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Small town revitalization series – Part 1: Economic Development

June 29, 2021

by Paul Ciampoli
APPA News Director
June 29, 2021

Part 1: Economic Development 

The American Public Power Association (APPA) is pleased to introduce the first in-depth, three-part Public Power Current newsletter series this week, on small town revitalization. Thank you to all the small utility systems across America who were eager to share their stories towards promoting economic development initiatives (Part 1), employee recruitment and retention efforts (Part 2), and beautification plans (Part 3).  

Of America’s nearly 2,000 public power utilities, a vast majority of them are considered “small.”  

Colin Hansen, Chair of APPA’s Board of Directors and Executive Director of the Kansas Municipal Utilities (KMU), is proud to represent the 116 (out of 118) KMU members that serve small towns. Indeed, since most public power systems do, it would be fair to say that when small cities and towns thrive, so does public power. He said, “Our large systems – from Seattle City Light and LADWP to Santee Cooper and JEA – are often looked to for the amazing work being done to uplift public power communities.  I want to thank them for being innovative industry leaders. I also want to shine a bright spotlight on the truly incredible things our small public power systems are doing in the hope that we can all learn from each other. There are many small systems across the country that demonstrate the progressive thinking and a kind of grit – hidden only by their size – that truly defines all public power systems: unique, visionary, dedicated, and resilient. These are just some of their success stories.”   

Part 1 of our series provides an overview of the types of projects and programs small utility systems have undertaken to promote economic development – or redevelopment – in their communities. From fiber deployment to free electric vehicle charging stations in downtown areas to business incentive programs and active marketing of what their small towns, and public power, can offer.

Kentucky
In the Bluegrass State, Barbourville, Ky.’s economic development activities include “Blink,” Barbourville’s Gigabit Link. Blink delivers 50 Mbps, 100 Mbps and even 1 Gigabit speeds and can handle up to 5 simultaneous HD signals into the home. Businesses will have a speed and data capacity advantage few rural communities offer today, the utility notes. Barbourville Utilities is a member of the Kentucky Municipal Energy Agency (KYMEA), a joint public agency formed in 2015 to assist with collaboration amongst 11 members utilities.

In Frankfort, Ky., the city’s utility has been providing rebates to customers during the COVID-19 pandemic and is continuing to do so this year, noted Michelle Hixon, Director of Administrative Services and Communications at KYMEA. The Frankfort Plant Board (FPB) is KYMEA’s largest member.
 
Meanwhile, FPB partnered with the city to deploy electric vehicle charging stations. FPB “invested in their community by providing several charging stations near the downtown area,” KYMEA notes in its 2020 annual report.

“Not only do these locations allow for the community to charge their vehicle as they visit downtown for business, shopping, eating, or visiting the park; the charging stations are provided free of charge from the City of Frankfort. Parking and charging for an hour or two can provide as much as 50 miles of range which is more than enough for everyday driving needs. It’s a fantastic way to draw tourism and economic growth to Frankfort’s charming downtown atmosphere,” KYMEA reported.

Cathy Lindsey, Director of Marketing and Communications at FPB, said that for more than 77 years, FPB “has powered the Franklin County community with the most valuable resources essential to enrich the quality of life – electricity, water, cable, internet and more. As neighbors serving neighbors, FPB strives to provide these services in a way that fosters the community to thrive and grow. After all, the community members are our customer-owners,” she said.

The priority is to ensure low and stable rates, she noted, which is why in 2019, FPB switched its power supplier from Kentucky Utilities to KYMEA. 

“The savings began immediately. Since that time, we have had no electric or water rate increases with none planned in the near future. Our decrease in wholesale power has enabled FPB to issue annual rebates to customers. This means FPB has returned $3.2 million to customers since 2019 and plans another rebate this year of $1.6 million. These are huge incentives to recruit new business and industry to our community,” she said.

“While we have long offered fiber connections to businesses and schools, FPB has invested in an extended fiber-to-the-premise infrastructure that will improve broadband services for both business and residential customers. We are partnering with the local government to promote the new service and the city’s new remote worker incentive program. This next-generation system is another boon that will attract growth in our community,” Lindsey said.

“We take our role as a public utility very seriously. That’s why in addition to major projects, we focus on programs that will improve life for our customers. This includes water fountains in parks, free wi-fi zones, EV charging stations and college scholarships. Our customers deserve these benefits of a locally-owned municipal utility,” she said.

Elsewhere in the Commonwealth, in the early 2000’s, Paducah, Ky., updated its connectivity between substations with a fiber optic network which is used as a fiber backbone for local internet providers. “We directly serve our hospitals and schools, allowing them better connectivity between medical facilities and making it easier for the schools to download curriculum,” noted Andrea Underwood, Director of Human Resources and Community Relations, at the Paducah Power System.

“For the past three years, we’ve provided free wi-fi to the community’s new Sprocket Innovation Hub, an incubator for creating new businesses and jobs in the community. We recently announced we will continue to do that for the upcoming expansion of Sprocket. Last year, we also worked with our public housing authority to make sure their housing sites had wi-fi service that allowed youth residents to do their virtual learning during the pandemic,” she said.

Nebraska
In 2020, the Nebraska Department of Economic Development (DED) announced the City of Kimball (population 2,360) as a new member of Nebraska’s Leadership Certified Community (LCC) program. 

