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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 8: Public transit utilities

David E. McNabb


There are three major classes of public transportation systems: (1) those that serve metropolitan areas, (2) rural area systems, and (3) services managed by nonprofit organizations that operate demand response services exclusively. Nonprofit organizations are eligible for federal financial assistance to purchase vehicles and offer their demand services. Not included are school bus systems. Transit system buses, ferries, trains, and planes are all regulated by the U.S. Department of Transportation if they are used to transport people or cargo across state lines. Buses, ferries, and trains that do not cross state lines are regulated by the states in which they are registered and operate. The Americans with Disabilities Act of 1990 (ADA) mandated that no person with a disability may be denied the opportunity to use the public transportation system.

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