Economic development advantages of municipally owned utilities
Download
1 / 25

Economic Development Advantages of Municipally-owned Utilities - PowerPoint PPT Presentation


  • 72 Views
  • Uploaded on

Economic Development Advantages of Municipally-owned Utilities. Utilities are Key for Development. Municipals Control Their Own Destiny Can Decide Where and When to Extend Utilities Control your rates, charges and some measurements. (ie-kW demand, kVar charge, line extension).

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about ' Economic Development Advantages of Municipally-owned Utilities' - wendi


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

Utilities are key for development
Utilities are Key for Development Utilities

  • Municipals Control Their Own Destiny

  • Can Decide Where and When to Extend Utilities

  • Control your rates, charges and some measurements. (ie-kW demand, kVar charge, line extension).

  • Do Not Need to Make a Profit or Pay Taxes


Traditional municipal utilities
Traditional Municipal Utilities Utilities

  • Water

  • Sewer

  • Electric

  • Natural Gas

  • Telecommunications


Local economic impact
Local Economic Impact Utilities

  • Local Jobs (employees)

  • Larger portion of utility dollars remain in the community versus being sent to stockholders around the world.

  • Lower prices mean more money remains in the municipality.

  • Assistance to the City (PILOT, other)

  • Billing Costs spread over more utilities, etc.


Local economic impact1
Local Economic Impact Utilities

  • Utilities in vicinity lower their prices.

  • Joint Pole Agreements ($15 to $30 pole year)

  • Efficiency of four or five utilities being installed simultaneously

  • Vehicle and equipment purchases from local businesses

  • Location of fire hydrants to help lower insurance rates


Grow your town through pre annexation agreements
Grow Your Town through Pre-Annexation Agreements Utilities

  • Provide Water Service (where legal) outside of your town, and provide a clause that the customer will be annexed at the City’s discretion. If customer does not want to annex in now, put clause that customer will be annexed in “in X years”.

  • Provide Natural Gas Service (where legal) under the same terms.

  • Village of Freeburg example


Natural gas advantage
Natural Gas Advantage Utilities

  • Municipal Bond/Prepay- Can do long-term purchases at a discount to the local index.

  • Like a buyers club card whereby you can get ten gallons of gasoline each month for $.40 per gallon off of the price on the pump.


Telecommunications
Telecommunications Utilities

  • Broadband over power lines

  • Ability to run fiber and fiber backbone throughout your community

  • Ability to lease or provide bandwidth to municipal facilities, schools, libraries and other governmental entities.

  • A town without high speed data transfer capabilities will be like a town in the early 1900s that did not have electricity.


Natural gas pipeline advantages disadvantages
Natural Gas Pipeline Advantages/Disadvantages Utilities

  • In some cases a municipality is advantaged or disadvantaged by which pipeline it is on.

  • Large utilities purchase from several pipelines (with focus on the cheapest) so you get the average of the cost.

  • Municipals on low-cost pipelines have an advantage.


Energy efficiency
Energy Efficiency Utilities

  • Municipal Utilities can customize energy efficiency programs to meet the specific needs of the customers.

  • Makes facility more modern and competitive.

  • Shows local commitment to the company.


When electric price is a major factor for a new industry
When Electric Price is a Major Factor for a New Industry Utilities

  • Customer Insists on Electricity at 4.5 cents per kWh

  • Utility determines the “expense gap” to provide that service.

  • City proposes a special rate for the customer that will provide 4.5 cents per kWh for three years (based on the projected usage).

  • Proposal is for a demand and energy rate that specifically meets the proposed usage level for a fixed time period. State specifically usage from “say” January, 1, 2012 through December 31, 2013.

  • Municipal runs calculations of what the cost of service would be and then backs in to how much extra money will be needed to make up the cost of service versus the sale price of the electricity.


  • Raise the delivery voltage to as high a voltage as possible to reduce expense and line losses. Meter location flexibility?