Kimball became one of 29 Nebraska communities to qualify for DED’s LCC program, created in 2011 to help villages and municipalities adapt to ongoing changes and opportunities in economic development. Certified communities must demonstrate an understanding for and preparedness in strategic planning, and display readiness in technological development to help new and existing businesses grow. Qualifying LCC’s earn status in the program for five years and are required to maintain community websites to market local development, which may include information on available sites and buildings and regional employment opportunities. This is the City of Kimball’s first certification in Nebraska’s LCC program.

“Over the past year, the city has invested nearly $1 million in its business incentive programs,” an August 2020 news release noted.  

Kimball’s Local Option Municipal Development Act (LB840) loan program authorizes incorporated cities and villages to collect and appropriate local tax dollars for economic development. The funds assisted in the redevelopment and renovation of a premier full-service RV park, High Point RV Park, which includes showers, a store, and 15 full RV hookups. High Point RV Park has plans for expanding their business plan and RV spaces. 

Other businesses within the city who have utilized loan assistance include: The Sagebrush LLC, which includes a restaurant, lounge, and 400-person event area and Karen’s Kitchen, a family restaurant which offers home cooked meals from the menu and daily specials.

Another LB840 incentive is the City of Kimball’s Infrastructure Improvement Grant Program, which provides up to $15,000 in assistance for local business owners who invest in ADA compliancy, energy efficiency, electrical or plumbing updates, or building code improvements. 

Georgia
Public power communities in Georgia are also involved in a wide range of economic development activities.

For example, Thomasville, Ga., has invested in two electric vehicle charging stations for public use, which are available free of charge. Their hope is that this encourages people who may be close to Thomasville to consider detouring for a charge and to spend some time downtown. “They have been very well received,” said Sheryl Sealy, Executive Director, City of Thomasville, Marketing & Customer Services. “It is our way of bringing visitors to our downtown to experience all we have to offer.” 

ev station
EV charging station in Thomasville, GA

The City of Thomasville has had initiatives throughout COVID to help the community avoid homelessness and other situations that may result from a loss of income.  “We concentrated efforts on our Project Share, which allows customers to add a contribution to their utility bill to help their neighbors,” Sealy said. “We also partnered with a local non-profit to administer a relief program that is funded by money the city received through the CARES Act.”

Elsewhere, the City of Forsyth, Ga., has seen a lot of growth in the last couple of years.  

CITY HALL
City Hall in Forsyth, GA

For example, Forsyth Main Street and the Downtown Development Authority are working to promote, revitalize, and beautify the Central Business District to make Forsyth the thriving hub of the community. Through these efforts, there will be an encouragement of retail and professional business growth.

Forsyth Main Street awarded 12 Façade/Sign Grants in the amount of $16,212 in 2020. Within the downtown area, several new businesses opened in 2020 and the City of Forsyth had over 30 new business license applications in 2020, noted Tammie Pierson, Economic Development Director for Forsyth.

scoops
Scoops in Forsyth, GA

Tennessee
Mark Kimbell, General Manager at the Gallatin Department of Electricity (GDE) in Tennessee, noted that GDE has invested in its system to help attract new customers. “We have also deployed fiber around town to provide backhaul for new customers and improve connectivity.”

With respect to fiber, he said while they do not intend to offer fiber to homes, “We intend to use dark fiber as an economic development tool to recruit new customers, and to work with the city and county as their needs go.” 

GDE recently finished a fiber loop project for its own resources (SCADA to substations). “We have a hardened substation house several miles from our office that we use as a backup, for our redundant systems.”

Harriman Utility Board (HUB) in Harriman, Tenn., detailed its economic development accomplishments in its 2018 annual report. “Researchers and Site Selection Groups seem to agree that the Southeastern United States is the most competitive region of the country for business investment. One vastly underrated reason why is the availability of well-organized and well-funded power companies,” the report notes. 

HUB Building
Harriman Utility Board in Tennessee

Tennessee has been increasingly successful in receiving new and expanded business/industry investment in recent years, the report said. The Tennessee Valley Authority “is just one reason why we have a competitive advantage. By partnering with our local and State economic development agencies and the TVA, we will encourage growth and development in our service area and that which surrounds it. From an availability and reliability of utilities perspective, we will identify and tackle issues which may be deterring business from our area. In addition, we will invest in social improvement. We will grow our presence at public events, schools, and civic groups. We will educate our customers and key stakeholders on the value of public utilities and focus on safety and reliability of our services.”

Meanwhile, HUB recently completed moving HUB’s main headquarters to an old bank building.  “It’s actually getting more common to see local utilities take over former bank buildings, as the banks are looking to downsize, and the utilities are looking for similar building layouts to serve their customers. Several nearby utilities are going through similar building projects right now. Some are like us, lucky to have a low cost, existing building to renovate.  Others are forced to build new. But most all of us want to stay located in the heart of our communities,” said Candace Vannasdale, HUB General Manager, who oversaw the project. 

North Carolina
North Carolina has seen another record-setting year in the economic development space with public power communities at the heart of the activity, noted Brenda Daniels, Manager of Economic and Community Development at ElectriCities of N.C.

In May 2021, White River Marine Group, LLC, a manufacturer of recreational boats, opened a manufacturing facility in Craven County, with a target of 500 jobs. The company anticipates a $34 million investment in New Bern, a public power community.

Also announced this May, JELD-WEN Holding, Inc., a manufacturer of windows and doors, will create 235 jobs in Iredell County, N.C. The company will invest $7.9 million in Statesville, a public power community, to establish a new production facility for VPI Quality Windows.

