What financial authority does the Corporation Commission have over public service corporations?

• A. To approve mergers and acquisitions
• B. To determine the rates charged
• C. To issue stock
• D. To provide federal grants

Answer: (B)

The Corporation Commission has the authority to determine the rates charged by public service corporations. This responsibility is essential because it ensures that rates are fair, reasonable, and justifiable for consumers while allowing these corporations to generate adequate revenue to maintain and improve their services. The Commission evaluates the cost of service, the necessity for capital improvements, and other relevant factors when setting these rates, ensuring a balance between the interests of the public and the utilities.

The other options, while related to regulatory functions, do not accurately reflect the primary role of the Corporation Commission. Approving mergers and acquisitions is usually a separate regulatory function and not a primary duty of the Corporation Commission in most contexts. Issuing stock is typically the domain of the corporations themselves under standard corporate governance regulations, not a function performed by a regulatory body. Providing federal grants falls outside the purview of the Corporation Commission, which focuses on regulating utilities and ensuring compliance with state laws rather than administering federal funds.