Local Government Practice Test 2026 - Free Local Government Exam Practice Questions and Study Guide

Public ownership means the utility is owned by the city or county and run to serve residents and the community, not to pursue profit. Because it is a public entity, it operates under public oversight, with pricing tied to the actual costs of delivering service, a commitment to universal access, and clear service standards. Rates and performance are reviewed by elected officials or a public board and often by regulatory bodies to protect customers and ensure fairness, reliability, and affordability.

That setup contrasts with the idea of free or unregulated pricing. Local utilities can’t set any price they want without accountability, and they must meet service standards and provide access to all customers in the service area.