The Municipal Electric
Utility AdvantageEighty-two cities and villages in
Wisconsin operate a municipal electric utility. It's the best choice for the community,
its citizens and businesses. Here are a few of the reasons why.
Community Ownership
A municipal utility is owned by the city or village it serves. It exists to provide a
public service to the residents and businesses of the community. Service -- rather than
profit -- is the utility's mission.
Local Control
The rates and services of a municipal utility are governed by the municipality itself,
either through the city council or village board, or an appointed or elected Utility
Commission. This is the most responsive and accessible form of regulation. The utility is
governed by residents of the community who are customers of the utility and are thoroughly
familiar with its operations and services. If a customer has a complaint, he or she
doesn't have to call "1-800-YOU'RE-ON-HOLD" to explain the problem to an
operator in Dallas, Texas! The customer can discuss the problem locally, with another
member of the community, and be assured that the problem will be addressed.
The Public Interest
A municipal utility is operated in the public interest, for the benefit of the
residents and businesses of the city or village -- not for the benefit of stockholders who
live many miles away and may have little interest in the community. In other forms of
utility ownership, there is a tension between the interests of the ratepayers and the
interests of the stockholders -- their interests are not always the same, and they may be
in conflict.
Keeping Dollars in the Community
Here are some of the ways a municipal utility helps to maintain a sound local economy:
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Local ownership means that as much as possible
of the customer's energy dollar stays in the community -- creating jobs and supporting the
local economy.
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Municipal utilities serve as an engine for
economic development. The excellent rates and quality service offered by municipal
utilities are a big advantage for the community in attracting and retaining commercial and
industrial customers.
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Municipal utilities also
make payments in lieu of taxes to the city or village. These
payments are similar to the tax payments that would be made by a
private utility. In 2007, MEUW members' payments in lieu of taxes to their
municipality totaled $14,217,052.00.
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On average, municipal utility rates are lower
than those of other utilities. Lower rates means more dollars available to spend on other
goods and services, which boosts the local economy.
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Community Values
Decisions about the operation of a municipal utility are made locally, by members of
the community, at open, public meetings. Because all decisions are made locally, a
municipal utility is uniquely able to respond to the community's needs, build on the
community's strengths, and reflect and advance the community's values.
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