Central Hudson vs. Public Service Commission of New York
... Commission ordered electric utilities in New York State to stop all advertising that promote the use of electricity. The order was originally based on the Commission's finding that the interconnected utility system in New York State did not have enough fuel stocks or sources of supply to continue to accommodate all customer demands for the winter of 1973-1974. The Commission adopted the restriction because it was likely to result in some dampening of unnecessary growth in energy consumption. The Commission's order only permitted informational advertising that is designed to encourage shifts of consumption from peak demand times to periods of low electricity demand. Information advertising would not seek to increase consumption of electricity, but would invite a leveling of demand throughout any given 24-hour period. In 1977, when the fuel shortage decreased, the Commission requested comments from the public on its proposal to continue the ban on promotional advertising. Central Hudson Gas & Electric Corporation refused the ban on First Amendment grounds. After reviewing the public comments, the Commission extended the prohibition in a Policy Statement issued on February 25, 1977. The Policy Statement divided advertising expenses into two broad categories, the first being promotional. Promotional advertising intends on stimulating the purchase of utility services. The second type of advertisement, institutional and informational advertising, is not clearly in...