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How Does The Local Government Regulate The Utilities Sector?

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Most people receive their utility services from private companies that are regulated at the Federal, State, and local government level. These private utility companies must abide by regulations made at the State and local level by public service commissions. Whether the company specializes in water or energy, State and local governments will regulate the industry to look out for the public’s best interests and to ensure all utilities are natural monopolies. So, you may be wondering: how does the State government regulate utilities we all rely on? Read below to learn more. 

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How Government Regulates Water

When it comes to water regulations, State governments regulate areas such as production, prices, and distribution. However, the way water is regulated varies amongst States. For example, California is heavily regulated because of the water supply limitations and the high demand of the agriculture industry. However, in some cases, various municipalities put regulations on water to serve low-income housing communities. 

Water is not particularly easy to distribute to cities and there is a lot of controversy around it. As a result, governments regulate the industry to ensure the utility company properly controls its distribution. Public safety also plays a heavy role in regulation as water utility companies supply communities with clean, potable water.

How Government Regulates Electric Companies

Much like water utility companies, electric utilities are regulated by state and local agencies. Electric utilities govern the prices charged, the terms of services to consumers, budgets, and construction plans. Regulations ensure that fair pricing for service is offered and that service is adequate and responsive to consumer needs. The production and distribution of electricity are also heavily impacted by environmental and public health regulations through the emission of pollutants, land use, and noise. 

The Importance of Staying On Top of Local Government Agendas

In almost every industry, businesses are impacted by local government regulations that can either hinder or support their sector. Utility companies are constantly faced with changing regulations and it’s easy to get lost in the shuffle. It’s imperative that these organizations find a way to stay on top of the latest agendas that could have an impact on their industry. 

Let Agenda Discovery Be Your Alert System

With Agenda Discovery’s easy to use legislative tracking tool, anyone can stay on top of local government agendas that could impact their business. Whether they’re in the utility, financial, or medical industry, we’ve made it easy to track policies that matter to any business. By plugging an unlimited amount of keywords, business leaders can feel empowered and secure knowing they have our software on their side. Contact us today to receive a demo!


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