Regulation of public utilities is a comparatively new field in Latvia and not much investigated. Few scientific publications on the problems of regulation of public utilities aimed at optimization of operation of monopoly companies in the country prove the irregular and fragmentary research carried out. The Author has analysed experience and efficiency of Public Utilities operations in Great Britain, USA, Canada, Scandinavian and other countries. In order to analyse operation of public utilities and the chance to raise impact of public utilities regulation economical and political institutions on monopoly companies she has examined results of the research carried out by several oversees scientists. The Author analysed mainly operation of local government regulators and public utilities regulated by local government regulators (water supply, heat supply and household waste management. As a result of the research a new concept project of regional public utilities regulatory system has been worked out for the planning regions in Latvia.