Meanwhile, several ElectriCities members are now offering co-working spaces including the North Carolina Public Power communities of Apex, Louisburg, Morganton, and Wake Forest. These projects have proven wildly successful, with many of the new spaces already at capacity, said Daniels.

Daniels and her team of economic development experts support ElectriCities members by providing a number of services to public power communities including feasibility studies, strategic economic development plans, Smart Site certifications, grant programs, and more.  

ElectriCities was also named “Top Utility” in the U.S. by Business Facilities Magazine and North Carolina is also Business Facilities’ 2020 State of the Year, which Daniels said are “two huge accomplishments that would not be made possible without the hard work of our member communities across the state.” 

Alabama
Elsewhere in the Southeast, Sheffield, Ala., is implementing a Community Centered Growth Pilot Program in its downtown area, noted Steve Hargrove, General Manager of Sheffield Utilities.

He said community centered growth targets community-based small businesses in economically distressed areas. A pilot program offered by Sheffield Utilities and the Tennessee Valley Authority is designed to attract sustainable businesses and stimulate “existing small businesses in our community through energy efficiency investments and resources,” he said. 

He listed pilot focus areas as follows:

Technologies and incentive opportunities include:

The pilot program began in January 2021 by recruiting participants based on building features and location.  In March, assessment of selected buildings began to determine priority of technologies and extent of revitalization projects.  In April, vendors were chosen to complete upgrades.  From May through September, the city will begin installing upgrades, capture lessons learned and best practices to inform future programs.

Wisconsin
In the Upper Midwest, River Falls Municipal Electric Utility “firmly believes in supporting economic development for several reasons,” said Kevin Westhuis, Utility Director, City of River Falls Municipal Utilities.

“One, as our commercial and large customer base grows, it is a net positive for our residential customers as increased revenues can have a stabilizing effect on rates. Two, as a Municipal Utility, we not only have a direct interest in the economic health of our community, but can actually effect it positively with deliberate action,” he said. “Jobs and opportunities are key factors in a vibrant town or city; we recognize it and support it. Thirdly, and one of the reasons “Municipal Utility” is such an advantage is: we can reflect our local community’s values. Health (both physical and economic), safety, and environmental stewardship are three of many values that we actively support as River Falls Municipal Electric Utility.”

Illinois
In Illinois, the City of Rock Falls has also been active on the economic development front.

Robbin Blackert, City Administrator, City of Rock Falls, highlighted the city’s fiber to the home project. “When COVID hit, we became the golden child because our schools could handle the virtual learning demands – and so could all the work-from-home employees. We ended up selling our backbone infrastructure to a private company, who will have the town 80% done by year-end.” The city still benefits through franchise fees.

Blackert also noted that the city previously took involuntary possession of the Reliant Fastener property, an abandoned manufacturing plant for industrial and automobile fasteners, which made it eligible for federal EPA clean-up funding.  Demolition of 30 structures and road construction began in 2011. The location is adjacent to the busiest intersection in Whiteside County, Ill. The road project had a huge economic impact to the city, with 40 permanent jobs, $150,000 in property taxes, $120,000 annually in hotel/motel tax, and $80,000 annually in electric, sewer & water fees. The city expects 120 additional permanent jobs and $200,000 additional in utility fees. The brownsfield redevelopment includes a new community park complete with an amphitheater and hotel.

before
Before Brownfield site redevelopment
after
After Brownfield site redevelopment

Utah
Looking at a different part of the country, Monroe City, Utah, has completed a number of economic development projects, noted Monroe City Council Member Erica Sirrine.

The city added a road access to the city’s Hot Springs for citizens to have easier access; grated Canyon View Landing Park and hauled in road base for a parking area for paragliders; installed sprinkler system and hydroseeding to the Canyon View Landing Park for a grass runway for paragliders; and is currently installing a restroom at the Canyon View Landing Park

Monroe City is a member of Utah Associated Municipal Power Systems (UAMPS).

Tomorrow, Part 2 of our series continues with efforts small towns are undertaking to attract and keep hometown talent at home – and the significant roles public power utilities play in achieving that goal. 

Colin Hansen installed as chair of the APPA Board of Directors

June 23, 2021

by APPA News
June 23, 2021

Colin Hansen, executive director of Kansas Municipal Utilities (KMU) in McPherson, Kansas, was installed as chair of the American Public Power Association Board of Directors during APPA’s National Conference in Orlando, Florida, on June 23.

Anthony Cannon, general manager and CEO of Greenville Utilities Commission in Greenville, North Carolina, is chair-elect for 2021-2022. David Osburn, general manager of Oklahoma Municipal Power Authority in Edmond, Oklahoma, is vice chair. Jolene Thompson, president and CEO of American Municipal Power, Inc. in Columbus, Ohio, is immediate past chair. Layne Burningham, president and CEO of Utah Municipal Power Agency in Spanish Fork, Utah, is treasurer.  

Hansen says one of his key goals is to tell the stories of small public power systems

“One of the things that makes my job so interesting, but also very challenging, is that the defining characteristic of my membership is the small size,” Hansen said in remarks made at the national conference. “I serve 118 public power systems in Kansas and the median size of those 118 public power systems is a utility that serves 932 customers. In fact, only eight of our members serve more than 5,000 customers,” he said.

