1. A New Direction for Public Power – Part II? Glenn Steiger General Manager, Glendale Water and Power

2. Questions to Explore WHY Now? What Structure? What is the Future? How do we Proceed? WHY Now? What Structure? What is the Future? How do we Proceed?

3. What’s Driving Change? Technology Markets Economics Legislation Workforce issues Changing political and social environments Customer expectations

4. Why Change Now?

5. Federal: Legislative, Regulatory, Competitive Issues

6. Why Change Now? City and State: Political Intervention The “New” Politics!! Anti Govt. Sentiments

7. Why Change Now? Markets, Markets Markets! RECs Carbon Capacity Etc, Etc…

8. Why Change Now? Expenditures tied to municipal needs The Transfer! Is it still Legal?? T RANSFER

9. Why Change Now? Conflicting Functions Public Works… IS… Finance… Code Enforcement…

10. Why Change Now? Departmental Competition And Inappropriate allocations!

11. Why Change Now? Out of jurisdiction restrictions on ROI

12. Why Change Now? Technological revolution Smart Grid anyone?

13. What Structure?

14. What Structure? System Strategy Political Organizational Process Technological Managerial Financial Approach for long-term survival incorporates a participative Business Approach for sustainable solutions

15. Alternative Authorities? Municipal Corporation Charter-Granted, Locally Owned PUC Exemption Legislative Restructure Required Metropolitan District Broad Range of Powers Provide All Services Requires Change in Statute PUC Exemption Solely Controlled by City

16. Alternative Authorities? Special District Water, Wastewater, Electric, Gas New Legislation Service Beyond City Limits Multi-Community Entity Joint Powers, Muni. PUC Exempt Municipal Corporation Service Expansion

17. Governance and Management

18. Peer Trends Orlando Utilities Commission (OUC) Appointed Five Member Commission Set Rates and Operating Policies Pay “Franchise Fees” and “Taxes” to City City Council Involvement in Property and Easement Issues Four Year Terms Jacksonville Electric Authority (JEA) Seven Member Board of Directors Public Meetings re Rates, Service Levels, Information, Purchasing Practices, etc. City Council Liaison Four Year Terms

19. Peer Trends Denver Water Board (DWB) Board of Water Commissioners (5) Mayor-Appointed, Non City Council-Related Commission Appoints Manager who also serves as Secretary Set Rates Knoxville Utilities Board (KUB) Seven Commissioners Mayor-Appointed, City Council Approved Commission Reports Semi-Annually to City Council Minimal City Council Involvement Seven Year Terms

20. What Is the Future?

21. The Future? Charter Review Joint Powers Authority? Joint Action Agency Ownership Lease Lease Back to municipality

22. What is the Future? Status quo? Enterprise consolidation? Sell out? Lease back? Sale of Capital Assets Strong Commission structure

23. How Do We Proceed? Recommend that APPA coordinate a CEO-Level Task Force to: Analyze the issues Create Business Model Options Provide assistance for moving to a new business and governance paradigm

24. Got Ideas?