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A Utility easement may contain ANY type of utility: sanitary sewer, water, storm sewer, telephone, electric, gas, cable, etc. The Utility may be underground or overhead. You can use a utility easement for almost anything that you use your yard for.
You can refuse a utility easement request, especially if there are alternate properties that the company could use instead of yours.
A municipal water company may have an easement to access the private property and place pipes running through the property in order to best serve the utility needs of the community. The property owner remains the title owner, but the utility company's easement will also be listed in the property paperwork.
Generally, the owner of any easement has a duty to maintain the easement. If the easement is owned by more than one person, or is attached parcels of land under different ownership, each owner must share in the cost of maintaining the easement pursuant to their agreement.