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Public Utilities, Second Edition

Old Problems, New Challenges

David E. McNabb

A thoroughly updated introduction to the current issues and challenges facing managers and administrators in the investor and publicly owned utility industry, this engaging volume addresses management concerns in five sectors of the utility industry: electric power, natural gas, water, wastewater systems and public transit.
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Chapter 2: Public utility policy issues

David E. McNabb


Chapter 2 explains the meaning of public policy and how the American Federalism tradition shapes policy in the five public utility sectors covered in the text. Public utility managers are guided in their everyday organizational activities by two levels of policy: internal and external. Internal policy includes the normal levels of organizational and management policies and procedures that shape the business enterprise. Internal policy is a product of the vision of senior management and board of directors, the organization’s mission, its resources, and the existing organizational climate and culture. Elements of internal policy are discussed in Chapters 14 through 17. This chapter focuses on external policy forces.

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