PRESENTER’S NAME TITLE AMERICAN PUBLIC POWER ASSOCIATION Data from the Energy Information Administration, 2014 and Public Power Statistical Report, 2015 ABOUT PUBLIC POWER

INDEPENDENT GENERATORS 10.1% 40.3% FEDERAL POWER AGENCIES 6.6% 5.1% RURAL ELECTRIC COOPERATIVES 38.0% WHO GENERATES POWER IN AMERICA? PUBLIC POWER UTILITIES INVESTOR- OWNED UTILITIES

ELECTRICITY IN THE U.S. IS GENERATED FROM 38.6% 27.8% 19.5% 7.1 % 0.7 % COAL NUCLEAR NATURAL GAS HYDROPOWER RENEWABLES (NON-HYDRO) & OTHER OIL 6.2%

ELECTRICITY USED BY PUBLIC POWER IS GENERATED FROM 28% 39.5% 7.6% 2.2% 5.4% COAL NUCLEAR NATURAL GAS HYDROPOWER RENEWABLES (NON-HYDRO) & OTHER OIL 17.3%

2,012 PUBLIC POWER UTILITIES PROVIDE ELECTRICITY TO 48 MILLION PEOPLE* IN 49 STATES AND 4 U.S. TERRITORIES 1 IN 7 ELECTRICITY CUSTOMERS IN THE U.S. ARE SERVED BY PUBLIC POWER *Based on U.S. Census Bureau stats of 2.54 people per household/meter

Only answer to customers No profit motives PUBLIC POWER IS AFFORDABLE What residential customers pay if they are served by: CENTS PER KILOWATT HOUR Transparent rate setting process Help customers use less energy and save on bills PUBLIC POWER UTILITIES RURAL ELECTRIC COOPERATIVES INVESTOR-OWNED UTILITIES CENTS PER KILOWATT HOUR

Public power’s share of the U.S. electricity market 10% of generation PUBLIC POWER REACH 10% of transmission 16% of distribution

IN ALL STATES & TERRITORIES EXCEPT HAWAII

HOW MANY CUSTOMERS DOES A PUBLIC POWER UTILITY HAVE? 1,360 PUBLIC POWER UTILITIES HAVE UNDER 4K CUSTOMERS 328 PUBLIC POWER UTILITIES HAVE 4-10K CUSTOMERS 159 PUBLIC POWER UTILITIES HAVE 10-40K CUSTOMERS 44 PUBLIC POWER UTILITIES HAVE K CUSTOMERS 30 PUBLIC POWER UTILITIES HAVE 100K+ CUSTOMERS

HOW MANY CUSTOMERS DOES A PUBLIC POWER UTILITY HAVE?

Is owned by the community Is usually a division of local government Is transparent (subject to sunshine laws) Involves citizens in decision- making WHAT IS PUBLIC POWER? Brings electricity to homes and businesses May generate and/or buy power Is a not-for-profit entity A PUBLIC POWER UTILITY

FEDERAL POWER SUPPLIERS: GENERATION Federally-owned Hydro, nuclear, and other sources Serving public power and rural electric cooperatives TENNESSEE VALLEY AUTHORITY Generate and sell electricity

POWER MARKETING ADMINISTRATIONS Federally-owned Market and transmit electricity Hydro and other sources Prioritize supply to public power  Western Area Power Administration  Bonneville Power Administration FEDERAL POWER SUPPLIERS: TRANSMISSION  Southeastern Power Administration  Southwestern Power Administration

THREE TYPES OF ELECTRIC UTILITIES Not for profit, community- owned Only for interstate transmission Very limited instances Elected/appointed boards – mayors, city council members, citizens BUSINESS MODEL FERC JURISDICTION REGULATED BY STATE PUBLIC UTILITY COMMISSION GOVERNED BY Not for profit, member- owned Only for interstate transmission Some Member-elected boards For profit, shareholder- owned For wholesale rates All Private boards RURAL ELECTRIC COOPERATIVES PUBLIC POWER UTILITIES INVESTOR-OWNED UTILITIES

