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The utility industry provides essential services like electricity, natural gas, and water. These services are crucial for daily life and are often considered natural monopolies due to high infrastructure costs and economies of scale.12

In the United States, these companies are typically privately owned but heavily regulated by government commissions. Regulation ensures that utilities serve all customers equitably, operate safely, and charge just and reasonable rates.12

The utilities sector includes electric, gas, and water companies. Some firms offer integrated services, while others focus on specific areas like independent power production or renewable energy. Due to their stable demand, utility stocks are often favored by investors seeking consistent returns and dividends, especially during economic downturns.1

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