“If you look more broadly across the United States at the 2,000 public power systems, 82 percent of those serve fewer than 10,000 customers and almost half serve fewer than 2,000 meters,” Hansen noted.

“So given the unique nature of my organization and the Kansas public power community, one of the primary goals in my year as board chair is to tell the stories of the small public power systems, learn the stories of the small public power systems and shine a light on the innovative, professional, resilient and reliable small systems run by incredibly dedicated and energetic public power professionals all across the country,” Hansen said.

“This is not to say that we won’t continue to uplift the absolutely amazing work being done by our large public power systems,” he went on to say. “From SMUD and GRDA to Austin Energy, SRP, LADWP and so many others” including KMU’s largest member, the Kansas City Board of Public Utilities. “Thank you for being public power leaders.”

Hansen said that like large public power systems, smaller public power systems are “doing some really incredible things to.”

By way of example, Hansen noted that the City of Lindsborg, Kansas, a town of 3,500 people, has an “innovative and progressive small public power system. The city leads the way for other Kansas public power systems on adoption of electric vehicles, with the city even purchasing its own Tesla and charging stations to encourage greater tourism in Kansas and load growth for the utility.”

Sioux City, Iowa, which serves 2,700 electric customers, “has been defined by quietly demonstrating bold planning and visionary thinking for well over half a century. All the way back in the 1950s, the city began purchasing hydropower from dams on the Missouri River and even had some years where a hundred percent of the city’s power was provided via hydropower,” Hansen said. In the 1960s, the city moved to convert the electric distribution system to underground lines to improve the utility’s reliability and the city’s aesthetics, he noted.

Another example is the City of Norway, Mich., Hansen said. “Norway is a city of fewer than 3,000 people in Northern Michigan, where they operate their own Sturgeon Falls hydro electric plant and can provide up to 95 percent of their electricity using renewable and carbon free resources,” Hansen said.

“In many small public power systems all across the country, the city took on providing these services because they would have had to do without otherwise,” he noted. “Norway, for example, was one of the first communities in the nation to build its own cable TV system.”

Meanwhile, streetlights were switched on with electricity for the first time in May 1920 “and they have been lighting downtown Jackson Center, Ohio, ever since. Today, Jackson Center has a population of nearly 1,500 and even though their located in a rural area, approximately 1,700 people commute daily to work in the village.” Hansen noted that “the city boasts a great deal of industry including Airstream, the American iconic aluminum travel trailers. Airstream began manufacturing their trailers in Jackson Center in 1952. Today, the company employs more than 1,000 people and turns out over a hundred trailers a week.”

While Kansas-based McPherson Board of Public Utilities only serves just over 8,000 customers in Central Kansas, it has 235 megawatts of generating capacity, Hansen said. He noted that 77 percent of its electric sales are to industrial customers. “With industrial rates 26 percent lower than the national average – not to mention the reliability ratings of 99.99 percent through a fully redundant electric system – the utility has spurred incredible economic development in Central Kansas, serving a vibrant and diverse industrial base that includes plastics, fiberglass insulation and pharmaceuticals.”

Hansen also provided examples of how small public power systems have proven their resilience and grit, as well as noting that both large and small public power systems are “about visionary and urgent leadership and living with urgency.”

In a recent episode of APPA’s Public Power Now podcast, Hansen and Thompson discussed the transition from Thompson as chair of APPA’s Board of Directors to Hansen. Thompson reviewed her accomplishments as board chair, while Hansen detailed what his priorities will be as board chair.

Board members

Hansen chose five members of the board to serve with the officers on the APPA Executive Committee.

They are: John Haarlow, CEO and general manager of Snohomish County PUD in Everett, Washington; Nicholas Lawler, general manager of Littleton Electric Light and Water Departments in Littleton, Massachusetts; Russell Olson, CEO of Heartland Consumers Power District in Madison, South Dakota; Michael Peters, president and CEO of WPPI Energy in Sun Prairie, Wisconsin; and Kimberly Schlichting, chief operating officer and senior vice president of power supply of Delaware Municipal Electric Corporation, Inc. in Smyrna, Delaware.  

Newly elected to the APPA board this year are: Tony Pochard, electric utility director of Anderson Municipal Light and Power in Anderson, Indiana; Paul Mahlberg, general manager of Kansas Municipal Energy Agency in Overland Park, Kansas; David Geschwind, executive director and CEO of Southern Minnesota Municipal Power Agency in Rochester, Minnesota; James Fuller, president and CEO of MEAG Power in Atlanta, Georgia; Paul Lau, CEO and general manager of SMUD in Sacramento, California; Jonathan Hand, executive director of Electric Cities of Alabama in Montgomery, Alabama; and David Carroll, general manager of Paducah Power System in Paducah, Kentucky. 

Five board members were re-elected to new three-year terms: Laurie Mangum, energy services director of City of St. George in St. George, Utah; Edward Krieger, power system director of Piqua Power System in Piqua, Ohio; Darrel Wenzel, CEO and general manager of Waverly Utilities in Waverly, Iowa; David Osburn, general manager of Oklahoma Municipal Power Authority in Edmond, Oklahoma; and Daniel Beans, electric utility director of Redding Electric Utility in Redding, California. 

APPA board members are chosen to represent 10 regions across the country.

Twenty-two individuals, eleven utilities earn national public power awards

June 22, 2021

by Paul Ciampoli
APPA News Director
June 22, 2021

Twenty-Two individuals and eleven utilities on June 22 were recognized for service to the American Public Power Association and the public power industry during APPA’s National Conference in Orlando, Florida. 

