Franchise Monopoly

Franchise Monopoly
  Under this system, a utility has the right to be the sole or principal supplier of electric power at a retail level in a specific region or area knows as the franchise service territory. In return for its sole supplier privilege, the utility has an obligation to serve anyone who requests service, and agrees to be accountable to state and/or federal regulatory bodies that regulate the utility's performance, accounting procedures, pricing structures, and plant planning and siting.

Energy terms . 2014.

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