It exists to provide a public service to the residents and businesses of the community. The rates and services of a municipal utility are governed by the municipality itself, either through the city council or village board, or an appointed or elected Utility Commission. This is the most responsive and accessible form of regulation. The utility is governed by residents of the community who are customers of the utility and are thoroughly familiar with its operations and services. The customer can discuss the problem locally, with another member of the community, and be assured that the problem will be addressed.
Municipal utilities serve as an engine for economic development.
The excellent rates and quality service offered by municipal utilities are a big advantage for the community in attracting and retaining commercial and industrial customers. Municipal utilities also make payments in lieu of taxes to the city or village. These payments are similar to the tax payments that would be made by a private utility. On average, municipal utility rates are lower than those of other utilities. Lower rates means more dollars available to spend on other goods and services, which boosts the local economy.