Municipalization of the Distribution System - PowerPoint PPT Presentation

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Municipalization of the Distribution System

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... of the Distribution System. Patrick Hyland. Executive Director ... Would make local officials accountable for the cost and quality of a critical public service ... – PowerPoint PPT presentation

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Title: Municipalization of the Distribution System


1
Municipalization of the Distribution System
  • Patrick Hyland
  • Executive Director
  • Northeast Public Power Association

2
Municipal Electric Utilities in Massachusetts
  • 41 distribution systems in Commonwealth serving
    48 cities and towns
  • Most in service for last century most recent
    municipal utility formed in 1996 (Devens Commerce
    Center)
  • Approximately 380,000 meters served
    approximately 840,000 residential consumers

3
Municipal Electric Utilities in Massachusetts
(cont.)
  • Approximately 7.5 million MWH sales in 2002
  • Approximately 703 million in revenues in 2002
  • 1,340 employees
  • Power supplied through jointly-owned generation
    facilities, power sales agreements (through
    MMWEC), bilateral contracts, and some on-site
    municipal generation

4
Characteristics of Municipal Utilities
  • Most are governed / regulated by Municipal Light
    Boards, pursuant to MGL, Chapter 164
  • Subject to all laws governing public agencies
    (open meeting, freedom of information, etc.)
  • Utility assets owned by community no stock
    ownership
  • Receive preference in the purchase of hydropower
    from federal projects or from other public
    entities

5
Characteristics of Municipal Utilities (cont.)
  • Not-for-profit public entities no federal tax
    liability
  • Virtually all make payments in lieu of property
    taxes to municipal governments
  • Able to raise capital through tax-exempt bonds
  • In Massachusetts, municipal utilities are not
    subject to state restructuring legislation did
    not have to divest generation or open systems
    to competitive suppliers

6
H 1468 Public Power Perspective
  • A significant improvement over existing state law
  • Puts decision over public/private ownership and
    management in hands of local citizens, not
    incumbent utility
  • Assures an impartial / objective determination of
    plant value, which is principal obstacle to
    municipalization

7
H 1468 Public Power Perspective (cont.)
  • Would enable communities to invest in local
    infrastructure (similar to water, sewer, streets)
    to improve service and coordinate physical
    planning
  • Would enable communities to lower distribution
    costs through tax-exempt financing, reduced
    overhead and non-profit operations
  • Would make local officials accountable for the
    cost and quality of a critical public service
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