Electric power production and distribution is an industry that is dominated by natural monopolies. Companies are given a monopoly to operate in an area by local, county, or state government, and in return, they have a legal obligation to provide electricity on demand to all customers in a geographic area. As a result, state and federal agencies extensively regulate utility companies to ensure customers and businesses are treated fairly. At the state level, an elected or appointed commission sets the rate of use for consumers, based upon the request of the providers. By law, these rates must allow the utility company to recover its cost of service, as well as to make a profit on their investment. Which form of government regulation does this passage primarily describe? taking over a company to operate it placing price limitations on a producer requiring public ownership of an industry insisting on approval over decision making.