Water

The Public Utilities Commission (PUC) is tasked with ensuring that water utilities operate in a safe and adequate manner, serving all customers on equal terms, and that the rates they charge are just and reasonable.  

Water utilities are natural monopolies which means that it costs a great deal to set up the infrastructure that allows them to provide service to customers and the more people that receive the service, the more the costs can be spread out. If a competitor wanted to set up service to those customers to give them an option for service, it would be exceedingly expensive and wasteful. This is why the PUC regulates these types of utilities, to ensures that people are receiving just, equitable and reasonable rates and fair service. Water utilities provide water used for drinking as well as fire suppression. 

The commission regulates over 150 public water utilities, however, not every water system is a utility regulated by the PUC.  There are two types of public water utilities: 

Consumer Owned Water Utilities (COUs):

Most of Maine’s water utilities are owned entirely by their consumers. These consumer owned utilities are: 

• Water departments that are operated by municipalities (towns); or
• Water districts which are quasi-governmental organizations run by a board of trustees (made up of elected, local community members).

Investor-owned water utilities (IOUs):

These are for-profit companies that own and operate a water utility.  These privately owned companies make up a minority of Maine’s water utilities.