Powerful US utilities secretly fund ‘grassroots’ groups to sway cities away from switch to public power
Summary
Private utility companies in the US are funding local groups to oppose efforts by cities to take control of their electric grids and create public power systems. Public power utilities are owned by local governments and usually have lower rates and better service, but private utilities risk losing profits if cities municipalize their power systems.Key Facts
- Many US communities want to create municipal utilities, which are locally owned and tend to have lower electricity bills.
- Private utilities are secretly funding groups to discourage cities from switching to public power.
- In Ann Arbor, Michigan, a local group opposing public power is actually funded by DTE Energy, the main private utility there.
- DTE and other private utilities stand to lose billions if more cities municipalize their electricity grids.
- Municipal utilities reinvest excess money into the grid or use it to lower customer bills, unlike private utilities that pay profits to investors.
- The municipalization process requires cities to pay utilities for the infrastructure but allows local control of electricity.
- Cities like Ann Arbor have tried other options, such as sustainable energy programs, but still rely on private utilities for their grid.
- Some utilities use unusual tactics, like hiring canvassers from plasma donation centers, to fight public power campaigns.
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