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I. Overview <br />Public power systems provide a direct benefit to their communities in the form of payments <br />and contributions to state and local government. Using the most current data year, APPA <br />calculated net payments and contributions for 382 public power systems for fiscal year 2006 <br />and determined that the median amount was 5.0 percent of electric operating revenues. <br />The payments are property-like taxes, payments in lieu of taxes, and transfers to the <br />general funds. The contributions are made in the form of free or reduced cost services <br />provided to states and cities. <br />Many communities are not fully aware of the payments and total value of contributions <br />made by their publicly owned electric utility, and some utilities do not quantify all their <br />payments and contributions. APPA conducted a detailed survey of public power systems in <br />order to get a more accurate estimate. The results are presented in this report, which <br />focuses on the "rate" and "type" of payments and contributions made by public power <br />distribution utilities. <br />The report includes: <br />• Summaries by revenue size class and region of the country for both publicly <br />owned and investor-owned utilities; <br />• Details on which types of payments and contributions are most common; <br />• A listing of the typical methods used by utilities to calculate the amount of <br />payments in lieu of taxes or transfers to the general fund of the city. <br />Caution should be used when making direct comparisons with the previous reports <br />(published biannually between 1992-2004) because the utilities included in each year's <br />report are not identical. In addition, in previous reports APPA was able to include <br />information collected from the Energy Administration Administration's Form EIA-412. <br />However, EIA has discontinued that form, so payment and contribution data are now <br />collected exclusively from the APPA survey. Thus the number of public power systems <br />included has fallen from 573 in the 2002 report to 382 in the 2006 report. <br />Appendix 1 describes the data sources and methodology used for this study and Appendix <br />2 defines the geographic regions. <br />2 <br />