Powering Strong Communities

New York City Public Advocate issues plan for municipalization

Like What You Are Reading?

Please take a few minutes to let us know what type of industry news and information is most meaningful to you, what topics you’re interested in, and how you prefer to access this information.

Jumaane Williams, Public Advocate for the City of New York, recently released a plan for municipalizing the city’s electric grid.

The Aug. 7 report, “Municipalizing New York City’s Electric Grid,” provides details on municipalization efforts across the U.S. including Pueblo, Colo., and in California, San Francisco and San Jose.

In addition, the plan includes municipalization case studies. “Each municipalization effort faces unique conditions and there is no single playbook or set of best practices for the process, but these case studies demonstrate how municipalization could unfold in New York City.”

Included among these case studies is the City of Massena, N.Y.’s takeover of a section of Niagara Mohawk’s distribution grid in 1981 under Article 14-A of the New York State General Municipal Law. The New York City Public Advocate noted that with the implementation of municipalization, residents received an electricity rate reduction of 20 percent. “These lower rates have continued to the present day,” the plan said.

Policy recommendations

In outlining possible paths for the city to pursue municipalization, the plan notes that one option would be to make a home rule request. The Office of the Public Advocate has submitted legislation for the city of New York to be granted control over an authority to take over the distribution and transmission assets of the local electric utility company.

Under this approach, a city ordinance can be passed in the New York City Council to request state action in the state legislature. This is how the Village of Green Island, N.Y., was able to form the Green Island Power Authority (GIPA) back in 1986, according to the New York City Public Advocate. “This has the advantage of a local/state partnership that could both hasten the process while ensuring local input and control.”

Another option involves taking the approach utilized by Massena. “This is one way we can take the utility under public control, but it does have a certain number of constrictions, such as needing to project bond costs.”

The plan is available here.

APPA offers municipalization resources

The American Public Power Association offers a number of resources related to municipalization on its website.