Title: The Relevance and Importance of Public Power in the United States
Abstract:power made its debut in the United States in the 1880s and, like no other industrial force, shaped the future of the American economy. Public power systems, utility systems owned and operated by local...power made its debut in the United States in the 1880s and, like no other industrial force, shaped the future of the American economy. Public power systems, utility systems owned and operated by local governments, helped usher in this historic change. Two cities in the Midwest Wabash, Indiana and Butler, Missouri had already lit their courthouse squares in 1880 and 1881, respectively, before Thomas Edison first delivered electricity from his Pearl Street central generating station in New York City in 1882. Today, almost 125 years later, there are more than two thousand public power systems providing low-cost, customer-oriented electric service to more than 40 million Americans. By the end of this year, more than five hundred of these will have celebrated their centennial anniversary. Annually, they provide about 16.5 percent of the total megawatt hours sold at retail but, interestingly, they receive only 15.8 percent of the total revenue of annual retail sales. In recent years, the question has been posed, public power systems still relevant? Are they necessary? or, in more disparaging language, Aren't they really antiques? Some contend that there is no role for public power systems in the new deregulated industry because efficient production and pricing of electricity will be taken care of by competitive market forces. Municipalities that may be considering taking over provision of electric service within their city limits are advised to leave this specialized business to the existing electric companies and focus instead on providing the public those services that they are uniquely equipped to handle. Allegedly, the factors that contributed to the successful formation of public power systems over a century ago no longer exist. These questions and this view provide the context for discussing the state of public power today and industry issues affecting it. It also provides the context for discussing the continuing economic role and legitimacy of public power today and in the future. Before discussing these issues, it is necessary to briefly describe public power systems because the term is often used incorrectly. Federal power systems, such as the Tennessee Valley Authority, the federal power marketing administra-Read More
Publication Year: 2016
Publication Date: 2016-01-01
Language: en
Type: article
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