Local Control
A public gas system offers a community local control over how gas is provided to homes and businesses. Public gas systems are regulated by their consumer-owners through locally elected governing boards or appointed officials. This form of governance takes place at the ballot box and by participation in city council and utility board meetings, at public hearings, citizen advisory committees, task forces and other public forums.
Local governing boards make a wide range of decisions, overseeing ordinary, day-to-day issues, as well as sweeping policies that affect community-wide services. These boards most often have authority over rates, the utility budget, labor contracts, salaries of key utility officials, municipal bonds, financial investments, and the right of eminent domain. In two States- Pennsylvania and Indiana- the public gas systems are also regulated by the state public service commission. The boards of public gas utilities are accountable to the citizen ratepayers they serve and removable by them, unlike private companies.
Competitive Costs
The very nature of a public gas system’s not-for-profit, cost-scrutinized, locally controlled operation ensures that rates will be competitive. Rates are not established by a public utility commission in the state capitol. Rates are established locally by citizen-controlled boards that operate in the sunshine. In addition, public gas systems do not face the pressure to pay dividends to often distant stockholders.
Local ownership creates greater local scrutiny. This converts into more efficient management and lower administrative costs.
Customer Service
Local control promotes outstanding customer service since the focus is always on service. Service quality is not compromised by mandates from another city which may result in staff reductions, closed service centers, or deferred maintenance.
Since it is part of the community, public gas systems maintain a close relationship with its customers. As a result, it is very successful in meeting the customers’ needs. Public gas systems can respond quickly to emergencies because local crews live in the community and are accountable to local officials (and their friends and neighbors). Repair crews that are local possess expert knowledge of the system which in turn allows the cause and solution to be identified quickly.
Economic Benefits
Public gas systems play a valuable role by helping their communities broaden the tax base to improve the local economy and job situation.
Public gas systems help to ensure that local dollars stay at home. They have a tendency of, whenever possible, doing business with local financial institutions and making purchases from local businesses. Salaries earned by local utility employees are likely to be spent in the community for housing, groceries and other supplies. Those payroll dollars multiply in value to the community as they are spent locally by businesses and their employees.
For more information, please contact Dave Schryver at 202-464-APGA or dschryver@apga.org.