When the utility provider for a given city or municipal region is owned by the city or region itself, it is referred to as a municipal utility. A muni is a type of public utility. Regulation is usually controlled by a civic agency, usually a public utilities commission.

Most munis are self-regulating and not subject to state regulations. They can raise capital for construction and maintenance using tax-exempt bond issues, set their own rate schedules and policies provided they fall within state and federal regulations, and optionally choose how and when they wish to deregulate themselves. Once a muni is deregulated, it becomes subject to the same federal and state regulations as any privately-held utility. Munis can be directly owned by a municipality or function as self-governing bodies organized as separate public corporations with a degree of independence from the municipality.

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