public utility

public utility definition - business

public utility

A private business that provides an essential public service while operating in an industry that has large economies of scale. Public utilities are offered a fair return on their capital in return for tight regulation by government. Electric utility companies are examples of public utilities, although governments have permitted many of these businesses to form unregulated subsidiaries.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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