More Cities Are Considering Municipalization of Utilities
Faced with reliability problems and volatile energy prices, more cities are looking into forming a municipal utility, to manage energy risks for their citizens. Municipalization involves forming a new city-owned utility for the purpose of serving residents with natural gas or electric service. A municipal utility may be able to serve its residents at a lower price because investor-owned utilities are raising retail electric rates or they tend to levelize rates over large geographic areas, without regard to cost.

Feasibility Study
Cities typically start the process with a feasibility study to examine the cost and potential savings from developing a new utility. This study includes an analysis of the cost to purchase or rebuild existing infrastructure, procurement of a wholesale power supply, operation and maintenance costs, debt and financing costs, potential savings for residents and potential revenues for the city.

Experience in the Process
Dahlen, Berg & Co. has performed feasibility studies, seen cities through the citizen vote process, and we assist existing municipal utilities with rate design, power procurement, and other operational issues. We can help your city determine if municipalization is worth a look.

Example Clients

• City of Emmetsburg, Iowa
• City of Everly, Iowa
• Minnesota Municipal Power Agency

To learn more, e-mail James Larson or call (612) 252-6524.