Public Utilities Commission

Agency History

The duties of the Public Utilities Commission (hereafter P.U.C.) involve the regulation of the intrastate activities of railroads and other transportation companies, including inter-urban and street railways, steamship companies, canals, toll bridges, pipelines, and freight by stages and trucks, and includes the regulation of warehouses and of public utilities engaged in the selling of water for domestic and irrigation purposes, gas, electric power, steam heat, telephone and telegraphic services. It is primarily charged with (1) fixing rates and granting reporation for excess charges: (2) supervising service conditions: (3) controlling financing of public utilities: and (4) regulating their competition with one another.

The first attempt by the state government to regulate public utilities came with the establishment of a Transportation Commission in 1876, composed of three commissioners with limited jurisdiction over steam railways ( Stats. 1875-76, Chap. 515). The next year the Commission was abolished and replaced by a single Commissioner of Transportation, empowered to examine complaints against steam railways and report to the governor ( Stats. 1877-78, Chap. 641). In 1879, under section 22 of Article XII of the State's newly passed constitution, the California Railroad Commission (hereafter C.R.C.) was created to replace the Transportation Commissioner. This Commission inherited all the authority of its predecessor, as well as authority to review long and short haul practices, increases and reductions in rates, and discriminations in charges. The next year its authority was expanded to include all railroads other than street railroads, and steamboats in intrastate transportation ( Stats. 1880, Chap. 59).

In 1909, the Wright Act ( Stats. 1909, Chap. 312), endowed the Commission with the power to fix maximum rates. The modern authority and responsibilities of the Commission were the result of the Railroad Commission Act ( Stats. 1911, Chap. 20), the Public Utilities Act ( Stats. 1911, 1st Ex. Sess., Chap. 14) and Assembly Amendments of 1911, Nos. 6, 47, and 50 (amendments adopted by special election on October 10, 1911).

In 1911, the newly reformed C.R.C. created four departments to facilitate its operations (Legal, Rates, Statistics and Accounts, and Engineering). The Rates and Engineering Departments in turn established divisions to deal with particular functions (see Chart I at end of agency history). In 1917, the C.R.C. was given authority over auto stages and trucks ( Stats. 1917, Chap. 213) and a new department was established to handle this function. In 1935, the Commission's authority was further expanded to cover highway and city carriers ( Stats. 1935, Chap. 223 and Chap. 312).

The basic structure of the C.R.C. remained unchanged until 1937 when the Commission reorganized itself. The Rates and the Engineering Departments were eliminated and the divisions which had composed them were divided between the newly created Utilities and Transportation Departments (see Chart II at end of agency history).

The organization of the Commission has remained unchanged essentially from 1937 to the present. In 1946, by amendment of section22 of Article XII of the State Constitution, the name was changed to the Public Utilities Commission. By a 1953 administrative action, its departments were re-named divisions and its divisions were re-titled branches.