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It's an instance of the differences in spelling between the American and the British English. The online Webster says, in part (http://www.m-w.com/dictionary/utilization):
"Etymology: French utiliser", so the original English spelling was, probably, "-sation". Check out this page on American vs. British spelling differences: http://www2.gsu.edu/~wwwesl/egw/jones/differences.htm

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