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Joy Ditto is president and CEO of the American Public Power Association, a trade organization that advocates for the nation’s community-owned, not-for-profit public power utilities.
In these challenging times, Americans are understandably concerned about the future — and affordability — of essential services once taken for granted. One such service is electricity.
For some time now, Mainers have been weighing their options for reliable, affordable and environmentally responsible power.
After much thoughtful discussion, Maine appears ready to take concrete steps toward exploring alternative options for their communities served by investor-owned utilities. Among these options is public power, that is, community-owned not-for-profit electric service, which is enjoyed by more than 2,000 communities in 49 states (including Maine). These utilities serve cities as large as Los Angeles, San Antonio and Nashville, but most serve communities of less than 10,000 people. There are even state-run utilities such as the New York Power Authority that may prove to be good models for Maine to evaluate. There’s even one state — Nebraska — which is served exclusively by not-for-profit public power and rural electric cooperative utilities.
Lawmakers in Augusta should give serious consideration to the public power option as they prepare for the upcoming legislative session.
Maine is not alone. Across the country, we’ve seen states and communities take a hard look at public power. And many are well on their way to forming new public power utilities.
Mainers take pride in a strong sense of community and collective social responsibility. The beauty of the public power model is the importance it places on local choice and local decision-making.
The people of Maine know how to best meet the needs of their communities, and they deserve a utility that is responsive to those needs. Utilities owned by — and accountable to — the people they serve are often driven by the needs and concerns of those people.
While public power has earned great and growing popularity, every community must decide for themselves what would be the best fit. One size does not fit all. The top priority of any community’s utility planning should be to provide safe service its residents can count on, at the lowest possible cost.
When compared against other types of utilities, as a whole, public power consistently excels in these measures. Public power may not be the right choice for every community in the United States, but it is certainly one that should be considered for Maine.
Beyond reliability and affordability, public power could be a vehicle to help the people of Maine achieve their most ambitious and laudable goals, including a state-mandated goal of zero carbon emissions by 2050.
The public power business model is well-suited to help reach this goal and other goals determined by Mainers for Maine.
Experts estimate that Mainers may be forced to increase the current capacity of their electrical grid threefold if they are to meet their future green energy goals. This will not be inexpensive. Perhaps the most affordable way to get there is by taking advantage of tax-exempt financing, which is available to public power utilities.
State Rep. Seth Berry, a sponsor of the bill to create a customer-owned utility, has correctly pointed out that not only could public power help the people of Maine achieve their clean energy goals in less time, but it could help them do so in an equitable and affordable manner. As a recent London Economics report notes, the initial short-term investment in public power may seem front-loaded, but the long-term benefits accrue with local decision-making, enhanced responsiveness, and a decreased reliance on fossil fuels.
Mainers are committed to doing their part to fight climate change and ensure a safe and clean environment for their children and grandchildren. They have made this position clear time and again. Many Mainers view public power as the smartest way to realize the energy future they want. Leaders in Augusta are right to listen to their views and should be supported and encouraged as they take a hard look at bringing public power to the people.