The individuals and utilities recognized at the ceremony were: 

Alex Radin Distinguished Service Award

This award is the highest award granted by the American Public Power Association. The award recognizes exceptional leadership and dedication to public power.

James D. Donovan Individual Achievement Award

This award recognizes people who have made substantial contributions to the electric utility industry, with a special commitment to public power. 

Larry Hobart Seven Hats Award

This award recognizes managers of small utilities serving fewer than 2,500 meters. These managers have a very small staff and must assume multiple roles.

Harold Kramer-John Preston Personal Service Award 

This award recognizes individuals for their service to the American Public Power Association.

Spence Vanderlinden Public Official Award

This award recognizes elected or appointed local officials who have contributed to the goals of the American Public Power Association.

Robert E. Roundtree Rising Star Award

This award is a scholarship presented to future leaders in public power. The recipient receives a stipend to travel to an Association conference or training program to advance their education and development in public power.

Mark Crisson Leadership and Managerial Excellence Award 

This award recognizes managers at a utility, joint action agency, or state or regional association who steer their organizations to new levels of excellence, lead by example, and inspire staff to do better.

E.F. Scattergood System Achievement Award

This award honors American Public Power Association member systems with outstanding accomplishments.

Sue Kelly Community Service Award

This award recognizes utilities for their “good neighbor” activities that demonstrate commitment to the local community.

Energy Innovator Award

The Association’s research program, Demonstration of Energy & Efficiency Developments (DEED), nurtures innovation in public power. Each year, the program recognizes innovative utility projects with this award.

San Diego city council members unveil plan that includes municipalization study

June 21, 2021

by Peter Maloney
APPA News
June 21, 2021

San Diego city council members Sean Elo-Rivera, Joe LaCava, and Monica Montgomery Steppe recently said that work has begun on an energy independence plan for the city that includes conducting a public power feasibility study.

A public power feasibility study would provide an analysis of the viability of municipalization for San Diego. The study would include an analysis of the costs, benefits, and process of creating an alternative to an investor-owned utility.

The scope of the study would include estimates of:

Additional items identified through a community engagement process could be included for analysis in the study.

The announcement of the energy independence plan came on the heels of a May 25 vote in which the city council approved a new franchise agreement between the city and SDG&E that could run for as long as 20 years. The agreement was ratified 6 to 3, just meeting the two-thirds super majority required for passage.

Council members LaCava and Montgomery Steppe voted against the measure. Council member Elo-Rivera voted in favor of it.

“On Tuesday, I voted in support of the Mayor’s proposed Franchise Agreement and committed to the community that I would take immediate action to ensure San Diego is better positioned the next time we determine our energy future,” Elo-Rivera said in a statement. “I’m proud to stand with two colleagues who fought hard for the best franchise deal possible as we look toward the future and begin the process of building a path toward energy independence.”

Another element of the energy independence plan calls for the creation of an energy independence fund. The three council members said they would work with Mayor Todd Gloria and the city’s Environment Committee to create an Energy Independence Fund that would allocate a minimum of $1.2 million of SDG&E’s franchise bid payments over the next five years.

The $1.2 million is the difference between the amount SDG&E will pay annually to the city over the first five years of the agreements, a total of $10 million, and the projected franchise revenue, $8.8 million, from the city’s proposed fiscal year 2022 budget.

The funds would create a pool of money for strategic investments, such as a refund payment to exit the agreement with SDG&E. The funds would create opportunities for alternatives that would make potential “off-ramps” from IOU electric service viable, the three council members said.

The franchise agreement runs for 10 years with an automatic renewable for another 10 years. But the agreement also gives the city the option to void the automatic renewal if that option is supported by a two-thirds of the city council. The extension can also be voided if the city decides to create a public power utility.

The new franchise agreement also includes accountability and transparency measures and the formation of a Compliance Review Committee to review audit findings, assess compliance with agreement terms, and provide input to the mayor and city council.

In an April 2020 consultant’s report, NewGen Strategies and Solutions estimated the capital costs of severing electric and gas systems in San Diego from SDG&E could run from $219 million on the low end to as much as $2.45 billion.

The report also found that electric power customers would fare better under public ownership, compared with SDG&E ownership, under low- and base-case scenarios but would save money under the high-cost scenario.

Natural gas customers would enjoy “significantly lower rates” than SDG&E under all cost scenarios, if the city paid a purchase price that reflected the cost to replace and improve SDG&E’s assets less depreciation.

Work underway to develop a NAESB base contract for voluntary renewable energy certificates

June 21, 2021

by Paul Ciampoli
APPA News Director
June 21, 2021

Whether it is successfully responding to the COVID-19 pandemic and natural disasters or building a more united and comprehensive response to the evolving threat of cyberattacks, connectivity has provided the public power community with the ability to successfully respond to these challenges, said Joy Ditto, President and CEO of the American Public Power Association (APPA), at APPA’s National Conference in Orlando, Fla., on June 21.

Public power’s connectivity “is important because we are a community,” Ditto said. “That is an important part of who we are. I say that not just to tout the importance of APPA, although of course your membership and participation are crucial, but because it defines who we are as part of the broader electric sector.” 

For over 80 years, the entire public power community “has not only shared information and insights into best practices but have grappled with difficult federal policy issues. Issues such as transmission rates, regional transmission organizations and wholesale electricity markets, comparable tax incentives, environmental regulation, cyber security, and climate change policy, to name several.”

