Milwaukee’s Public Transportation, Utilities and Waterways Review Board recently discussed forming a publicly-owned electric utility, with the proposed starting point of assuming control over We Energies’ infrastructure within city limits. The board has no power to recommend action by Milwaukee’s Common Council, but the hearing opened a discussion about the viability, risks, and potential benefits of a possible city-owned electric utility.

Background

Wisconsin’s publicly-owned utilities generate roughly 11% of the electricity produced in the state, often with lower electric rates than their investor-owned counterparts. Wisconsin law allows municipalities to acquire utilities’ property, but that option is largely untested.

Aldermen Alex Brower and Robert Bauman used the hearing to discuss the proposal, with Brower pitching the takeover as a means to shield residents from electrical rate increases. We Energies filed its most recent rate case in April, projecting a roughly 9.3% increase in customers’ electricity rates over the next two years.

Challenges and Concerns

The plan faces pushback from We Energies and the union representing its workers, who argue that residents benefit from the economies of scale that a large, well-established utility provides. The International Brotherhood of Electrical Workers (IBEW) Local 2150 business manager, James Meyer, stated that reliability is not created by changing who owns the utility, but rather by trained workers, proven emergency response systems, and the ability to move crews, equipment, and materials quickly when customers need help.

State law offers two routes for municipalities to assume control of utility infrastructure within their territory: seizing the facilities through eminent domain or negotiating a purchase agreement. Both options would require a referendum and a hearing before Wisconsin’s Public Service Commission to determine a fair price for We Energies’ property.

Original reporting: Wisconsin Watch — read the source article.