•  
  •  
 

Authors

Dennis Piercey

Abstract

According to the United States Supreme Court's decision in Central Hudson Gas & Electric Corp. v. Public Service Commission, a state may not ban public utility advertising that promotes the use of electricity, even though the advertising conflicts with the state's interest in energy conservation. In 1973, the Public Service Commission of New York promulgated a regulation that prevented public utility companies from advertising to promote the use of electricity. That restriction was a response to the energy crisis caused by the OPEC nations' oil embargo against the United States in 1973-74. Approximately three years later, when the fuel shortage had eased, the commission considered whether to continue the prohibition. After hearing public comments, the commission decided to retain the regulation. Central Hudson Gas & Electric Corp. responded by challenging the commission's power to restrain promotional advertising. On appeal from a judgment in favor of the commission, the Supreme Court concluded that the utility company's right to freedom of speech had been violated and invalidated the regulation.

Share

COinS