Beatrice Lang
The Federal Communications Commission (FCC) is an independent US government agency overseen by Congress, which regulates interstate and international communications by radio, television, wire, satellite, and cable. Electric companies have challenged the FCC's authority over power lines, specifically concerning the One Touch Make Ready (OTMR) rules. The OTMR rules are part of a broader appeal by investor-owned electric utilities, arguing that federal law limits the FCC's authority to matters related to pole attachments and does not include equipment maintained by electric utilities. This dispute highlights the complexities of regulatory authority and the potential for dual regulation by different agencies, such as the SEC and FERC, in the electric utility industry.
| Characteristics | Values |
|---|---|
| Nature of the FCC | An independent U.S. government agency overseen by Congress |
| Authority | The primary authority for communications law, regulation, and technological innovation in the U.S. |
| Areas Regulated | Interstate and international communications by radio, television, wire, satellite, and cable |
| Geographic Scope | All 50 states, the District of Columbia, and U.S. territories |
| Functions | Promoting competition, innovation, and investment in broadband services and facilities |
| Supporting the U.S. economy by ensuring a competitive framework in the communications industry | |
| Encouraging efficient spectrum usage domestically and internationally | |
| Rulemaking Process | "Notice and comment" rulemaking, where the public is notified and invited to comment on potential rule changes |
| Advisory Committees | Established, operated, and overseen in accordance with the Federal Advisory Committee Act to ensure objectivity and accessibility |
| Electric Companies' Objections | The FCC's authority does not extend to equipment maintained by electric utilities, including utility pole attachments |
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What You'll Learn
- Electric companies challenge the FCC's authority over power lines
- The FCC regulates interstate and international communications
- The FCC's rules and regulations are in Title 47 of the CFR
- The Federal Advisory Committee Act ensures advice is objective and accessible
- Regulators aim to provide adequate electricity services at a reasonable cost
Electric companies challenge the FCC's authority over power lines
The Federal Communications Commission (FCC) is a U.S. government organisation with a chief role of managing the electromagnetic spectrum, specifically frequency allocation and spectrum usage. The FCC also works with various other bodies and individuals to increase ownership and employment opportunities, foster diversity of voices and viewpoints over the airwaves, and encourage participation in FCC proceedings.
In 2019, nine privately owned electric companies challenged the FCC's authority over power lines, specifically regarding the One Touch Make Ready (OTMR) rules. The OTMR rules are part of a broader appeal of two decisions made by the FCC in August and September 2018, concerning wireline and wireless deployment. The electric companies argued that the FCC's new utility pole regulations went beyond its authority over telecoms and encroached on the domain of electric utilities and state regulators.
The electric companies also objected to the FCC's expansive set of preemptions that overruled local ownership of assets in the public right of way, such as streetlight poles, and state and local timelines for wireless permit decisions. They argued that federal law limits the FCC's authority to matters attendant to "pole attachments" and that the term "pole attachment" excludes attachments made by an electric utility pole owner. Therefore, the FCC does not have the authority to regulate any equipment maintained by an electric utility.
Publicly owned electric utilities are also appealing the August and September 2018 decisions, arguing that federal law specifically bars the FCC from regulating them. The challenges to both decisions have been consolidated into a single proceeding at the federal ninth circuit appeals court in San Francisco.
It is important to note that the group of nine privately owned electric companies does not include California's major investor-owned utilities, such as Pacific Gas and Electric, Southern California Edison, and San Diego Gas and Electric. This is because California has exercised its option to regulate utility poles itself, and the specific federal rules in question do not apply in the state. However, the core arguments made against the FCC's rules could be made against any OTMR requirements that the California Public Utilities Commission might consider in the future.
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The FCC regulates interstate and international communications
The Federal Communications Commission (FCC) is an independent US government agency overseen by Congress. It is the primary authority for communications law, regulation, and technological innovation in the United States. The FCC regulates interstate and international communications through cable, radio, television, satellite, and wire. Its goal is to promote connectivity and ensure a robust and competitive market. The FCC's rules and regulations are in Title 47 of the Code of Federal Regulations (CFR).
The FCC is directed by five commissioners appointed by the President of the United States and confirmed by the US Senate. No more than three commissioners can be of the same political party at any given time, and none can have a financial interest in any commission-related business. The President also selects one of the commissioners to serve as chairman, and all commissioners, including the chairman, serve five-year terms, except when filling an unexpired term.
The FCC has several offices and bureaus with specific responsibilities. The Office of Engineering and Technology (OET) advises the commission on engineering matters and manages the electromagnetic spectrum, including frequency allocation and spectrum usage. OET also organizes the Technical Advisory Council, a committee of FCC advisors from major telecommunications and media corporations. The Office of Economics and Analytics (OEA) focuses on economic analysis, auction development and use, and implementing consistent agency-wide data practices and policies. The Office of Media Relations (OMR) is responsible for disseminating commission announcements, orders, and proceedings to the media, while the Office of the Secretary (OSEC) oversees the receipt and distribution of documents filed by the public. The Office of Workplace Diversity (OWD) develops policies to ensure a fair and inclusive workplace, free from discrimination.
