Public power utilities are non-profit, community-owned and locally operated electric systems that typically provide lower electric rates and better service to customers.
The consumer-owned, municipal utilities of Massachusetts serve approximately 380,000 customers in all or parts of 48 cities and towns with a total population of about 850,000. Together, municipal utilities deliver about 13 percent of the electricity used in Massachusetts. Nationally, there are more than 2,200 consumer-owned utilities, which collectively are called public power systems because they are publicly owned and operated.
The primary difference between municipal utilities and private, investor-owned utilities (IOUs) is that municipal utilities use all customer payments to provide low-cost electric service or meet other community needs. Private utilities are in business to earn a profit for their stockholders, as well as to deliver electricity, which means that customer payments are used in part to pay stockholders all over the country.
For more information on public power, explore the website of the American Public Power Association.
