A public utility (usually just utility) is an organization that maintains the infrastructure for a public service (often also providing a service using that infrastructure). Public utilities are subject to forms of public control and regulation ranging from local community-based groups to state-wide government monopolies. Common arguments in favor of regulation include the desire to control market power, facilitate competition, promote investment or system expansion, or stabilize markets. In general, though, regulation occurs when the government believes that the operator, left to his own devices, would behave in a way that is contrary to the government’s objectives. In some countries an early solution to this perceived problem was government provision of the utility service. However, this approach raised its own problems. Some governments used the state-provided utility services to pursue political agendas, as a source of cash flow for funding other government activities, or as a means of obtaining "hard cash". These and other consequences of state provision of utility services often resulted in inefficiency and poor service quality. As a result, governments began to seek other solutions, namely regulation and providing services on a commercial basis, often through private participation.

The term utilities can also refer to the set of services provided by these organizations consumed by the public: electricity, natural gas, water and sewage. Telephone services may also be included.

In the United States of America they are often natural monopolies because the infrastructure required to produce and deliver a product such as electricity or water is very expensive to build and maintain. As a result, they are often government monopolies, or if privately owned, the sectors are specially regulated by a public utilities commission.

Developments in technology have eroded some of the natural 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, but the network infrastructure used to distribute most utility products and services has remained largely monopolistic.

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.

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, but in some developing countries utilities do provide services to a large share of the urban population, such as in the case of water and sanitation in Latin America.

Noun

utility (plural utilities)

1. The state or condition of being useful; usefulness.
2. Something that is useful.
3. (economics) The ability of a commodity to satisfy needs or wants; the satisfaction experienced by the consumer of that commodity.
4. (business, finance) A service provider, such as an electric company or water company or its securities.
5. (computing) A software program specifically designed to help manage and tune the computer hardware, operating system or application software, and perform a single task or a small range of tasks; as opposed to application software which tend to be software suites.
6. (sports) The ability to play multiple positions.

• (state of being useful): usefulness, note
• See also Wikisaurus:utility

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• Atmos Energy
  atmosenergy.com
  Natural gas utility. Provides regulated service to customers in 12 states ranging from the Rocky Mountains to the Southeast, and manages pipelines and other industrial and municipal services in a larger region.
• Xcel Energy
  xcelenergy.com
  Utility supplier of electric power and natural gas service in Colorado, Kansas, Michigan, Minnesota, New Mexico, North Dakota, Oklahoma, South Dakota, Texas and Wisconsin.
• El Paso Electric Company
  epelectric.com
  Provides electricity to customers in West Texas and Southern New Mexico.