Coopers & Lybrand has released its 1996 Electric Municipalization Review, which examines the two municipalizations completed since the Energy Policy Act of 1992: Broken Bow, OK, and Bozrah, CT.
Broken Bow, which began operating in 1995, serves the new six-megawatt (Mw) load of one industrial customer and owns no electric facilities; Public Service Co. of Oklahoma serves town residents. The Town of Bozrah had been served by a privately held corporation, Bozrah Light & Power (BL&P), whose owner was retiring and wanted to sell. The municipal utility in Groton, CT, bought BL&P for $5.4 million to enlarge its service territory and help replace its shrinking defense-related customer base.
The report also reviews six ongoing municipalization and other public power efforts:
The Wing Group: Assisting a group of New York cities to municipalize by taking over Niagara Mohawk Power Corp.'s facilities. Would bear all upfront costs and recoup investment from realized savings.
Palm Springs, CA: Pursuing a "muni-lite" approach. Has asked the Federal Energy Regulatory Commission to order Southern California Edison (SCE) to provide transmission to the meter under section 211 of the Federal Power Act. Plans to compete with SCE.
Long Island Lighting Co.: Subject to several efforts by established public power entities to lower rates. Proposals include a government buyout and dismantlement, a modified muni-lite approach, and community efforts to municipalize.