Progress, an investor-owned utility, cut some of the trees that could take down lines during the state’s strong storms, but residents objected to their removal. In previous years, residents suffered some of the state’s most unreliable electric service. In Winter Park, Florida, city leaders planted the seeds for municipalization in 2000 when Progress Energy approached them about renewing its 30-year franchise agreement. Either way, “there is no magic bullet,” Gupta said. He added that he feels strengthening regulation through states’ public service commissions is sometimes the better option. Even if municipalization is successful, a new public utility is sometimes still stuck with legacy costs, and its policymakers are often subjected to the political winds, he said. Natural Resources Defense Council senior energy economist Ashok Gupta intervenes in rate cases in Missouri. Not everyone is convinced by public utilities, however. “There’s no motivation to maximize returns and extract value from the community because all activities are for the benefit of people in OPPD territories,” Williams said, while noting that his opinions are his own and not representative of OPPD as a whole. In Omaha, residents directly elect a board of directors that develops policy at OPPD, and are therefore working for ratepayers instead of investors. ![]() Public utility proponents like Omaha Public Power District board member Eric Williams also contend the model is generally more responsive to ratepayers. EIA data examined by the American Public Power Association showed public utility rates are on average about 13% lower than those of investor-owned utilities. ![]() An EIA analysis of its numbers found “municipal utility customers experienced the lowest instances of power outages in both frequency and duration” in 2016, though experts note that public utilities tend to operate in urban areas where it’s easier to maintain lines. Public utilities serve about 14% of the nation’s customers, and public power supporters point to a wealth of data showing the utilities outperform their counterparts. “Boulder wants to do it because of renewable energy, we wanted to do it to improve reliability and get underground, and some places do it because rates are high - the community decides why, but the beauty of community electric is that it’s a community choice,” he said. He led a municipalization effort in the Orlando suburb during the early 2000s. The model, therefore, is structurally geared toward the needs of the community it serves, which is why so many find it appealing, said Randy Knight, city manager of Winter Park, Florida. Still, supporters argue that public utilities are inherently better for ratepayers because they remove profit-driven investors from the equation. Sign up for free to get the latest delivered straight to your inbox. Get connectedĮvery morning, thousands of energy professionals turn to our newsletters for the day’s most important news. Some in the industry, though, say they haven’t necessarily moved toward renewables or enacted more progressive policies faster than investor-owned utilities. Energy Information Association (EIA) does show municipal utilities generally are more reliable and have lower rates. ![]() The experience of communities where public utilities already exist suggests the model isn’t a panacea, but federal data from the U.S. Similar proposals, in some cases for entirely different reasons, are also moving forward in Boulder, El Paso, Pueblo, Chicago, Pittsburgh, Maine and elsewhere. Lynch, the former president of the California Public Utilities Commission, who recently told the Los Angeles Times, “Public power is generally cheaper, safer, cleaner - with some exceptions - and more reliable.” Among those pushing for a statewide public system is Loretta M. City leaders in San Jose and San Francisco are already exploring how to take over PG&E’s grid. The revelations are fueling calls for municipalization of the beleaguered utility. ![]() Gavin Newsome said the company had “been caught red-handed over and over again, lying, manipulating or misleading the public.” A federal judge found the company increased investor dividends instead of removing trees that could pull down wires, while an audit found the company diverted $123 million earmarked for burying lines underground over the last 10 years. As California officials consider a public takeover of PG&E, the concept has already shown results in other places.Īs wildfires sparked by downed Pacific Gas and Electric wires have burned across California in recent years, so has public outrage with the private utility giant.Ĭritics say PG&E has prioritized profits over system maintenance.
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