About Public Power
Operated by local governments
ABOUT PUBLIC POWER
About public
power in Colorado
What do 49 million people across the country have in common? Their electric utility is community-owned.
Some of the nation's largest cities – Los Angeles, San Antonio, Seattle and Orlando – operate municipally owned electric utilities, but many public power communities are small with their utilities serving 3,000 or fewer customers. Learn more about public power by visiting the American Public Power Association website.
Public power utilities are like our fire and police departments, public schools, and libraries:
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Community-owned
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Division of local government
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Elected or appointed boards –
mayors, council members, citizens
Public power utilities are operated by local governments to provide communities with reliable, responsive, not-for-profit electric service.
Municipal utilities are operated by people who live and work in the same community. Locally elected or appointed citizens act as the board of directors for municipal systems, and aided by professional staff, they make policy and operational decisions that are in the best interests of their utilities and communities.
Public power gives back! Public power utilities reinvest 33% more back to the community than private utilities through taxes, fees, and special services. Public power utilities employ 93,000 people nationwide and generate $58 billion annually. By supporting local businesses and reinvesting in communities, public power strengthens local economies and fosters a sustainable future.
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Local jobs
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New businesses to the community
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Buy local
In Colorado
There are 28 community-owned electric utilities across the state – from small towns to large cities – that provide power to over 507,000 electric customers or about 18 percent of Colorado's electricity consumers. In 2024, municipally owned utilities provided over 9,000,000 MWh (megawatt hours) of electricity to residents in our 28 communities.
Three types of electric utilities:
Federal Hydro Power: The Western Area Power Administration (WAPA) provides clean, noncarbon emitting hydroelectricity from federal dams across the Western U.S. to Colorado’s municipally owned utilities and rural electric cooperatives. About 24% of the power supplied to the average Colorado municipally owned utility comes from WAPA.
Public power communities have the lowest average electric bills in Colorado. CAMU conducts a semi-annual survey of Colorado’s distribution electric utilities to compare customers’ electric bills in four categories. Access the latest survey results [hyperlink].
Municipally owned utilities are self-supporting (not funded through municipal taxes), and as such, they qualify as enterprises under the Colorado Constitution. The local city councils or utility boards set the rates for their communities' utilities. The rates cover the costs and expenses of providing the electric service including, generation and purchase power costs, electric transmission and distribution costs, capital expenses, debt service and operating costs. Any remaining revenues, after expenses, are reinvested into the community in a variety of ways.
LEADERSHIP
Board of directors
The nation’s first commercial electric distribution system began operations in Appleton, Wisconsin in 1882. This and Thomas Edison’s Pearl Street Station, which began commercial operations in New York City three weeks later, were direct current systems serving less than a square mile each. At the time Colorado had been a state for only six years and had a population of 194,327.1 In 1882 there were 53 incorporated cities within Colorado.
Colorado adopted its first general municipal enabling statutes during the 1870s. From the outset, municipalities were authorized to engage in water distribution services. The statutes of 1887 authorized the provision of municipal gas utility services. The municipal code was amended again in 1893 to authorize the provision of municipal electric service. In 1893 the population of Colorado had increased to 412,1982 and there existed 107 incorporated cities. The distribution of electric current had been proven feasible only ten years before and the economics of such systems were still in question. Few electric utility systems were in operation, and these tended to be embedded within large population centers.
The 1893 statute placed the authority to regulate the
operations and rates charged by municipal electric systems with the local government. The law required that the rates charged be cost based in that they must “be sufficient to pay the expenses of running, repairing and operating such works.” The statute further required that “gas should be charged for by the foot and electric lights by the light.” Later this language was changed so that both gas and electricity were charged according to “use” (as distinguished from water). These guidelines were established a full 20 years before the passage of the Public Utilities Law and the creation of the Public Utilities Commission.
In 1902, by a vote of the people, Colorado adopted the concept of home rule for municipalities. The home rule provisions were included within the Colorado Constitution as Article XX.3 The home rule amendment contains an explicit authorization allowing home rule municipalities to offer electric utility service both within and outside municipal limits.
APPA
American Public Power Association