  • Do not offer other incentives (ie, free land, line extensions, CDAP for roads, etc.

  • Use CDAP for electric line extensions

  • Deed “free industrial park land” to the electric utility. The utility sells it to customer and puts the money in a fund to subsidize the electric bill.


If up front costs are important
If Up-Front Costs are Important to reduce expense and line losses. Meter location flexibility?

  • Reduce or Eliminate “Up-Front Costs” for Line Extensions

  • Council develops a new rate whereby the customer can choose to either be on the standard city rates and pay for the line extension or be put on competitor’s rate until the increment pays off the line extension.

  • Works for “Gas, Electric, Water , Sewer and Telecom”.


Simplistic rates are best for new projects
Simplistic Rates are Best for New Projects to reduce expense and line losses. Meter location flexibility?

  • Prospect “fears” uncertainty.

  • Keep Terms Simply and Easy to Understand (especially for Foreign Accounts)

  • Summarize terms and give an estimate of a final cost per kWh.

  • Fixed monthly credit to bill is better than a rate discount. Can see it on bill.


Electric reliability is important
Electric Reliability is Important to reduce expense and line losses. Meter location flexibility?

  • Plastics harden in Molds

  • Computers don’t work

  • Material is scrapped

  • Frozen products thaw

  • Some stores base staffing on prior year same-day sales

  • Scientific Experiments are ruined

  • Pay “hundreds of employees” to stand around

  • Can be a fire hazard or safety issue


Reliability advantages
Reliability Advantages to reduce expense and line losses. Meter location flexibility?

  • SAIFI- The number of times an average customer on the system loses power for one minute or more.

  • CAIDI- For customers losing power for one minute or more, the number of minutes on average that they were out of power.

  • CAIFI –For customers losing power for one minute or more, this is the number of times that they were out of power on average.


Locally based crews
Locally-Based Crews to reduce expense and line losses. Meter location flexibility?

  • Local Crews mean shorter response times.

  • IOUs moved to Regionally-based system

  • Local Crews know the area and the system

  • Equipment stored near the customer


Saifi by utility in 2010
SAIFI by Utility in 2010 to reduce expense and line losses. Meter location flexibility?

  • Com Ed 1.35

  • AmerenCIPS 1.27

  • AmerenIP 1.28

  • AmerenCILCO 1.60


Caidi by utility in 2010
CAIDI By Utility in 2010 to reduce expense and line losses. Meter location flexibility?

  • Com Ed 3.02 hours

  • AmerenCIPS 1.72 hours

  • AmerenIP 2.57 hours

  • AmerenCILCO 2.80 hours


Caifi by utility in 2010
CAIFI by Utility in 2010 to reduce expense and line losses. Meter location flexibility?

  • Com Ed 1.73

  • AmerenCIPS 2.01

  • AmerenIP 2.05

  • AmerenCILCO 2.38


Generation back up
Generation Back Up to reduce expense and line losses. Meter location flexibility?

  • Some Utilities Charge $2 per kW Month

  • Added benefit for reliability and voltage support

  • Purchase fuel locally to help the economy


Customize rate offering
Customize Rate Offering to reduce expense and line losses. Meter location flexibility?

  • City Council has flexibility as long as it is not arbitrary, capricious, unfair and is lawful. Must be open to others (similar)

  • Can define what “kW demand” is.

  • Can provide second feeds and line extensions.

  • Determine fees for line extensions


Other services municipals can offer
Other Services Municipals Can Offer to reduce expense and line losses. Meter location flexibility?

  • Infra Red Scanner

  • Energy Audits

  • Underground Services

  • Well Service for Untreated Water

  • Hydrant Locations

  • Backup Fire Suppression from Ponds

  • Double Feeds, Multiple Feeds

  • Transformer On Site


Customized tree trimming
Customized Tree Trimming to reduce expense and line losses. Meter location flexibility?


Questions
Questions? to reduce expense and line losses. Meter location flexibility?


ad