Public Power

Public power companies are nonprofit utilities that are owned and operated by municipalities, other government entities, or rural electric cooperatives. They serve over one quarter of electricity customers in the U.S.

Some states regulate public power companies. In these jurisdictions, the locally owned utilities must get state regulatory approval to change rates. They must also comply with all or some consumer protection and customer service quality rules. Other states do not regulate these entities, leaving rates and consumer protection policies in the hands of the local board or elected officials.

Some states have considered proposals to convert all or portions of an investor-owned utility’s service territory into a local or publicly owned and operated system. The process of converting private utilities to public ownership is complex, expensive, and time-consuming. It can involve years of litigation and delay.