Written by attorneys · grounded in primary & secondary sources — see below
An entity charged with a duty of public service that furnishes essential facilities or services such as power, transportation, or communications to patrons for compensation. Such entities are subject to special rules including patron privileges on their land and restrictions on limiting liability for negligence.
Sources & Authorities
How it applies
Common Examples
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Invitee Uses Utility Facility
Paige Porter enters land owned by a manufacturing plant to reach a public utility substation for service. The plant owner knows the path contains an obvious hazard but must anticipate harm because patrons are entitled to use the utility facilities. The owner therefore faces liability for injuries Paige sustains despite the obvious danger.
State Regulates Utility Siting
Premier Manufacturing seeks to build a new power plant and challenges a state commission order blocking the project. The commission asserts authority over public utilities to protect public health and safety. The court upholds the order because the state may impose reasonable conditions on entities providing essential energy services.
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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)
Agency Reviews Utility License
Piper Patel petitions the Nuclear Regulatory Commission to reopen a hearing on a public utility's operating license. The agency limits the scope of review to safety issues rather than broader policy questions. The court affirms the agency's discretion because public utilities providing power are subject to specialized federal oversight.
Vermont Yankee Nuclear Power Corp. v. Nat. Res. Def. Council, Inc.467 U.S. 837, 843, 104 S. Ct. 2778, 2781, 81 L. Ed. 2d 694 (1984)
Utility Licensing Procedures
Pedro Pacheco challenges a public utility's license renewal on procedural grounds. The agency followed its own rules rather than additional procedures demanded by intervenors. The court upholds the process because public utilities are governed by established administrative frameworks that balance efficiency and public input.
Vermont Yankee Nuclear Power Corp. v. Natural Resources Defense Council435 U.S. 519, 542 (1978)
Liability Limits for Utility
Philip Powell sues a public utility after an alleged radiation release from its plant. The utility invokes a federal statute capping liability for such incidents. The court enforces the cap because Congress designed the limit to encourage continued operation of essential energy facilities.
DUKE POWER CO. v. CAROLINA ENVIRONMENTAL STUDY GROUP, INC.438 U.S. 59 (1978)
Regulation of Utility Operations
Priya Prasad challenges a federal order restricting how a public utility may conduct its operations. The order is struck down because it exceeds the agency's statutory authority over the utility's business decisions. The ruling preserves the utility's ability to operate within lawful bounds while serving the public.
Panama Refining Co. v. Ryan293 U.S. 388 (1935)
Common questions
Frequently Asked
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May a public utility limit its liability for negligence to patrons?+
No. A public utility charged with a duty of public service may not exempt itself from liability for negligent breach of that duty. 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 privilege does a patron of a public utility enjoy on the utility's land?+
A patron is privileged at reasonable times and in a reasonable manner to be upon any part of the land provided for public use or necessary for enjoyment of the facilities. This right justifies the patron in taking greater risks than a mere licensee would be permitted to take.
Supporting sources
When may a public utility be liable for insults by its employees?+
A public utility is subject to liability to patrons for gross insults that reasonably offend them when inflicted by the utility's servants acting within the scope of employment.
Supporting sources
Does federal law restrict injunctions against state public utility rate orders?+
Yes. District courts may not enjoin or restrain compliance with state agency orders affecting rates chargeable by a public utility when the statutory conditions are met.
Supporting sources
467 U.S. 837, 843, 104 S. Ct. 2778, 2781, 81 L. Ed. 2d 694 (1984)Administrative Law
…the type of issues the intervenors were trying to raise. There is little doubt that under the Atomic Energy Act of 1954, state public utility commissions or similar bodies are empowered to make the initial decision regarding the need for power. 42 U. S. C. § 2021 (k). The Commission's prime area of concern in the licensing…