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5.5. ERMUSR 03-19-2013
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5.5. ERMUSR 03-19-2013
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4/26/2013 2:08:10 PM
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City Government
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3/19/2013
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Meet Minnesota's municipal electric and natural gas utilities <br />i �A 1 <br />Big and small (but mostly small) <br />By far the largest municipal <br />electric utility is Rochester, which <br />serves 49,269 customers. Moor- <br />head, Austin, Anoka, Owatonna <br />and Shakopee are the only other <br />municipal electric utilities with <br />more than 10,000 customers. <br />Most municipal electric utilities <br />serve smaller cities in Greater <br />Minnesota: <br />• 95 percent have fewer than <br />10,000 customers; <br />• • 82 percent have fewer than <br />5,000 customers; <br />• 73 percent have fewer than <br />2,500 customers; <br />• 38 percent have fewer than <br />1,000 customers; <br />'Public power' <br />How much do you know <br />about Minnesota's <br />municipal utilities? <br />Here are some facts you <br />might find interesting. <br />• There are 125 mu- <br />nicipal electric and 31 <br />municipal natural gas <br />utilities in the state, <br />and they serve approxi- <br />mately 360,750 electric <br />and 80,000 natural gas <br />customers. <br />• Municipal utilities <br />are created through a <br />majority vote in a local <br />referendum. <br />• Regulation is largely <br />through the city council <br />or local utilities com- <br />mission. <br />• Open, accessible, gov- <br />ernance is one reason <br />municipals are also <br />known as 'public power' <br />utilities. <br />• Municipals are non- <br />profit. Rates are cost - <br />based. <br />Our business philosophy <br />The trend in the electric utility <br />industry these days is consolida- <br />tion. Utility mergers are wide- — <br />spread. As these companies ,r...� <br />get bigger, they tend to get <br />farther and farther away from <br />their customers. <br />• Most return some <br />funds to the city gener- <br />al fund, usually in the <br />form of in- lieu -of -tax <br />payments. Municipal <br />utilities often help with <br />'in -kind' services, and <br />may also make addi- <br />tional contributions. <br />Being locally -owned and operated organizations, municipal utility poli- <br />• 19 percent have fewer than 500 cymakers and staff not only have a career interest in their community's <br />customers. success, they have a personal stake in the city in which they have chosen <br />to raise their families and build life -long relationships. Because of this, the <br />• The average municipal electric utility's interest in the well -being of its community and devotion toward <br />utility has 2,941 customers. The maintaining a high quality of life is more than corporate slogan —it's the <br />median has 1,268 customers. foundation of our business philosophy. <br />• The smallest municipal electric <br />is tiny Whalan, population 63. Century of service <br />Over half of our municipal electric <br />The largest Minnesota municipal utilities have successfully <br />gas system is Duluth, with 25,871 operated for 100 years or more. <br />customers. Austin, Owatonna, <br />New Ulm, and <br />_, pS,:GA Wq Tt <br />Hutchinson i <br />also have more AND 4R <br />than 5,000 gas • I <br />customers. <br />ELECTRIC LIGHT <br />� <br />• Two - thirds have fewer than 1,000 :, - WORKS. <br />8 <br />customers. More than half have x' t ' g <br />fewer than 500 customers. <br />
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