Inc. v. Rural Telephone Service Co.499 U.S. 340, 349-350 (1991)
Rural Telephone Service Company, Inc., is a certified public utility that provides telephone service to several communities in northwest Kansas. As a condition of its monopoly franchise, state regulation requires Rural to issue an updated telephone directory annually. Rural's directory consists of white pages listing subscribers' names, towns, and telephone numbers in alphabetical order, along with yellow pages featuring classified advertisements.
Feist Publications, Inc., specializes in area-wide telephone directories covering larger geographical ranges than typical local directories. Feist's 1983 directory encompasses eleven telephone service areas in fifteen counties and contains 46,878 white pages listings. To compile its directory, Feist approached each of the eleven telephone companies operating in northwest Kansas and offered to pay for the right to use their white pages listings.
Of the eleven companies, only Rural refused to license its listings. Feist then copied 1,309 listings from Rural's 1982-1983 white pages after first removing several thousand outside its geographic range and verifying the remaining data through additional investigation that added street addresses to many entries. Four of the copied listings were fictitious entries that Rural had inserted to detect copying.
Rural sued Feist for copyright infringement in the United States District Court for the District of Kansas. The district court granted summary judgment to Rural. The Court of Appeals for the Tenth Circuit affirmed in an unpublished opinion. The Supreme Court granted certiorari to review whether the copyright in Rural's directory protects the names, towns, and telephone numbers copied by Feist.
Utility Privacy Challenge
Patricia Patel receives contraceptive advice distributed by a public utility. State law bans such communications. The Court recognizes a right of privacy that protects the communications from undue state interference.
Griswold v. Connecticut381 U.S. 479 (1965)
Estelle Griswold served as Executive Director of the Planned Parenthood League of Connecticut. Dr. C. Lee Buxton served as the League's Medical Director and was a professor at Yale Medical School. Together they opened and operated a center in New Haven that was open from November 1 to November 10, 1961.
At the center they gave information, instruction, and medical advice to married persons as to the means of preventing conception. They examined the wife and prescribed the best contraceptive device or material for her use. Fees were usually charged, although some couples were serviced free.
The statutes involved were sections 53-32 and 54-196 of the General Statutes of Connecticut (1958 rev.). Section 53-32 made it a crime to use any drug, medicinal article or instrument for the purpose of preventing conception. Section 54-196 punished accessories as principals. The appellants were found guilty as accessories and fined $100 each.
The Appellate Division of the Circuit Court affirmed the convictions. The Supreme Court of Errors of Connecticut affirmed that judgment in State v. Griswold, 151 Conn. 544, 200 A. 2d 479. The United States Supreme Court noted probable jurisdiction.
The appellants asserted standing to raise the constitutional rights of the married persons with whom they had a professional relationship. A criminal conviction for serving married couples removes doubts about case or controversy. The rights of husband and wife would be diluted unless considered in a suit involving those who have this kind of confidential relation to them.
5 common questions
Students Frequently Ask...
May a public utility contractually limit its liability for negligence to patrons?
A public utility charged with a duty of public service may not exempt itself from liability for negligent breach of that duty to the person served. The rule is subject to mitigation only by a fairly bargained agreement to limit liability to a reasonable agreed value in return for a lower rate.
Supporting sources
What privileges do patrons of public utilities hold regarding entry on utility land?
A patron of a public utility is privileged, at reasonable times and in a reasonable manner, to be upon any part of the land in the possession of the utility that is provided for the use of the public or necessary for their enjoyment of its facilities.
Supporting sources
Are public utilities subject to liability for insults inflicted by their employees?
A common carrier or other public utility is subject to liability to patrons utilizing its facilities for gross insults which reasonably offend them, inflicted by the utility's servants while otherwise acting within the scope of their employment.
Supporting sources
How does the Eleventh Amendment affect suits against state public utility commissions?
The Eleventh Amendment bars retroactive monetary relief against a state but permits prospective injunctive relief ordering a state officer to conform future conduct to federal law even if that order requires the state to spend money going forward.
Supporting sources
May Congress direct state public utility commissions to implement federal rate formulas?
Congress may not commandeer state agencies by requiring them to adopt and enforce federal regulatory schemes. Such direct orders to state regulators violate the reserved powers of the states under the Tenth Amendment.
Supporting sources
. See 42 U. S. C. § 2232 (a); 10 CFR § 50.57 (a) (1977). The Licensing Board's decision is subject to review similar to that afforded the Board's decision with respect to a construction…
Holding Company Act of 1935, 49 Stat. 838, as amended, 15 U. S. C. § 79 et seq. ; the Trust Indenture Act of 1939, 53 Stat. 1149, as amended, 15 U. S. C. § 77aaa et seq. ; and the…
Professional ResponsibilityLawyers’ duties to the public and the legal system · Assisting judicial misconductMPREFoundational