I pick **D** -- Any or all of the above, as deemed appropriate by a Public Utilities Commission and economists / engineers they supervise.
We do this. A LOT. Public Utility regulatory bodies have MORE THAN A CENTURY OF PRACTICE IN NEARLY EVERY STATE, in multiple similar infrastructure types. Stop pretending this is impossible. It's a shitty straw man invented by the same deregulatory wonks that got us into this mess in the first place.
I'm neither Socialist nor Libertarian. Both are false utopias with no shining example. I like REGULATED MARKETS. CUZ THAT SHIT JUST WORKS.