# OF ELECTRIC UTILITIES IN AMERICA 26% 7% 6% 0.3% RURAL ELECTRIC COOPERATIVES POWER MARKETERS INVESTOR OWNED UTILITIES PUBLIC POWER UTILITIES 61% FEDERAL POWER AGENCIES

UTILITIES CAN RAISE FUNDS THROUGH Stock issue or corporate debt Loans from the U.S. Department of Agriculture’s Rural Utilities Service, or cooperative and private lenders Tax-exempt municipal bonds RURAL ELECTRIC COOPERATIVES PUBLIC POWER UTILITIES INVESTOR-OWNED UTILITIES

ELECTRICITY CUSTOMERS SERVED BY 68% 15% 13% 4% MOSTLY IN TEXAS PUBLIC POWER UTILITIES RURAL ELECTRIC COOPERATIVES INVESTOR- OWNED UTILITIES POWER MARKETERS

PUBLIC POWER UTILITIES ARE LIKE OUR PUBLIC SCHOOLS AND LIBRARIES Elected or appointed boards—mayors, council members, citizens Division of local government Community-owned

LOCAL CONTROL LOW RATESHIGH RELIABILITY PUBLIC POWER = ++

National average retail rates: cents per kilowatt hour PUBLIC POWER COSTS LESS RESIDENTIAL BUSINESSOVERALL 11.4 PUBLIC POWER UTILITIES 11.6 RURAL ELECTRIC COOPERATIVES 13.1 INVESTOR- OWNED UTILITIES 8.91 PUBLIC POWER UTILITIES 9.52 INVESTOR- OWNED UTILITIES 10.4 RURAL ELECTRIC COOPERATIVES 10.8 INVESTOR- OWNED UTILITIES 9.3 RURAL ELECTRIC COOPERATIVES 10.1 PUBLIC POWER UTILITIES

Public power utilities employ 93,000 people and earn $58 BILLION in revenue annually ECONOMIC DEVELOPMENT POWERFUL ECONOMIC ENGINES NEW BUSINESS TO THE COMMUNITY BUY LOCAL

PUBLIC POWER UTILITIES GIVE BACK 5.6% OF ELECTRIC OPERATING REVENUES TO THEIR COMMUNITIES

PUBLIC POWER GIVES BACK 5.5% of electric operating revenues to state and local governments Property-like taxes, payments in lieu of taxes, general fund transfers, free and reduced cost electric services

AMERICAN PUBLIC POWER ASSOCIATION POLICY ADVOCACY Trade association representing public power utilities across the U.S. MEMBER EDUCATION AND INFORMATION BEST PRACTICES AND RESOURCES

Leave decision-making to local and state authorities Make policies fair to all customers — solar and non-solar Keep participation in net metering voluntary for public power SOLAR

CLEAN POWER PLAN ! Too much too fast for many states ! Premature closure of coal plants with emission control could result in stranded assets and drive up costs

! Mandatory capacity markets don’t work ! NO new mandatory capacity markets without unanimous approval of states in the region ! Performance requirements don’t make sense ! Protect public power’s right to SELF SUPPLY CAPACITY MARKETS

J.D. Power 2016 Business Customer Satisfaction Survey 4 out of top 8 utilities are public power Midwest midsize: Omaha Public Power District Nebraska South midsize: JEA, Jacksonville, Florida West large: Salt River Project, Arizona West midsize: Sacramento Municipal Utility District, California BEST IN CUSTOMER SERVICE

JOINT ACTION AGENCIES BUY POWER & PROVIDE SERVICES FOR A GROUP OF UTILITIES ECONOMIES OF SCALE STRENGTH IN NUMBERS

PUBLIC POWER SOURCES Where Public Power Utilities Get The Power They Distribute 2/3: Generation owned by public power utilities and joint action agencies 1/3: Generation bought from investor- owned and co-op utilities and federal power agencies

Residential ELECTRICITY CUSTOMERS Business Industrial

HOW ELECTRICITY FLOWS