On the issue of climate change, “in early 2020 you all coalesced around a broad position that Congress should act on climate change in federal legislation. You’ve made it clear that that legislation should ensure that the affordability and reliability of electricity must be weighed equally with greenhouse gas emissions reductions – this is a three-legged stool.“

Ditto noted that she often remarks that public power utilities “are representatives of the variety of perspectives embodied in our great country – and if your blue, red and purple communities in large cities and very small towns can come together around difficult policy positions like this one, then anything is possible. It gives me hope.”

In addition to working through a myriad of COVID-19 related challenges this year public power’s connectivity “helped us through many natural disasters. The public power mutual aid network has been an enduring testament to our connection – one that some surmised might suffer in the pandemic.”

Joy Ditto speaking at Nat Con
APPA President and CEO Joy Ditto speaks
at first day of APPA National Conference on June 21

In addition, public power’s connectivity “helps us to have a more united and comprehensive response to another evolving threat: cyber-attacks. From threats garnering national headlines such as the SolarWinds compromise and the Colonial Pipeline ransomware attacks – our communities are seeing how critical infrastructure is threatened by cyber criminals and nation-state adversaries thousands of miles away,” Ditto said.

“As far as we know, a cyber-attack has not yet resulted in a power outage in the U.S. to date, but we do know that public power utilities are not immune to such attacks, and we are dedicated to helping you mitigate your risk.”

“By curating the most critical information, finding ways to tailor industry information for public power, and connecting regularly as a community – our connectivity helps to protect us,” Ditto said.

 A full, fair seat at the transition table

“We know that members, reflective of the country as a whole, approach climate change topics from very different angles depending on their resource mixes,” she said.

A CEO-led task force has created multiple working groups to determine if there are areas of consensus on federal climate legislation, such as a clean energy standard.

“It’s clear from the conversations thus far that most agree that a net-zero carbon emissions goal by 2035 is unachievable by the majority of public power utilities and that a 2050 goal would still be difficult, but perhaps more achievable if there are breakthroughs in technology and the siting and permitting process is reformed. Infrastructure buildouts are often hampered by lengthy federal permitting processes. Given the scale at which transmission and new generation will need to be built, Congress and the Administration need to address this significant obstacle to getting to net-zero emissions.”

But these discussions “have shown that public power has significantly reduced greenhouse gas emissions and will continue to do so if given additional time, comparable tax incentives, and stranded cost recovery — and assuming major technological breakthroughs that will help with maintenance of reliability and affordability,” Ditto went on to say. 

“We each have a deep commitment to our communities – wanting to be the best providers we can be, to embody environmental stewardship, to practice safety and reliability, and to uphold the tenets of the public power model. Acting on what the community wants means being nimble. That can be hard.”

Mitigating climate change “is one of the biggest issues of our time, and we are the ones on the ground who have to tackle it head on,” she said.

“We have been approached and asked for our position by policymakers, members of the media, and more. And while we share our perspective, we know that our position and actions are both aspirational and grounded – we need to be,” Ditto said.

“We are the ones who must temper the ideals of making a transition with the practical realities of where the technology and industry capabilities are in terms of cost and reliability. And we need a full, fair seat at the transition table. That’s why one of our top advocacy priorities is comparable tax incentives. Because you can’t leave out 30% of the industry, which is us combined with rural cooperatives, and still expect to get to 100% of anything.“

APPA is encouraged by the direction of policy discussions in Washington, D.C., on this issue, which is “a testament to our ongoing lobbying efforts. We’re on the brink of gaining access to a comparable tax incentive for clean energy development in the form of a direct-pay refundable credit.”

There is bipartisan support for the Clean Energy for America Act, which includes a provision for the credits, and the act has the backing of key leadership in both the House and Senate. When passed, this type of credit will allow public power utilities to directly own applicable energy projects and pass the savings from the incentives back to customers.

Maine’s House of Representatives passes bill that would create state consumer-owned utility

June 16, 2021

by Paul Ciampoli
APPA News Director
June 16, 2021

Maine’s House of Representatives on June 15 voted 76-64 in favor of a bill that would create a consumer-owned utility in the state called Pine Tree Power. The bill now moves on to a vote in the Maine Senate.

The Maine Legislature’s Energy, Utilities, and Technology Committee on June 1 voted to advance the legislation, LD 1708. 

The consumer-owned entity that would be created under the bill would take over the electric service now provided by Central Maine Power and Versant Power. Central Maine Power Company and Versant Power (formerly known as Emera Maine), are majority owned by Iberdrola of Spain and Emera of Canada, respectively.

LD 1708 passed the committee with minor revisions suggested by state utility regulators and should go to the Senate for initial floor votes in the next week, according to a group called Our Power, which supports the creation of a consumer-owned utility in the state.

In a recent editorial Maine’s Portland Press Herald said it supports the bill. “The new utility would be governed independently, use no state funds and the taxpayers would not be on the hook for any of its debt. We don’t need to be scared about a different business model, especially when the one we have now is not working,” the editorial said.

Poll finds strong support for the creation of a consumer-owned utility in Maine

Meanwhile, newly conducted public opinion polling shows that 75% of registered voters from across the state of Maine say they support the idea of replacing Central Maine Power and Versant with a local non-profit consumer-owned utility, according to research conducted by SurveyUSA.

