The Benefits of Municipal Utility Entities

For more than 20 years, Douglas Healy has been working as an energy and utilities attorney. Based in Missouri, he represents municipal utilities in state, federal, and administrative litigation as a member of Healy Law Offices. Attorney Douglas Healy also serves as general counsel to the Missouri Joint Municipal Electric Utility Commission (MJMEUC).

Municipal energy, or public power systems, are not-for-profit utilities that are operated by the state, county, municipality, or other public body. Discussed below are several advantages of public power systems in comparison to private power systems.

Local control
Since municipal utilities exist to provide a service to all local industries, citizens, and businesses in their area, they are wholly owned by the community they serve. This ensures that the local community has a say in the utility’s rates and service, along with any policies affecting the utility.

Competition
In the world of private utilities, there is relatively little competition in the marketplace. Rather, utilities operate as monopolies. Conversely, municipal utilities must compete with other public and private utilities, thereby resulting in lower rates and better customer service.

Supports the local economy
Municipal utilities, as local enterprises, improve and maintain a sound local economy by boosting local employment and paying local taxes. Since they also offer lower rates to stay competitive, consumers also have more money to invest in their local economy.