The reality is that it will allow more consumers to participate and gain the benefits of competition. Existence of this local government option gives consumers more, and not less choice, as well as leverage they would not have otherwise. For a market to function effectively, it must be balanced between consumer and supplier interests. Options that provide consumers with statutory powers, leverage and autonomy are critical to the ultimate standards and benefits that will emerge from a restructured industry. The loss of consumers' autonomy and their traditional foundation of authority will mean that market suppliers have an opportunity to dominate.
Experience offers cause for hope.
Local governments are durable institutions and have a proven track record of service in the electric industry. For more than a century, public power systems have provided aggregated service to consumers in their communities at prices that average 15 percent less than those of investor-owned utilities. An increasing number of communities have become interested in these options, but legislation at the state level will need to be watched closely for restructuring provisions that could undermine consumer and community choice. In many states, local governments have yet to take their place at the table in these discussions. The next few years will tell what may become of this sleeping giant.