What is the difference between a regulated and an unregulated utility?

A regulated utility is one that is subject to governmental regulation. This means the state government sets the rates for the services the utility provides and also enforces rules regarding safety and the quality of service. This helps to keep prices stable and ensures customers are receiving a quality product. An unregulated utility is one that is not subject to government regulation. Rates for services are set by the utility company, which makes them able to adjust the prices of services as they see fit. Safety and quality of service rules are not enforced by the government, so customers may not be receiving the best possible service. In Arkansas, all public utilities are regulated by the Arkansas Public Service Commission. This includes electricity, natural gas, water and wastewater services. All other utilities are unregulated and the rates and service quality are determined by the individual utility companies.

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