Which statement best describes city- or county-owned utilities?

• A. They operate without any regulatory oversight.
• B. They operate under public oversight; pricing must reflect costs, ensure access, and meet service standards; subject to regulatory scrutiny.
• C. They are free to set any price regardless of service quality.
• D. They do not have to provide universal access to customers.

Answer: (B)

Public ownership means the utility is owned by the city or county and run to serve residents and the community, not to pursue profit. Because it is a public entity, it operates under public oversight, with pricing tied to the actual costs of delivering service, a commitment to universal access, and clear service standards. Rates and performance are reviewed by elected officials or a public board and often by regulatory bodies to protect customers and ensure fairness, reliability, and affordability.

That setup contrasts with the idea of free or unregulated pricing. Local utilities can’t set any price they want without accountability, and they must meet service standards and provide access to all customers in the service area.