Energy Utility Basics
Wisconsin Public Utility Institute
October 1, 2012
Madison, Wisconsin
Public Power in
Wisconsin
The “municipal electric utility” business
model
David J. Benforado, Executive Director
Municipal Electric Utilities of Wisconsin (MEUW)
Public Power Origins
 In the late 1890’s and early
1900’s, investor-owned
utilities (for-profit) were
busy stringing wires and
lighting cities
 Rural Wisconsin (and
America) was not going to
produce the necessary
profits for energy
companies to succeed in
these areas
Public Power Origins
 Local government leaders
recognized the tremendous
economic development benefits of
electricity and were not content to
“wait” until it was brought to them
 Wisconsin’s first community-owned
electric utility was started in New
Richmond in 1890
 20 more formed by 1900
 28 more by 1910
 17 more by 1920
Status of Public Power in
Wisconsin
 There are 82 municipal electric
utilities in Wisconsin.
 Collectively:
 $717 million annual revenues.
 Distribute 11 percent of electricity
in Wisconsin.
 Serve 281,000 customers.
Demographics of Public
Power in Wisconsin
 Average public power community
has about 5,700 residents.
 Customer base is a mix of
residential, commercial and
industrial. A small minority serve
farms. Heavier industrial load in
general.
 Several communities have
generation capability (base load,
peakers, back up, renewable).
Public Power Business
Model
 Public Power Utilities in
Wisconsin are owned by the
municipal corporation and
governed by either a
“commission” or a
“committee”.
 Retail services regulated by
the Public Service
Commission of Wisconsin.
 Wholesale transactions (i.e.,
power contracts) regulated
by the Federal Energy
Regulatory Commission.
Municipal Joint Action
Agencies
 “Municipal Electric Companies” in WI (66.0825(4), Wis.
Stats.).
 “… a public corporation created by contract between two
or more municipalities …”
 Three in WI:
 WPPI Energy
 Great Lake Utilities (GLU)
 Western Wisconsin Municipal Power Group/Upper
Midwest Municipal Power Agency (UMPA)
 Becoming the norm nationally.
Public Power around the
country
 There are more than 2,000 public power
systems in the U.S. (American Public Power
Association).
 The largest community-owned electric systems
include communities such as Seattle, Los
Angeles, Sacramento, Austin, Orlando, Long
Island, Nashville and Memphis.
 The entire state of Nebraska is considered
“Public Power”.
Benefits of Public Power for
its Wisconsin customers






Local control, local decisions.
Lower electric rates.
More reliable system.
Local employment.
Faster response time.
“Payment-in-lieu-of-tax” to the 82 Wisconsin
public power communities totaled more than
$19.2 million in 2011.
Current Challenges for
Public Power
 Stagnant economy (drop in load; more
delinquent accounts and uncollectible
accounts).
 Environmental regulations.
 Workforce issues (succession
planning; public employee retention).
 Tight municipal budgets.
Who said this?
“The legitimate object of government, is
to do for a community of people whatever
they need to have done but cannot do, at
all, or cannot so well do, for themselves –
in their separate and individual
capacities.”
____________________ - July 1, 1854
Thank you.
Questions?
For more information:
David J. Benforado, Executive Director
Municipal Electric Utilities of Wisconsin
725 Lois Drive
Sun Prairie, Wisconsin 53590
(608) 837-2263
www.meuw.org