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Public Power’s Positive Impact on their Communities For American Public Power Association’s 2005 Community & Economic Development Conference.

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Presentation on theme: "Public Power’s Positive Impact on their Communities For American Public Power Association’s 2005 Community & Economic Development Conference."— Presentation transcript:

1 Public Power’s Positive Impact on their Communities For American Public Power Association’s 2005 Community & Economic Development Conference

2 2 PRESENTER Steven E. Seger is a Principal with Seger Consulting Group, Inc. (www.segercg.com) He holds a Bachelor and a Master’s Degree in Business Administration. Steve’s work includes providing consultation services, writing assignments, and workshops/presentations to individual utilities and industry trade groups. His writing projects include industry manuals, articles, and serving as a publisher. A few examples of these projects include the following: APPA’s 2005 Community & Economic Development Manual (title to be determined), Balancing Collections Performance & Service Ratings: assessing the impact of policies at municipal and cooperative utilities; The Utility Credit & Collection Manual; “Assessing The Quality of Service Provided By Public Power Systems” (report for the American Public Power Association); American Gas Association’s “The Service Connection” (former publisher); and numerous articles for industry publications. Steve can be reached at stevenseger@segercg.com or 615.599.4448.stevenseger@segercg.com

3 3 Public Power’s Positive Impact Presentation Outline Economic Development Environmental Focus Power Supply Program Tapping Outside Resources

4 4 ECONOMIC DEVELOPMENT LONG ISLAND POWER AUTHORITY –1998 organized as public power utility –Revenues over $2.5 billion –More than 1.1 million customers –Formal economic development team

5 5 ECONOMIC DEVELOPMENT Uncle Wally’s Muffin Company outgrew facilities 33 employees faced job loss Community faced loss of tax revenues LIPA CHALLENGE: Company Relocation

6 6 ECONOMIC DEVELOPMENT –2002 - Expanded from 10,000 sf to 43,000 sf. –500 kW added load; $250,000 added revenues –LIPA 5 years’ zone discounts of $500,000. LIPA rebates of $73,548 for the installation of high efficiency freezers, variable speed drive compressors, and lighting. PUBLIC POWER’S IMPACT

7 7 ECONOMIC DEVELOPMENT –NYS loan of $1.1M for equipment, $48,000 grant for Industrial Effectiveness Program, and Empire Zone benefits. –Town of Brookhaven IDA financing of $3.5M for land and building, property tax phase-in for 10 years (approx. $50K per year saved), and sales tax & mortgage recording tax Incentives (valued at approx. $120,000). –KeySpan savings of $128,000 Pictured: Fred Avril, LIPA & Michael Petrucelli, Uncle Wally’s CFO

8 8 ECONOMIC DEVELOPMENT Redding Electric Utility –In California –86,000 customers –162 employees –2001 celebrated 80 years as public power utility Big League Dreams –Builds replicas of big league stadiums –Can be funded through public-private partnerships –Example impact: in one year a city hosted 35,000 out-of- town visitors gaining $13 million

9 9 ECONOMIC DEVELOPMENT City of Redding wanted to attract a Big League Dreams park Leveraged utility’s competencies in creative approaches towards power supply REU proposed use of ground source heat pump technologies to efficiently support operations

10 10 ECONOMIC DEVELOPMENT Replicas of Yankee, Fenway, and Wrigley stadiums built in Redding REU’s efforts exceeded the project plan’s expectations by more than 20% City now hosts games and tournaments year-round PUBLIC POWER’S IMPACT

11 11 ENVIRONMENTAL FOCUS $6 monthly buys 100% renewable energy $3 monthly buys 50% renewable energy SMUD matches 40% of monthly premiums with investments in renewable energy

12 12 ENVIRONMENTAL FOCUS RESIDENTIAL ACCOUNTS

13 13 ENVIRONMENTAL FOCUS COMMERCIAL ACCOUNTS

14 14 ENVIRONMENTAL FOCUS Through September 2004, approximately 500 million kWh of renewable energy have been distributed through the Greenergy ® program Use of renewable sources displaced the need for 75 gigawatt hours of fossil-fuel generation in one recent year PUBLIC POWER’S IMPACT

15 15 POWER SUPPLY PROGRAM $35 offered to recycle old refrigerators for newer, energy- efficient models In October 2004, the intent was to make the program permanent if 1,000 requests were received by year end Snohomish County Public Utility District

16 16 POWER SUPPLY PROGRAM October 25th, the first day of the program, 777 requests for refrigerator pick-up were received Potentially saved about 1,000 kilowatt hours annually, enough to power 80 homes Eliminated appliances using chlorofluorocarbons in the community PUBLIC POWER’S IMPACT

17 17 TAPPING OUTSIDE RESOURCES In the mid 1980’s, the citizens of Stuart, Nebraska found themselves and their community suffering from an all too common challenge faced by many small towns. The local economy had become stagnant. The number of young people graduating and leaving the area was growing, and the all-important sense of community pride that is the life-blood of small towns was steadily disappearing.

18 18 TAPPING OUTSIDE RESOURCES Stuart officials contacted the Nebraska Municipal Power Pool (NMPP) for assistance NMPP’s Corrinne Pederson had completed the Strategic Training & Resource Targeting (START) program through the University of Nebraska Stuart’s utility provided financial, administrative, and logistical support

19 19 TAPPING OUTSIDE RESOURCES The population in Stuart has grown approximately 5% during the past twenty years New businesses, such as a bed and breakfast, continue to open and existing businesses like a local museum have been able to grow as the town has grown economically PUBLIC POWER’S IMPACT Million $ Stuart’s valuation reflects the success of its efforts


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