Investor-owned utility rates are established to include profits paid to individuals who hold stock in the company. Since profits are not paid to investors, public power companies can offer lower rates. Since the local public power company is locally controlled, decisions about policies such as rates are made by people who play a vital role in the community. The city council sets policies for many utilities, while other utilities have a separately appointed or elected electric utility board that governs utility policies. Decisions of large, investor-owned utilities are often made by people hundreds of miles away.
Local control helps ensure that the utility responds to community needs.
Public power utilities help to keep the local economy strong, because the utility revenues stay in the community. And utility policies promote business participation and investment in the community.