A public utility is an entity that provides the general public with essential goods and services such as electricity, natural gas, energy, water, sewer, heat, telecommunications (telephone, fiber optic or broadband internet), railroad, and rail transit.
Public utilities (goods and services) are often provided by a public utility corporation that is essentially given a monopoly over the provision of the good or service in a certain geographic area—and exemption from antitrust and unfair competition laws—in exchange for certain governmental restrictions and regulations. Public utility companies are often regulated by a governmental Public Utility Commission (PUC).
The laws and rules that govern public utilities are usually located in state or federal statutes—depending on whether the utility is regulated by the state or federal government. For example, many states have a public utilities code—sometimes called a public utility regulatory act—or provide for public utility corporations and their regulation in the state administrative code. The Federal Energy Regulatory Commission (FERC) is one example of a PUC at the federal level.
In Texas, public utilities are regulated entities that provide essential services such as electricity, natural gas, water, and telecommunications to the public. These utilities are typically granted a monopoly within a certain geographic area in exchange for adhering to regulations and oversight by the government. The primary regulatory body in Texas for these services is the Public Utility Commission of Texas (PUC). The PUC oversees the rates, operations, and services of utilities to ensure they are fair and reasonable to consumers while allowing the utilities to maintain financial stability. State statutes governing public utilities can be found in the Texas Utilities Code, which outlines the powers and duties of the PUC and the regulatory framework for utilities operating within the state. Additionally, the Federal Energy Regulatory Commission (FERC) regulates certain aspects of the energy industry at the federal level, particularly in relation to interstate electricity sales, wholesale electric rates, hydroelectric licensing, natural gas pricing, and oil pipeline rates.
