Understanding the Differences Between Privately Held Utilities and Publicly Held Utilities in America

When it comes to utilities, the ownership and responsibility can significantly differ between private and publicly held utilities. In this article, we will delve into the distinctions, responsibilities, and implications of each type of utility in America. Understanding these differences can help both property owners and local governments ensure safety and effective management of utilities.

What Are Private and Public Utilities?

Private utilities, as the name suggests, are owned and managed by private investors. This means that the utility infrastructure is funded by private capital, and the business operations are typically guided by private interests. On the other hand, publicly held utilities are owned and maintained by the city or state government, often using tax revenue to fund their operations and infrastructure.

Private Utilities

Private utilities are not necessarily registered with 811, a service designed to help locate underground utilities before starting construction projects. Instead, the responsibility of locating such utilities falls on the excavator or property owner, and they must undertake these tasks at their own expense. Examples of private utilities range from well-known to less obvious:

Sprinkler or irrigation systems Electric lines running to a detached garage or shop Lines connected to a propane tank or septic system Gas lines under grills and outdoor fire pits Electric dog fence Water lines from the meter property line or stop box to the building Sewer laterals from the tap at the sewer main into the structure or from the property line into the home (depending on the region) Gas pipes after the meter Electric wires after the meter Service wires from the backside of the protector or demarcation point (for phone and cable)

Public Utilities

A public utility is owned by a company or organization that provides essential services to the community. Public utilities typically include electricity, water, gas, communications, and sewer services. Public utility companies are responsible for maintaining their underground facilities and ensuring public safety. An essential part of this responsibility includes registering utilities with 811 and locating utilities in the public right-of-way easement, as well as on private property.

The Implications and Responsibilities

The differences in ownership and management of these utilities can have significant implications for property owners and local governments:

Property Owners

Private utilities: Property owners are responsible for maintaining and locating these utilities, which can be a costly exercise. This includes the cost of hiring professional locators or using non-invasive methods to determine the location of the utilities. Public utilities: Property owners can rely on public utilities companies to locate and manage their infrastructure. However, it is crucial to understand the scope and limitations of these services.

Local Governments and Safety

The misconception that public utility owners are responsible for marking up properties can lead to dangerous outcomes. Ensuring that utilities are properly marked and located is crucial for protecting the public and maintaining safety. This includes:

Registering utilities with 811 Locating utilities in the public right-of-way easement Maintaining private property infrastructure to prevent accidents and inconvenience

Conclusion

Understanding the differences between privately held and publicly held utilities in America is vital for both property owners and local governments. While private utilities require more direct management and cost-sharing, public utilities offer the advantage of centralized maintenance and safety measures. By knowing these distinctions and responsibilities, everyone can contribute to a safer and more efficient utility management system.