General Utility Issues

For over a century, the U.S. has regulated utilities to protect the public interest and prevent monopoly pricing. Utilities, such as electricity, gas, and water providers, have historically been granted “exclusive service territories.” This means that within a specific geographic area, only one utility company can provide a particular service. Regulations and oversight ensure that these monopoly providers do not charge excessive prices or engage in other anticompetitive practices that could harm consumers.  

State laws require public utilities to charge all consumers fair and reasonable rates and provide service that meets quality and safety standards. Regulators determine a reasonable profit that utilities may earn on their investments. Regulation and oversight are critical to ensuring access to affordable, reliable essential utility services. In addition, a robust and independent consumer advocacy office, transparency in decision-making processes, and increased public participation are key.

Unfortunately, in recent years, some regulators have decreased regulation, and some have even eliminated traditional rate regulation. As a result, telecommunications markets and some energy markets have opened to unregulated or lightly regulated providers. This decrease in regulation has resulted in less oversight and often more problems for consumers.