UMC Regulatory and Legal Compliance 3 — Questions and Answers
Question 1: What is the primary purpose of a state Public Utility Commission (PUC)?
- To build new utility infrastructure
- To regulate rates and service quality of investor-owned utilities (Correct answer)
- To manage federal energy subsidies
- To operate public power systems
Correct answer: To regulate rates and service quality of investor-owned utilities
State PUCs regulate investor-owned utilities by setting rates, service quality standards, and ensuring utilities operate in the public interest.
Question 2: Under the Resource Conservation and Recovery Act (RCRA), how are hazardous wastes generated by utilities primarily regulated?
- Through voluntary industry guidelines
- Through a cradle-to-grave manifest tracking system (Correct answer)
- Only at the point of final disposal
- Through annual self-certification reports
Correct answer: Through a cradle-to-grave manifest tracking system
RCRA's cradle-to-grave system tracks hazardous waste from generation through transportation, treatment, storage, and final disposal using manifests.
Question 3: A water utility exceeds the maximum contaminant level for lead. Under SDWA, which notification is required?
- Annual Consumer Confidence Report only
- Immediate public notification within 24 hours for acute health risks (Correct answer)
- Quarterly billing statement insert
- Notification only to the EPA, not customers
Correct answer: Immediate public notification within 24 hours for acute health risks
Violations posing acute health risks (like high lead levels) require public notification as soon as possible but no later than 24 hours under SDWA rules.
Question 4: Which type of legal doctrine holds a utility strictly liable for harm caused by abnormally dangerous activities, even without negligence?
- Respondeat superior
- Strict liability (Correct answer)
- Negligence per se
- Sovereign immunity
Correct answer: Strict liability
Strict liability holds utilities responsible for harm from ultrahazardous activities (like storing large quantities of chemicals) regardless of whether they acted negligently.
Question 5: What does 'eminent domain' allow a utility to do?
- Set rates without regulatory approval
- Acquire private property for public use with just compensation (Correct answer)
- Exempt itself from environmental regulations
- Operate across state lines without a federal license
Correct answer: Acquire private property for public use with just compensation
Eminent domain (condemnation) allows utilities to acquire private land necessary for infrastructure development, provided they pay fair market value.
Question 6: Under the Americans with Disabilities Act (ADA), what obligation does a utility have regarding its customer service facilities?
- None, as utilities are exempt from ADA requirements
- Facilities must be accessible to individuals with disabilities (Correct answer)
- Only facilities built after 2000 must comply
- Compliance is voluntary for regulated utilities
Correct answer: Facilities must be accessible to individuals with disabilities
The ADA requires that utility customer service centers and public-facing facilities be physically accessible to individuals with disabilities.
Question 7: Which document formally authorizes a utility to discharge pollutants into waters of the United States under the Clean Water Act?
- Facility Operating License
- NPDES Permit (Correct answer)
- Environmental Impact Statement
- Stormwater Pollution Prevention Plan
Correct answer: NPDES Permit
The National Pollutant Discharge Elimination System (NPDES) permit, issued by EPA or authorized states, is the legal authorization to discharge pollutants to surface waters.
UMC Regulatory and Legal Compliance 3
What is the primary purpose of a state Public Utility Commission (PUC)?