UMC Regulatory and Legal Compliance 3

Question 1

What is the primary purpose of a state Public Utility Commission (PUC)?

Accepted Answer

To regulate rates and service quality of investor-owned utilities

Answer

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?

Accepted Answer

Through a cradle-to-grave manifest tracking system

Answer

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?

Accepted Answer

Immediate public notification within 24 hours for acute health risks

Answer

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?

Accepted Answer

Strict liability

Answer

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?

Accepted Answer

Acquire private property for public use with just compensation

Answer

Eminent domain (condemnation) allows utilities to acquire private land necessary for infrastructure development, provided they pay fair market value.

(UMC) Utility Management Certification Practice Test

(UMC) Utility Management Certification Practice Test

UMC Regulatory and Legal Compliance 3