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Publicly owned utilities and CCAs say governance, financing explain lower rates; CalCCA details $19B tax‑exempt bond program
Summary
Representatives of California’s municipal utilities association and the California Community Choice Association told the Little Hoover Commission that local governance, access to tax‑exempt bonds and joint procurement explain why many publicly owned utilities and CCAs have lower retail rates than investor‑owned utilities.
Derek Dolphy, director of energy for the California Municipal Utilities Association, told the commission that public power utilities are locally governed, not‑for‑profit agencies that directly answer to elected officials. He explained the four main POU types — municipal departments (for example, Los Angeles Department of Water and Power), municipal utility districts (SMUD), public utility districts and irrigation districts — and said there are 49 POUs serving about 25% of the state’s load.
Dolphy said POUs typically access tax‑exempt bonds and can pool resources through joint action agencies such as the Southern California Public Power Authority (SCPPA) and the Northern…
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