Public Utilities Essay Example | Topics and Well Written Essays - 2250 words

Public Utilities - Essay pillowcaseRegulatory commissions mustiness them establish the measure of value for each of these items these value determinations atomic number 18 made, not found, commentary the overall value relatively unknown. In a competitive market, value is determined by practice market processes such as supply and demand. However, in the case of regulated industries, earnings are certified upon the rates established by the regulatory commissions-if rates are set low, the value is consequently low, and the comparable results from rates that are set high.Time variant rates tycoon occur when the public organism served fluctuates in their demands of the public utility. For example, residents living in the northern stirs will go through periods in spite of appearance the course where they will need more heat, creating a demand for electricity and gas power and services. These times, referred to as crown times, butt joint cause temporary fluctuations in the rat es to ensure proper distribution of the appropriate services. Similarly, ear echo and Internet companies can see the same fluctuating demands at various times in the sidereal day as changes in shifts occur at work or school for the public. As people are relieved from their jobs, they might see the need to begin using the phone to contact family members, set appointments, or call other places of business for problems or clarification of services and bills. These time variant rates can often lead to drastic increases or decreases in rates for a short period, and can in any case add to the publics opinion of how required the services might be. For example, several phone companies across the United States digest a standing rate for service however, the rates on Sundays for long distance service might decrease drastically to provide consumers with an opportunity to contact family members that live out of state. The development of cell phone technology has further dropped the rates f or long distance phone service. However, to continually regulate the rates at which the public utility companies are charging the public, regulatory commissions at the public, state, and federal levels are necessary for several reasons.The graduation exercise step to successfully regulating industries categorized as public utilities is making sure the public within the communities realize the economic advantages of holding regulated monopolies rather than competitive businesses. After the need for regulations have been expressed, the agencies provided these responsibilities must ensure that they are regulating the industries to the best of their abilities doing so will not only provide necessary services to the public, but will also offer large economic growth to the community. (Phillips 9).To regulate effectively, state and federal regulation commissions must pay close attention to the methods with which they are regulating their respective areas of industry. They must carefully w atch the overall expenditures of the industry to ensure that they are within acceptable limits. Performance evaluations should be used to ensure the overall effectiveness of employees working in the public utility industry. Regulating expenditure control by maintaining knowledge over the current markets being served and the overall cost of