According to SurveyUSA, 38% strongly support the idea; 37% say they somewhat support. Just 10% are opposed to the idea, while 7% somewhat oppose and 3% strongly oppose.

The research was conducted by SurveyUSA for Our Power.

Poll finds strong support for the creation of a consumer-owned utility in Maine

May 31, 2021

by Paul Ciampoli
APPA News Director
May 31, 2021

Newly conducted public opinion polling shows that 75% of registered voters from across the state of Maine say they support the idea of replacing Central Maine Power and Versant with a local non-profit consumer-owned utility, according to research conducted by SurveyUSA.

According to SurveyUSA, 38% strongly support the idea; 37% say they somewhat support. Just 10% are opposed to the idea, while 7% somewhat oppose and 3% strongly oppose.

The research was conducted by SurveyUSA for a group call Our Power, which supports the creation of a consumer-owned utility in the state.

Support is strongest among 35-to-49-year-olds (85%). Support is higher in urban parts of Maine (81%) than in suburban (72%) or rural (62%) portions of the state. Even among those rural Maine residents with 62% support, the lowest support for the idea among any subgroup, 28% strongly support and 34% somewhat support the idea of creating a consumer-owned utility.

According to the poll, 82% of Versant customers and 74% of Central Maine Power customers say they support the idea.

“Opposition to the concept, while weak in general, does have a significant correlation with both age and with ideology,” SurveyUSA said. While just 4% of those under age 50 are opposed, 14% of those 50+ are opposed, and opposition among conservatives, at 16%, is notably higher than among moderates (6%) or liberals (5%).

SurveyUSA said that a few of the major reasons Maine residents may be so strongly supportive of the consumer-owned utility concept are:

Ursula Schryver, Vice President, Strategic Member Engagement and Education, at the American Public Power Association (APPA) recently appeared before a hearing held by Maine state lawmakers related to the bill.

She noted that there has been an increase in the number of communities exploring the public power option, a trend that has been driven by a number of factors including reliability, the desire for renewable energy options and increased economic development. Schryver, who made her comments at a May 20 hearing held by the Maine Legislature’s Energy, Utilities, and Technology Committee, also detailed the resources that APPA offers when it comes to municipalization.

The Maine committee hearing focused on a bill, LD 1708, which would create a consumer owned utility that would take over the electric service now provided by Central Maine Power and Versant Power. Central Maine Power Company and Versant Power (formerly known as Emera Maine), are majority owned by Iberdrola of Spain and Emera of Canada, respectively.

At the hearing, Schryver noted that her comments were neither for or against the legislation “primarily because APPA doesn’t weigh in on decisions made by individual communities.” APPA, she noted, serves as a resource and APPA believes that every community needs to make a decision that is right for itself.

LIPA issues request for information for utility management services

May 25, 2021

by Paul Ciampoli
APPA News Director
May 25, 2021

The Long Island Power Authority (LIPA) has issued a request for information (RFI) seeking interest from providers to perform all or select portions of utility management services currently performed by PSEG Long Island.

LIPA owns the Long Island electric grid and contracts with PSEG Long Island, a subsidiary of Public Service Enterprise Group Incorporated, to operate the grid on a day-to-day basis. “Following PSEG Long Island’s failures before, during, and after Tropical Storm Isaias in August 2020, LIPA, as directed by its Board of Trustees, is now seeking organizational and contractual changes, as well as appropriate compensation for the costs unnecessarily incurred to restore electric service to customers,” LIPA states on its website.

On April 28, 2021, LIPA released a Phase II Report of its Options Analysis. The report details the pros and cons of four management options and provides the Board and stakeholders with the facts to make an informed decision. These options include selling LIPA’s assets to private investors, resetting the PSEG Long Island relationship and reforming the contract, contracting with a new service provider to improve operations or bringing utility operations under LIPA management.

The RFI issued by LIPA on May 19 seeks interest from other providers to perform all or select portions of utility management services currently performed by PSEG Long Island in the Long Island and Rockaway service territory. The action comes as negotiations are continuing with PSEG Long Island on a reformed contract as well as an ongoing analysis to examine a fully municipal model of utility governance.

The goals of the RFI include:

The LIPA Board of Trustees is holding virtual public comment sessions to hear from customers on the alternatives to improve the future management of LIPA’s assets. The first session took place on May 25, which the second session is scheduled for May 27.

The RFI is available here.

APPA’s Schryver details rise in municipalization interest, resources offered by APPA

May 24, 2021

by Paul Ciampoli
APPA News Director
May 24, 2021

There has been an increase in the number of communities exploring the public power option, a trend that has been driven by a number of factors including reliability, the desire for renewable energy options and increased economic development, said Ursula Schryver, Vice President, Strategic Member Engagement and Education, at the American Public Power Association (APPA) during a recent hearing held by Maine state lawmakers.

Schryver, who made her comments at a May 20 hearing held by the Maine Legislature’s Energy, Utilities, and Technology Committee, also detailed the resources that APPA offers when it comes to municipalization.

The Maine committee hearing focused on a bill, LD 1708, which would create a consumer owned utility that would take over the electric service now provided by Central Maine Power and Versant Power. Central Maine Power Company and Versant Power (formerly known as Emera Maine), are majority owned by Iberdrola of Spain and Emera of Canada, respectively.

