The Alabama Public Service Commission, commonly called the PSC, was established by an act of the Alabama Legislature in 1915 to primarily replace the State Railroad Commission. The PSC's responsibility was expanded in 1920 to include regulating and setting rates that utility companies charge their customers for electricity. The legislature expanded the PSC's responsibilities in later years to include those companies that provide gas, water, and communications, as well as transportation common carriers such as trucking and air carriers. The PSC effectively determines the rate of profits that most of these companies are allowed to earn. However, some of its traditional responsibilities have passed to the federal government with the passage of the Federal Aviation Act of 1994 and the Federal Communications Act of 1996.
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