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In Kansas,
120 cities operate a municipal electric utility. 67 cities operate
a municipal gas cities. Countless more have a city-owned public
water system. Municipally-owned utilities are the best choice for
a community and its citizens. Here are just a few of the reasons
why…
Consumer
Owned
A municipal utility is owned by the city it serves. It exists to
provide a public service to the residents and businesses of the
community. Service - rather than profit - is the mission of the
utility.
Local
Control
The rates and services of a municipal utility are governed by the
city itself, either through the city commission or an appointed
or elected board of public utilities. This is the most democratic,
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 take it to a state agency
in Topeka. The customer can discuss the problem locally, with another
member of the community, and be assured that the problem will be
addressed.
Public
Interest
A municipal utility is operated in the public interest, for the
benefit of the residents of the city - 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 always remains a tension
between the interests of the utility customers and the interests
of the corporate stockholders. Their interests are not always the
same, and often may be in conflict. This disparity of interests
has given rise to a complex system of regulation of privately-owned
utilities. This extensive level of regulation is unnecessary when
the utility is publicly owned, and operated for the benefit of the
community it serves.
Keeping
Dollars in the Community
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. Municipal utilities also 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. Importantly,
municipal utilities contribute to the economic well-being of the
city by making payments in lieu of taxes. These payments are similar
to the tax payments that would be made by a private utility. Finally,
municipal utility rates are, on average, lower than those of other
utilities. Lower rates means more dollars available to spend on
other goods and services, which boosts the local economy.
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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