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

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Presentation on theme: "ABOUT PUBLIC POWER PRESENTER’S NAME TITLE AMERICAN PUBLIC POWER ASSOCIATION Data from the Energy Information Administration, 2014 and Public."— Presentation transcript:

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

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

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

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

5 1 IN 7 ELECTRICITY CUSTOMERS IN THE U.S. ARE SERVED BY PUBLIC POWER
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

6 PUBLIC POWER IS AFFORDABLE
What residential customers pay if they are served by: RURAL ELECTRIC COOPERATIVES PUBLIC POWER UTILITIES INVESTOR-OWNED UTILITIES 11.6 11.4 13.1 CENTS PER KILOWATT HOUR CENTS PER KILOWATT HOUR CENTS PER KILOWATT HOUR Only answer to customers No profit motives Transparent rate setting process Help customers use less energy and save on bills

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

8 IN ALL STATES & TERRITORIES EXCEPT HAWAII

9 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 HOW MANY CUSTOMERS DOES A PUBLIC POWER UTILITY HAVE? 159 PUBLIC POWER UTILITIES HAVE 10-40K CUSTOMERS 44 PUBLIC POWER UTILITIES HAVE 40-100K CUSTOMERS 30 PUBLIC POWER UTILITIES HAVE 100K+ CUSTOMERS

10 HOW MANY CUSTOMERS DOES A PUBLIC POWER UTILITY HAVE?

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

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

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

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

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

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

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

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

19 PUBLIC POWER = + + LOCAL CONTROL LOW RATES HIGH RELIABILITY

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

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

22 PUBLIC POWER UTILITIES GIVE BACK 5
PUBLIC POWER UTILITIES GIVE BACK % OF ELECTRIC OPERATING REVENUES TO THEIR COMMUNITIES

23 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

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

25 SOLAR 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

26 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

27 CAPACITY MARKETS 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

28 BEST IN CUSTOMER SERVICE
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

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

30 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

31 ELECTRICITY CUSTOMERS
Residential Business Industrial

32 HOW ELECTRICITY FLOWS

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