Final answer:
The most damaging effect of taste and odor problems for a water utility is aesthetic impact.
Step-by-step explanation:
The most damaging effect of taste and odor problems for a water utility is aesthetic impact. While taste and odor issues may not have direct health concerns, they can lead to a decrease in consumer satisfaction and confidence in the water utility. This can result in a loss of customers, decreased revenue, and potential legal and regulatory challenges.