Professional Documents
Culture Documents
sustained service for the public at the least possible cost and to protect
and conserve investments which have already been made for that
purpose. A CPCN for the operation of an auto truck line in occupied
territory should not be granted where there is no complaint as to existing
rates and the co. in the field is rendering adequate service. It is the duty
of the PSC to protect rather than to destroy the investment of a public
utility. The policy of regulation upon which the present public utility
commission plan is based and which tends to do away with competition
among public utilities as they are natural monopolies, is at once the reason
that the regulation of an existing system of transportation, which is
properly serving a given field, or may be required to do so, is to be
preferred to competition among several independent systems. While
requiring a proper service from a single system for a territory in
consideration for protecting it as a monopoly for all the service required
and in conserving its resources, no economic waste results and service
may be furnished at a minimum cost.
Prior operator rule - to carry out the purpose and intent for which the PSC
was created the law contemplates that the first licensee will be protected
in his investment and will not be subjected to a ruinous competition. It is
not therefore the policy of the law for the PSC to issue a CPC to a second
operator to cover the same field and in competition with a first operator
who is rendering sufficient, adequate and satisfactory service, and who in
all things and respects is complying with the rules and regulations of the
PSC. Accordingly, a CPC or CPCN ought not to be granted where there is
no complaint as to existing rates and the co. in the field is rendering
adequate services. - regular operators are preferred over irregular
operators
- prior operator is given opportunity to improve service
- prior operator given opportunity to extend lines
- basis of rule : to prevent ruinous and wasteful competition in order that
the interests of the public would be conserved and preserved; so long as
the operator complied with the terms and conditions of the license and the
reasonable demands of the public, it is the duty of the PSC to protect
rather than to destroy its investment