I think the only limits for the are those that may have been written into either the corporation commission's edicts or the actual contract with the customer... having said that, the utility has concerns with providing a service that provides good quality to their customers... afterall, complaints back to the commissions can be detrimental in many ways -- for non-investor owned utilities, the jobs of the commissioners or utility personnel can be on the line..
again, my experience is that most (not all) problems w/ THD come from the customers' side, reflecting back onto the system... for instance a bank of spot welders at a local manufacturing facility can create havoc on other customers on that line.. it's to everyones interests then for the manufacturer to address the problem, and the utility is often willing to help (esp. if there is added revenue involved)...
if you are having problems, contact your utility... they should be able narrow down the problem to your side or potentially another customer in your area... and if there a number of customers having problems, it will get addressed fairly quickly (but allow some time)
Please note that not all "power quality" problems come through the utility wires... I am aware of one power quality issue, where a customer's computer system kept crashing, etc. and of course the utility was the likely suspect.. After several weeks of investigation, it was determined that the professional office next door didn't have radiation barriers in the walls -- every time they took an x-ray, the customer's computers went berserk... the issue was rectified immediately..