Cities Weigh Taking Electricity Business From Private Utilities

[groovedaddy]

Across the country, cities are showing a renewed interest in taking over the electricity business from private utilities, reflecting intensifying concerns about climate change, responses to power disruptions and a desire to pump more renewable energy into the grid.

Boulder, Colo., for instance, could take an important step toward creating its own municipal utility, among the nation’s first in years, as soon as next month. A scheduled vote by the City Council comes after a multiyear, multimillion-dollar study process that residents, impatient with the private electric company’s pace in reaching the town’s environmental goals, helped pay for by raising their own taxes.

And while Boulder’s level of activism may be unusual, given its liberal leanings and deep-seated concerns over climate change and the environment, the desire to take control of the electricity business is not. Officials and advocates in Minneapolis and Santa Fe, N.M., are considering splitting from their private utilities, while lawmakers in Massachusetts are trying to make it easier for towns and counties to make the break.

Over the years, many localities have examined creating municipal utilities, usually around the time their franchise agreements with private electric companies are to expire. But officials and advocates are now examining municipal utilities as concerns rise over carbon emissions from fossil fuels, especially coal, and as the ability to use renewable energy sources like solar and wind increases.

http://www.nytimes.com/2013/03/14/business/energy-environment/cities-weigh-taking-electricity-business-from-private-utilities.html?nl=todaysheadlines&emc=edit_th_20130314&_r=0

[sinkingfeeling]

1. Used to be that way.

[groovedaddy]

2. Yes. Dennis Kucinich became Mayor of Cleveland in large part

because of his effort to keep their electric utility from being privatized. A study was done years later that showed substantial savings by keeping the utility in the commons.

[madokie]

5. The next town over from here owns their utilities

and it cost close to a hundred bucks a month less to live there than it does here where we live due to that. The city buys the electric, water and gas then resells it to the people. Its a win, win for everyone there. Due to their buying so much of each they are able to secure a better price than individuals can and the city in turn passes the savings on to their citizens.

[zipplewrath]

3. Winter Park, Fl

High end community here did it a few years ago. It was less about costs and the environment and more about quality. They wanted more buried lines and fewer power losses. Had battles for years with the utility so they "bought" it and started the improvements on their own. Dunno why it doesn't occur to many medium size towns that they are probably better off running their own.

[drm604]

4. Interesting.

It's good to see cities moving in the opposite direction from privatization. A reasonable argument can be made that electricity should be part of the public infrastructure.

[groovedaddy]

6. Yes, remember what Enron did in California

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