ElectriCities
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What is Public Power?

Public Power's first light in North Carolina brightened night skies in Statesville on a chilly February evening in 1889, when a local resident flipped the switch on the state's first municipally owned utility. Since then, more than 70 other N.C. cities, towns and university systems have joined Statesville in the Public Power industry. To them, owning their own power system means local control; fast, neighborly service; and economic benefits for their residents. That theme has proven to be true time and time again.

To maximize their value to their communities and customers, 64 of those cities formed a not-for-profit organization in 1965 that would protect the interests of Public Power. That group was eventually named ElectriCities of North Carolina, Inc.

ElectriCities has 99 members, representing Public Power communities in North Carolina, South Carolina and Virginia that distribute electricity. Fifty-one of them are also participants in either North Carolina Municipal Power Agency Number 1 or North Carolina Eastern Municipal Power Agency, which also generate the power supplied to their more than 400,000 customers.

Public Power communities have a long history of service. The average ElectriCities member has more than 75 years of experience operating an electric distribution system, many nearing 100 years of service.

Public Power is a national concept, with approximately 2,000 municipally owned electric utilities serving more than 35 million Americans. Most of these utilities serve small communities with populations between 10,000 and four million. Some large metropolitan areas – Los Angeles, Memphis and San Antonio – however, are also Public Power communities.

Why be a Public Power community?

Revenue from electricity sales in Public Power communities goes toward operation of the system and then to providing better community services and improving the quality of life for residents. A municipally owned utility does not have to pay a dividend to shareholders. In a Public Power community, “stockholders" are all those who benefit from municipal services – the citizens of the community.

Customers have a voice in the activities of their electric systems. Since each municipality sets its own policies, customers can speak out on electric power issues at their city and town council meetings. Public Power is the public's business.

Why was ElectriCities formed?


In 1965, the battle for territory between private utilities (investor-owned utilities, or IOU's), electric cooperatives, and the cities intensified statewide. The result was the 1965 Electric Act, promising to resolve many of the disputes between the IOUs and co-ops. The 1965 Act, however, created new difficulties for municipal systems, which were left out of the legislation by restricting their right to serve customers in areas annexed in the future.

ElectriCities was organized to provide the municipal systems a unified voice to speak out in the legislature against the bill. The group was unable to stop passage of the bill, but decided to form a permanent alliance to help Public Power become a stronger voice for its customers statewide. In 1983, at the request of the cities, the Legislature expanded this voluntary association with the passage of Chapter 159B of the North Carolina General Statutes allowing North Carolina's "electric cities" to form a joint municipal assistance agency to provide aid and assistance to municipalities in the construction, ownership, maintenance, expansion, and operation of their electric systems.

Since then, ElectriCities has been a powerful force for Public Power in North Carolina, and now has grown to reach cities in Virginia and South Carolina.

Based in Raleigh, ElectriCities' staff members watch legislative issues closely to ensure its members have a voice in any legislation that may affect electricity issues. ElectriCities members are currently preparing for future competition. They want to make sure Public Power helps shape any legislation which could restructure the electric utility industry.

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What other services does ElectriCities provide?

With the strength of its membership, ElectriCities is able to provide consolidated technical, administrative, and management services to its members. By using services offered at group rates, member cities are able to maintain their electric systems and equipment better. Services including aerial device testing, infrared scanning and substation maintenance training cost significantly less through ElectriCities contracts than if the cities contracted the services themselves, demonstrating collective strength.

ElectriCities schools and workshops keep utility personnel up-to-date on how to properly handle hazardous substances, customer service, utility credit and collections, load conservation marketing and other aspects of the business. Comparable schools elsewhere cost two to three times more. Training programs encourage safe work habits and reduce potential liability. Lineman training and municipal transformer schools teach member city employees step-by-step safety measures to use in their daily duties. Retail rate assistance helps municipalities establish effective rate schedules. Communications, legislative and legal services present a unified message for Public Power across the state.

Through the Emergency Assistance program, cities help each other in times of disaster. For the electricity industry, the forces of Mother Nature present regular challenges, and can be particularly hard here in North Carolina. Despite the direct hits, municipal crews continue to beat the averages, restoring power to customers, while significant numbers of other utility customers remain in the dark.

What is the decision-making body for ElectriCities?


With the passage of House Bill 556 in 1995, ElectriCities reorganized and formed a new, 14-member Board of Directors consisting of 12 members from Power Agency participants and two from non-Power Agency member cities. The smaller board enables quick decision-making in a fast-moving Public Power industry. The formation of the new board eliminated the old structure, which consisted of three boards, 30 committees and 136 individuals making the decisions.

How is ElectriCities funded?


ElectriCities is a not-for-profit organization that is financed through membership fees and dues, as well as through rate and service revenue and tuition from training programs and workshops. With a reorganization several years ago, a new status was created to allow for associate members, which include the South Carolina and Virginia cities and university systems.

Does ElectriCities provide power to its members?


ElectriCities is a service organization, not a power supplier. Fifty-one of its members receive their electricity from their participation in one of the state’s two Power Agencies. Other members purchase power from investor-owned utilities such as Duke Power and Carolina Power & Light or from other power suppliers like the cooperatives. ElectriCities provides management services to both Power Agencies, a sharing arrangement that prevents duplication in costs.

Several ElectriCities members are known as satellites, since they buy their electricity from nearby larger cities that are Power Agency participants.

Is ElectriCities a co-op?


No. Co-ops, also known as electric membership corporations or cooperatives, are consumer-owned electric systems with customers primarily in rural areas. ElectriCities provides service to municipal and university-owned systems.

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