A New Direction for Public Power – Part II?

Glenn SteigerGeneral Manager, Glendale Water and Power

Questions to Explore

WHY Now? What Structure? What is the Future? How do we Proceed?

WHY Now? What Structure? What is the Future? How do we Proceed?

What’s Driving Change?

Technology Markets Economics Legislation Workforce issues Changing political and social

environments Customer expectations

Why Change Now?

Why Change Now?

Federal: Legislative,Regulatory,Competitive Issues

Why Change Now?

City and State: Political Intervention

The “New”Politics!!

Anti Govt.Sentiments

Why Change Now?Markets, MarketsMarkets!

RECsCarbonCapacityEtc, Etc…

Why Change Now?

Expenditures tied to municipal needs

The Transfer!Is it still Legal??

TRANSFER

Why Change Now?ConflictingFunctions

Public Works…IS…Finance…Code Enforcement…

Why Change Now?

Departmental

Competition

And

Inappropriate allocations!

Why Change Now?

Out of jurisdiction restrictions on ROI

Why Change Now?

Technological revolution

Smart Grid anyone?

WhatStructure?

What Structure?

System Strategy Political Organizational Process Technological Managerial Financial

Approach for long-term survival incorporates a participative Business Approach for sustainable

solutions

Alternative Authorities?

Municipal Corporation Charter-Granted, Locally Owned PUC Exemption

Legislative Restructure Required

Metropolitan District Broad Range of Powers Provide All Services

Requires Change in Statute PUC Exemption

Solely Controlled by City

Alternative Authorities?

Special District Water, Wastewater, Electric, Gas

New Legislation Service Beyond City Limits

Multi-Community Entity Joint Powers, Muni. PUC Exempt Municipal Corporation Service Expansion

Governance and Management

Peer Trends

Orlando Utilities Commission (OUC) Appointed Five Member Commission

Set Rates and Operating Policies Pay “Franchise Fees” and “Taxes” to City City Council Involvement in Property and

Easement Issues Four Year Terms

Jacksonville Electric Authority (JEA) Seven Member Board of Directors

Public Meetings re Rates, Service Levels, Information, Purchasing Practices, etc.

City Council Liaison Four Year Terms

Peer Trends

Denver Water Board (DWB) Board of Water Commissioners (5)

Mayor-Appointed, Non City Council-Related Commission Appoints Manager who also

serves as Secretary Set Rates

Knoxville Utilities Board (KUB) Seven Commissioners

Mayor-Appointed, City Council Approved Commission Reports Semi-Annually to City

Council Minimal City Council Involvement Seven Year Terms

WhatIs the Future?

The Future?

Charter Review Joint Powers Authority? Joint Action Agency

Ownership Lease

Lease Back to municipality

What is the Future?

Status quo?

Enterprise consolidation?

Sell out?

Lease back?

Sale of Capital Assets

Strong Commission structure

How Do We Proceed?

Recommend that APPA coordinate a CEO-Level Task Force to:

Analyze the issues Create Business Model Options Provide assistance for moving to a

new business and governance paradigm

Got Ideas?