A public utility refers to a company or organization that provides essential services to the public, such as electricity, water, natural gas, telecommunications, sewage treatment, and sometimes public transportation. Public utilities are considered essential for everyday life and typically operate under government regulation to ensure that they provide reliable, safe, and reasonably priced services to the public.
Public utilities can be owned and operated by government entities (municipal utilities) or by private companies that are subject to government oversight. The regulation is often put in place to prevent monopolistic practices, as these services are typically provided by a single utility company within a specific geographic area, leaving consumers with little or no alternative.
In the context of real estate, public utilities are important because the availability and quality of utility services can significantly impact property value, development potential, and overall livability. Access to utilities is a key consideration in real estate transactions and development projects, as properties need to be connected to essential services like electricity, water, and sewage systems.
