Harunia Province has a relatively dry climate and is attracting a fast-growing population that has put increasing demands on its water supply. The two companies that supply water to the region have struggled to keep up with demand and still remain profitable. Yet now they are asking Harunian authorities to write residential water-use regulations that could reduce their revenues and restrict their future flexibility in supplying water profitably.

Which of the following would, if true, most logically help explain why the water-supply companies are asking the authorities to regulate residential water use?

A. The companies are planning large water-transportation and irrigation systems that require the approval of neighboring provinces.
B. The companies believe regulation is inevitable and that having it in place now will allow better planning and thus future profitability.
C. Few, if any, Harunian government officials have investments in the companies or serve on their boards of directors.
D. The companies believe that the population is not likely to continue to grow.
E. Long-term climate projections suggest that greater rainfall will eventually increase the amount of water available.

B

Source: Official Guide 2020