The FCC's regulations have had a significant impact on the broadcasting industry. For example, in 1941, the FCC issued the "Report on Chain Broadcasting," which led to the breakup of the National Broadcasting Company (NBC) and the creation of the American Broadcasting Company (ABC). The report also addressed network option time and artist bureaus, limiting the networks' broadcasting times and rectifying conflicts of interest.
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The FCC's rules and regulations are in Title 47 of the CFR
The Federal Communications Commission (FCC) is a US government organization that regulates telecommunications and media corporations. The FCC's rules and regulations are outlined in Title 47 of the Code of Federal Regulations (CFR), which is the official legal publication containing the codification of general and permanent rules.
The FCC has various offices and councils that support its operations and advise on specific matters. For instance, the Office of Economics and Analytics (OEA) focuses on economic analysis and auction-related policies, while the Office of Engineering and Technology (OET) manages the electromagnetic spectrum and frequency allocation. The OET also organizes the Technical Advisory Council, comprising advisors from major telecommunications and media corporations.
Another important office is the Office of Media Relations (OMR), which is responsible for disseminating FCC announcements, orders, and proceedings to the media. The Office of the Secretary (OSEC) manages the receipt and distribution of public documents, and the Office of Workplace Diversity (OWD) develops policies to ensure a fair and inclusive workplace, free from discrimination.
The FCC has a long history of regulating the broadcasting industry, dating back to its Report on Chain Broadcasting in 1941, which led to significant changes in the industry, including the breakup of the National Broadcasting Company (NBC) and the creation of the American Broadcasting Company (ABC).
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The Federal Advisory Committee Act ensures advice is objective and accessible
The Federal Communications Commission (FCC) is an independent agency of the United States government responsible for regulating interstate and international communications by radio, television, wire, satellite, and cable. The FCC's responsibilities include managing the electromagnetic spectrum, including frequency allocation and spectrum usage, and enforcing content regulations, such as those against indecency.
The Federal Advisory Committee Act (FACA) is a United States federal law enacted in 1972 that governs the establishment, operation, and termination of advisory committees within the executive branch of the Federal Government. FACA ensures that the advice provided by these committees is objective and accessible to the public. The Act defines an advisory committee as:
> any committee, board, commission, council, conference, panel, task force, or other similar group, which dispenses advice or recommendations to the President of the United States.
FACA has special emphasis on open meetings, chartering, public involvement, and reporting. It prescribes that advisory committees must provide public notice in the Federal Register at least 15 days before a meeting, including all relevant information such as the committee name, time, place, purpose, and a summary of the agenda. The Act also ensures that the committees are composed of diverse members, including subject matter experts, representative members, and Federal Government employees, to provide a range of perspectives and opinions.
FACA created the Committee Management Secretariat, which provides oversight on the government-wide FACA program, including approximately 1,000 Federal advisory committees. The U.S. General Services Administration (GSA) oversees the process and ensures that Congress and the public are informed about the activities, costs, and other indicators of the advisory committees' performance.
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Regulators aim to provide adequate electricity services at a reasonable cost
In the United States, the electricity sector is a complex mix of investor-owned, governmental, and cooperative utilities, with varying degrees of regulation and market liberalisation. The Federal Communications Commission (FCC) is responsible for regulating telecommunications and media corporations, and electric companies have challenged its authority over power lines and equipment. On the other hand, electricity markets and their regulation are primarily handled by the Federal Energy Regulatory Commission (FERC).
Regulators play a crucial role in ensuring that electricity services are adequate and reasonably priced. In traditionally regulated regions, utilities often operate as monopolies, and state regulators oversee electricity prices to protect customers from overcharging. This "cost of service" regulation allows utilities to recover their operating and investment costs, including a "fair" rate of return, known as the revenue requirement. State regulators also ensure that utilities serve all customers and plan for growth by approving power plant investments.
The transition to deregulated markets in some states has introduced competition and potentially lower costs. In these markets, electricity prices are determined by supply and demand, and independent energy suppliers have emerged. However, wholesale market transactions are still subject to FERC regulation, and state commissions continue to play a role in overseeing retail and wholesale electricity prices and power plant procurement.
To maintain reliable and efficient electricity transmission, electricity markets use prices as signals to indicate areas needing more power resources or profitable investment opportunities. Capacity markets, for instance, incentivise power suppliers to commit to meeting future electricity needs. Additionally, ancillary services markets provide specific products that support the electric grid's reliability and performance. These mechanisms help regulators ensure that electricity services are adequate and reasonably priced for consumers.
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Frequently asked questions
FCC stands for Federal Communications Commission. It is an independent U.S. government agency overseen by Congress. The FCC regulates interstate and international communications by radio, television, wire, satellite, and cable in all 50 states, the District of Columbia, and U.S. territories.
Electric companies have argued that the FCC does not have the authority to regulate any equipment maintained by electric utilities. This is because federal law limits the FCC's authority to matters concerning "pole attachments," which do not include attachments made by electric utility pole owners.
The FCC's rules and regulations are in Title 47 of the Code of Federal Regulations (CFR). Most FCC rules are adopted through a "notice and comment" rulemaking process, where the public is notified and invited to comment on potential rule changes.
