The Birmingham age-herald., 1923-09-30
A COMMISSION SHOWS VISION

In a recent decision involving the question of granting certificate of convenience and necessity to the Ala bama Power Company to permit the construction of an electric transmits sion line from point near Montgom- cry to Greenville, the Alabama Public Service Commission, in granting the application, took occasion to outline the policy and view of the commission with regard to such certificates. The existence of reasonable necessity" for the extension contemplated does not, in the view of the commission, furnish sufficient reason, unless the applicant is able to show that "there is a reasonable guaranty of sufficient business to warrant to the public successful operation of a permanent utility enterprise, and in the case of an extension of an existing system, that the allowance thereof will not cast an undue burden upon present or future customers of the utility"
 In other words, the question of par amount importance is "whether the authorization of the investment is jus tified, and whether the rights, welfare and interest of the general public will be advanced" In casting about foc precedent in such rulings the Alabama commission finds that ''it would ap- pear. from decisions of other commits sions in similar cases that the sole issue is considered to be whether the public convenience and necessity re- quires and will require the service" In the language of the Idaho commits sion, as quoted by the Alabama con- mission in it's opinion: Extensions should not be made by public utility where the immediate and prospective revenues to be received from such ex- tensions are out of proportion to the cost of making the extensions. The expenditures for extensions must be guarded in order to protect the exist ing consumers against exorbita1t rates"
 Thereupon the Alabama commission reaches this significant and wise con- clusion: Public utilities have large discretionary powers in the conduct and management of their business, and should properly be made to assume the risk of bad investment or over-invest- ment in the establishment or extension of their systems" Thus the commits sion correctly interprets it's primary obligation as being towards the public and not towards the utility. Rates are fixed in accordance with the cost and replacement values of utility property; therefore, it is of impott- ance for the commission to determine whether any proposed extension will be self-supporting or whether it will, for the service to few, throw upon the original patrons of the service ar additional rate charge, in order that the utility may receive its legal earn ing on the extension. The commission has declared that it will not grant ex- tensions unless the prospective busi- ness justifies the investment, nor will it, in granting permission for new utility ventures, hold the public re- sponsible for the financial success of such ventures.
 It is evident that the Alabama Pub lie Service Commission Is sincerely and honestly seeking to discharge its du- ties in accordance with the intent as we'll as the letter of the law. The commission is elected by the people to protect the public welfare and guard the public against any private en- croachment that will place an unjusti liable financial burden upon the pee pie or upon any community. The conl- missions authority is well-entrencbed in the law, and the people are glad that the commission seeks to exercise that authority primarily in the public behalf.