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thank you, come again!
Froogle 1.1.1.7
Froogled By:
Elias Makere, FSA, MAAA
Last Froogled:

PUBLIC UTILITY

a company that – because of the nature of its business – can be characterized as a natural monopoly.

For instance, an electric company will have a natural monopoly [over the sale of electricity to that area], since having a single supplier of electricity [for any given area] is the most efficient method of producing/distributing electricity. Since no competition/free-market exists for a public utility’s goods/services, they are subject to government regulation [of the price they may charge; and the means in which they may distribute their goods/services].
Congratulations! You're now Froogled Up™ on what "Public Utility" means!

Feel free to use it throughout your financial/insurance life.

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