A generic government office, usually at the State or Provicial level, that oversees utility companies such as Power Plants and the Telephone Company.

Back when I worked for a summer in the customer service department of an evil phone company that shall remain nameless, I was instructed to listen for the customer to mention the Better Business Bureau or the State Regulatory Commission. If they did, I was to write the words *****PSC THREAT***** on the trouble ticket so that the linemen or local office workers would know to get the problem fixed faster and better than they usually would.

This was because the PSC would keep a record of complaints, and meet with the phone company about once a month to go over each one that they got, and possibly levy fines, or demand more bribes, or worse.