Public Power 101 Slides

PRESENTER’S NAME

TITLEAMERICAN PUBLIC POWER ASSOCIATION

Data from the Energy Information Administration, 2014 and Public Power Statistical Report, 2015

ABOUT PUBLIC POWER

INDEPENDENT GENERATORS

10.1%40.3%

FEDERALPOWERAGENCIES

6.6%5.1%

RURAL ELECTRIC COOPERATIVES

38.0%

WHO GENERATES POWER IN AMERICA?

PUBLIC POWERUTILITIES

INVESTOR-OWNEDUTILITIES

ELECTRICITY IN THE U.S. IS GENERATED FROM

38.6%

27.8%

19.5%

7.1%

0.7%

COAL

NUCLEAR

NATURAL GASHYDROPOWER

RENEWABLES (NON-HYDRO) & OTHEROIL

6.2%

ELECTRICITY USED BY PUBLIC POWER IS GENERATED FROM

28%

39.5%

7.6%

2.2%

5.4%

COAL

NUCLEAR

NATURAL GASHYDROPOWER

RENEWABLES (NON-HYDRO) & OTHEROIL

17.3%

2,012 PUBLIC POWER UTILITIES PROVIDE ELECTRICITY TO 48 MILLION PEOPLE* IN 49 STATES AND 4 U.S. TERRITORIES

1 IN 7 ELECTRICITY CUSTOMERS IN THE U.S. ARE SERVED BY PUBLIC POWER

*Based on U.S. Census Bureau stats of 2.54 people per household/meter

Only answer to customers No profit motives

PUBLIC POWER IS AFFORDABLEWhat residential customers pay if they are served by:

CENTS PER KILOWATT HOUR

Transparent rate setting process

Help customers use less energy and save on bills

11.6 11.4 13.1

PUBLIC POWER UTILITIESRURAL ELECTRIC COOPERATIVES

INVESTOR-OWNED UTILITIES



Public power’s share of the U.S. electricity market

10% of generatio

n

PUBLIC POWER REACH

10% of transmission

16% of distribution

IN ALL STATES & TERRITORIES EXCEPT HAWAII

HOW MANY CUSTOMERSDOES A PUBLIC POWER UTIL ITY HAVE?

1,360 PUBLIC POWER UTILITIES HAVE

UNDER 4KCUSTOMERS

328 PUBLIC POWER UTILITIES HAVE

4-10KCUSTOMERS

159 PUBLIC POWER UTILITIES HAVE 10-40KCUSTOMERS

44 PUBLIC POWER UTILITIES HAVE 40-100KCUSTOMERS

30 PUBLIC POWER UTILITIES HAVE

100K+CUSTOMERS

More than 100k customers

40k–100k customers

10k–40k customers

4k–20k customers

Under 4k customers

0 200 400 600 800 1000 1200 1400

30

43

159

328

1,360

Number of Public Power Utilities

Number of customers

HOW MANY CUSTOMERSDOES A PUBLIC POWER UTIL ITY HAVE?

Is owned by the community

Is usually a division of local government

Is transparent (subject to sunshine laws)

Involves citizens in decision-making

WHAT IS PUBLIC POWER?

Brings electricity to homes and businesses

May generate and/or buy power

Is a not-for-profit entity

A PUBLIC POWER UTILITY

FEDERAL POWER SUPPLIERS:GENERATION

Federally-owned Hydro, nuclear, and other sources

Serving public power and rural electric cooperatives

TENNESSEE VALLEY AUTHORITY

Generate and sell electricity

POWER MARKETING ADMINISTRATIONS

Federally-ownedMarket and transmit electricityHydro and other sourcesPrioritize supply to public

power Western Area Power

Administration

Bonneville Power Administration

FEDERALPOWER SUPPLIERS:TRANSMISSION

Southeastern Power Administration

Southwestern Power Administration

THREE TYPES OF ELECTRIC UTILITIES

Not for profit, community-owned

Only for interstate transmission

Very limited instances

Elected/appointed boards – mayors, city council members, citizens

BUSINESS MODEL

FERC JURISDICTION

REGULATED BY STATE PUBLIC UTILITY COMMISSION

GOVERNED BY

Not for profit, member-owned

Only for interstate transmission

Some

Member-elected boards

For profit, shareholder-owned

For wholesale rates

All

Private boards




# OF ELECTRIC UTILITIES IN AMERICA

26%

7% 6%0.3%


POWER MARKETERS

INVESTOR OWNEDUTILITIES


61%

FEDERALPOWERAGENCIES

UTILITIES CAN RA ISE FUNDS THROUGH Stock issue or corporate

debt

Loans from the U.S. Department of Agriculture’s Rural Utilities Service, or cooperative and private lenders

Tax-exempt municipal bonds




ELECTRICITY CUSTOMERS SERVED BY

68%

15%

13%

4%

MOSTLY IN TEXAS




POWER MARKETERS

PUBLIC POWER UTILITIES ARE LIKE OUR PUBLIC SCHOOLSANDLIBRARIES

Elected or appointed boards—mayors, council members, citizens

Division of local government

Community-owned

LOCAL CONTROL LOW RATES HIGH RELIABILITY

PUBLIC POWER =

+ +

National average retail rates: cents per kilowatt hour

PUBLIC POWER COSTS LESS

RESIDENTIAL BUSINESS OVERALL

11.4


11.6


13.1


8.91


9.52


10.4


10.8


9.3


10.1


Public power utilities employ 93,000 people and earn $58 BILLION in revenue annually

ECONOMIC DEVELOPMENT

POWERFUL ECONOMIC ENGINES

NEW BUSINESS TO THE COMMUNITY

BUY LOCAL

PUBLIC POWER UTILITIES COLLECTIVELY GIVE MORE THAN

$1 BILLION BACK TO THE COMMUNITIES THEY SERVE

PUBLIC POWER G IVES BACK

5.5% of electric operating revenues to state and local governments

Property-like taxes, payments in lieu of taxes, general fund transfers, free and reduced cost electric services

AMERICAN PUBLIC POWER ASSOCIATION

POLICY ADVOCACY

Trade association representing public power utilities across the U.S.

MEMBER EDUCATION AND

INFORMATIONBEST PRACTICES AND RESOURCES

Leave decision-making to local and state authorities

Make policies fair to all customers — solar and non-solar

Keep participation in net metering voluntary for public power

SOLAR

CLEANPOWER PLAN

! Too much too fast for many states

! Premature closure of coal plants with emission control could result in stranded assets and drive up costs

! Mandatory capacity markets don’t work

! NO new mandatory capacity markets without unanimous approval of states in the region

! Performance requirements don’t make sense

! Protect public power’s right to SELF SUPPLY

CAPACITY MARKETS

J.D. Power 2016 Business Customer Satisfaction Survey4 out of top 8 utilities are public power

• Midwest midsize: Omaha Public Power District Nebraska• South midsize: JEA, Jacksonville, Florida• West large: Salt River Project, Arizona• West midsize: Sacramento Municipal Utility District,

California

BEST IN CUSTOMER SERVICE

JOINT ACTION AGENCIESBUY POWER & PROVIDE SERVICES

FOR A GROUP OF UTILITIESECONOMIES OF SCALE STRENGTH IN NUMBERS

PUBLIC POWER SOURCES

Where Public Power Utilities Get The Power They Distribute

2/3: Generation owned by public power utilities and joint action agencies

1/3: Generation bought from investor-owned and co-op utilities and federal power agencies

Residential

ELECTRICITY CUSTOMERS

Business Industrial

HOW ELECTRICITY FLOWS

Documents

Public Power 101 Slides