There is a lot of conflicting information out there regarding the benefits that public power provides to America's citizens. Take this short quiz and test your Public Power IQ!
(1) When investor-owned utilities talk about ‘leveling the playing field' for America's electric power industry, what do they really mean?
Forget competition and equalize electricity prices throughout the country. Public power should raise its rates. Investor-owned utilities should lower their rates.
(2) Investor-owned utilities already serve 3 of 4 Americans — 75% of the electricity market. So, why are they so worried about public power?
Competition is coming to the electric power industry and investor-owned companies are not cost-competitive. Investor-owned utilities are not worried about public power. Public power gets giant government hand-outs that investor-owned utilities can't match.
(3) Why are public power rates, on average, lower?
Investor-owned utilities don't get big tax advantages. Public power has huge tax advantages. Public power is public — it's non-profit and locally owned.
(4) Isn't public power's authority to sell tax-exempt bonds to finance construction just an unfair advantage in the marketplace and a rip-off for taxpayers?
Yes, public power's tax-exempt bond authority puts investor-owned utilities at a competitive disadvantage without benefit to taxpayers No, public power's tax-exempt authority actually benefits consumers and leaves investor-owned utilities with plenty of fundraising options unavailable to public power.
(5) Why doesn't public power simply raise its rates and make more money?
Public power's rates are already so high that most customers couldn't afford to pay more. Because public power stockholders continue to vote rate hikes down. Public power doesn't exist to make money, but to provide service.
(6) Should we 'level the playing field' by 'privatizing' public power, the way it's been done in Britain and other parts of Europe?
Yes, the rest of the world — Europe and the former Communist block in particular — are privatizing their utilities. America should get in step. No, comparing America's utility industry with Europe's makes no sense. They are completely different.
Check your answers >
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