Public utility

Encyclopedia : P : PU : PUB : Public utility

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 public 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 Utility, which in some instances can be Electric power transmission or 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):

CWD – County Water District
FCWCD – Flood Control and Water Conservation District
FWSD – Fresh Water Supply District
ID – Irrigation District
MWA – Municipal Water Authority
MWD – Municipal Water District
MUD – Municipal Utility District
PUD – Public Utility District
WA – Water Agency
WCID – Water Control and Improvement District
WD – Water District
WS – Water System
WSC – Water Supply Corporation

Public utility

See also