Feasibility Study
The first step in the municipalization process usually involves a feasibility study. A properly scoped study should seek to answer the big questions:

• Are there any legal hurdles to forming a utility?
• Are current electric rates too high?
• Is a lower cost power supply available?
• What is the estimated value of the existing distribution system?
• What other costs would a new utility incur?
• What process needs to be followed to form a utility?

Power supply costs are usually the single largest cost item for a new utility. The value of the existing system, stranded costs, and future transmission arrangements are issues that frequently dominate the public debate. However, power supply is the issue that will make or break the utility’s success.

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