In late April, a bipartisan group of legislators in Maine announced plans to introduce the legislation. Together, the two investor-owned utilities in Maine serve 96.2 percent of the state’s residential load and have 963,187 residential customers, according to state regulators. The remaining residential load is served by public power utilities – or consumer-owned utilities, as they are known in Maine – and electric cooperatives.

“Our new bill, ‘An Act to Create the Pine Tree Power Company,’ will allow us to control our own money and our own energy destiny — to advance fast and fairly toward our own clean energy and connectivity future,” Democratic Rep. Seth Berry, sponsor of the bill and House Chair of the Energy, Utilities and Technology Committee, said in a statement last month.

At the hearing, Schryver noted that her comments were neither for or against the legislation “primarily because APPA doesn’t weigh in on decisions made by individual communities.” APPA, she noted, serves as a resource and APPA believes that every community needs to make a decision that is right for itself.

In terms of municipalization, “we believe it’s important that communities have all the information on the benefits of public power, the process, the impacts to the community, to make an informed decision for their community or their region,” she told the state lawmakers.

“We can serve as a resource from a national perspective including municipalization trends, the process, hurdles we typically see related to municipalization efforts and obviously talk about public power and successful public power examples,” Schryver said at the hearing.

“Over the last several years we have seen an increase in the number of communities exploring the public power option,” she said, noting that interest has actually been very consistent over the past several decades. “Dozens of communities contact APPA for information on public power and on the municipalization process every year,” Schryver said.

The reasons differ, she noted. “In recent years it has really been driven by the desire for renewable energy options, more environmentally friendly options or increased economic development,” she said. Rates and reliability are often common driving factors, Schryver said. “There’s often interest after a storm when the incumbent utility responds poorly,” the APPA official said.

In terms of the number of new public power utilities that have been formed, she said that 88 have formed since 1973 and 20 new public power utilities have formed in the last 20 years, Schryver told the state lawmakers. “Several of these were greenfield developments where a new utility was created in the service territory of an investor-owned utility.”

Schryver said that while there are a lot of ongoing discussions, changes in utility ownership are rare. “Often, once these discussions begin, the incumbent utility fights the effort with expensive PR campaigns, with legal battles and often they will offer concessions to encourage the community to end the initiative, which, in some cases, may be in the best interest of the community,” she said. “Once again, that’s a local decision.”

APPA offers a variety of resources related to municipalization including the Public Power for Your Community guidebook and case studies on municipalization. Additional information is available here.

Parties voice support for legislation

In written testimony for the hearing, Stephanie Clifford, Campaign Manager for Our Power, said that the Pine Tree Power Company “will be transformational for our state because it will put us in control of our energy future.

A consumer-owned utility “operates for the benefit of its ratepayers, that’s you and me. It is run locally by Maine people, with its profits being reinvested in our communities, instead of into the pockets of foreign investors and foreign governments,” she said.

The Solar Energy Association of Maine (SEAM) also voiced support for the bill.

Steve Weems, Executive Director of SEAM, said in written testimony that establishing the Pine Tree Power Company offers a superior alternative to investor-owned utilities. This is due to the structure of this proposed statewide consumer-owned utility, he said.

“First, Pine Tree Power (PTP) would be a not-for-profit corporation, controlled by an elected board of seven elected Maine directors,” which offers a number of fundamentally important positive distinctions from the investor-owned utility model, Weems said.

Among other things, he said that PTP’s municipal not-for-profit legal structure would provide PTP “with access to tax-exempt revenue bonds. Access to tax-exempt revenue bonds would reduce PTP’s cost of capital to one-half or less than the capital used by IOUs. This is why PTP would save electric ratepayers $5-10 billion dollars over the next 30 years.”

Deadline to register for APPA national conference fast approaching as spots fill up

April 28, 2021

by Paul Ciampoli
APPA News Director
April 28, 2021

The deadline to register for the American Public Power Association’s 2021 National Conference is fast approaching, with available spots filling up quickly.

This year, the National Conference will be held in Orlando, Fla., from June 20-23, followed by a virtual event on July 13-14.

Participants can choose to register for the full conference (including both the in-person event and the virtual event), or just the virtual event.

Registration for the in-person event (full access) is limited to 700 attendees to accommodate social distancing measures. Early registrations are encouraged to ensure a spot. There is no cap on virtual meeting participation.   

For the in-person conference, Admiral James Stavridis, USN (Ret.) on June 21 will share how two factors — a new emerging global security environment and the coronavirus — affect geopolitics for the U.S., China, Russia, Europe, and other areas.

Conference breakout sessions on June 21 will include current issues in federal transmission policy, what’s happening in Washington, D.C., and how small utilities navigate change.

The general session on June 21 is a CEO roundtable on resilience and response.

On June 22, breakout sessions include keeping up with climate policy in the Biden Administration, microgrids and creating value from data assets.

“APPA’s National Conference is a great way for members of the public power community to learn about the latest trends and developments in the electricity sector,” said Ursula Schryver, Vice President, Strategic Member Engagement and Education at APPA.

“Having an in-person event in Orlando also provides an excellent opportunity for public power officials at all levels of responsibility to network with their peers,” she added.

Schryver discussed the national conference in a recent APPA Public Power Now podcast.

All participants in the in-person event must agree to adhere to requirements outlined in the APPA Duty of Care Agreement.

Group discounts will be available for organizations that register five or more people, regardless of the format.

Register by May 31 to lock in savings for the in-person and virtual events. Additional details are available here.