MGMT 520 Week 2 Case Analysis, Central Hudson Gas & Electric Corp. v. Public Service Commission of New York_DeVry University, Keller Graduate School of Management

MGMT 520 Week 2 Case Analysis, Central Hudson Gas & Electric Corp. v. Public Service Commission of New York During the 1973 oil embargo, in an effort to reduce consumption, the Public Service Commission of New York imposed a ban on promotional advertisement by utility companies due to findings that “the utility system in New York State does not have sufficient fuel stocks or sources of supply to continue furnishing all customer demands for the winter” (Oyez, n.d. p. 447). The injunction barred the use of any language promoting the use of electricity from marketing materials; allowing only the use of advertisements intended for informational purposes. By 1976, the oil crisis had subsided. However, in February 1977the Public Service Commission of New York issued a policy extending the ban on marketing materials intended to generate sales. The Commission’s intention was to continue conservation efforts as means of limiting unnecessary growth of electricity use. And align the state with national policy on energy conservation…………….Continued