Utilities

A public utility is a company that maintains the infrastructure for a public service. Public utilities often involve natural monopolies, and as a result are often government monopolies, or (if privately owned) treated as specially regulated sectors. Public utilities can be privately owned or publicly owned. Publicly owned utilities include cooperative and municipal utilities. Municipal utilities may actually include territories outside of city limits or may not even serve the entire city. Cooperative utilities are owned by the customers they serve. They are usually found in rural areas. Private utilities, also called investor owned utilities, are owned by investors. Unlike private companies, private utilities may be listed on the stock exchange. Private, in this context, means not owned by the public or the government.

In poorer developing countries, public utilities are often limited to wealthier parts of major cities, as used to be the case in developed countries in the nineteenth century.

Examples of utilities are:

• Electric power transmission and electricity distribution
• Drinking water purification and distribution
• Sewage treatment and disposal
• Other waste disposal
• Natural gas distribution
• District heat generation and distribution
• Public transport by bus, train, etc.
• Cable television and telephone lines

Developments in technology have eroded some of the monopoly aspects of traditional public utilities. For instance, electricity generation, electricity retailing, telecommunication and postal services have become competitive in some countries and the trend towards liberalization, deregulation and privatization of public utilities is growing.

Types of utilities (acronyms):

• FWSD – Fresh Water Supply District
• MWA – Municipal Water Authority
• MUD – Municipal Utility District
• PUD – Public Utility District
• WCID – Water Control and Improvement District
• WD – Water District
• WS – Water System
• WSC – Water Supply Corporation

See also:

• Lists of public utilities
• Public services
• Liberalization
• Electricity market
• Energy market
• Telecommunications
• Universal service