Editing Municipalization (section)

==Examples==
{{Prose|section|date=September 2021}}
While municipalization is quite rare in the United States over the past few decades ("of these 900 municipal-owned utility firms, only 2 percent have completed municipalization since 1990")<ref name=":0" /> there are a few key, and recent, examples that are often cited.

===Long Island, New York===
Basic Information: "The [[Long Island Power Authority]] territory consists of New York's [[Nassau County, New York|Nassau]] and [[Suffolk County, New York|Suffolk]] counties and part of [[Queens, New York City]], including the [[JFK international airport|JFK International Airport]]."<ref name=":0" />

Key motivating factors: The effort to municipalize [[Long Island|Long Island's]] electricity was primarily motivated by rising (and high) prices and bad reliability.

Timeline of Significant Events:

1980s: The investor-owned [[Long Island Lighting Company|Long Island Lighting Company (LILCO)]] faces near bankruptcy catalyzing the effort to municipalize led by then Governor [[Mario Cuomo]]. Despite public support for municipalization the effort faced strong opposition from LILCO.<ref name=":0" />

1985: The Long Island Power Authority Act passes which established Long Island Power Authority (LIPA). LIPA was charged with taking over the [[Shoreham Nuclear Power Plant|Shoreham plant]] and its debts, as well as controlling electricity costs.<ref name=":0" />

1998: Governor [[George Pataki]] led the effort to take over LILCO's entire system due to customers still facing high utility prices. The takeover was financed through public bond offerings and over the next few years customers experienced reduced rate.<ref name=":0" />

2012: [[Hurricane Sandy]] hits Long Island significantly damaging the power system and causing extensive outages. LIPA faces intense criticism for its response.<ref name=":0" />

2013: In an effort led by Governor [[Andrew Cuomo]], the LIPA Reform Act of 2013 which reorganized LIPA, placing the day-to‐day operations under [[PSEG Energy Holdings|PSEG]] was approved by the state legislature.<ref name=":0" />

Results: The effort has been largely successful given that customer approval has improved to over 90 percent satisfaction level and LIPA's rates are no longer the highest in the New York Metro Area. This reflects that the key motivating factors were addressed.

===Boulder, Colorado===
Key Motivating Factors: The effort in [[Boulder, Colorado|Boulder]] were motivated by having greater autonomy and customer choice so that the city could more directly meet its Clean Energy goals. This effort was primarily motivated by sustainability concerns.

Timeline of Significant Events:

2002: The Boulder City Council passed Resolution 906, committing the community to reducing its greenhouse gas emissions to the target established by the [[Kyoto Protocol]].<ref>{{Cite news|url=http://empowerourfuture.org/boulder-municipalization-a-history/|title=Boulder Municipalization History|work=Empower Our Future|access-date=2018-03-07|language=en-US}}</ref>

2005: In response to having difficulty meeting the goals of Resolution 906 and wanting more energy decision-making control the city created a task force to explore municipalization as an option for faster innovation capacity.<ref name=":0" />

2005: "The feasibility study found that munipalization would increase renewable energy, reduce greenhouse gases, maintain reliability, and reduce rates for customers. The study also found that this would make the utilities more aligned with the needs of the community and would allow any excess energy revenue to be reinvested in Boulder." The study was, however, all predictive and acknowledged many uncertainties.<ref name=":0" />

2017: "The City of Boulder, along with 14 other parties, signed a stipulation filed with the [[Public utilities commission|Public Utilities Commission]], which gave the commission the opportunity to evaluate a Colorado Energy Plan Portfolio during the pending Electric Resource Plan proceeding."<ref name=":0" />

Results: The municipalization effort's most significant expenses have been from delays and regulatory roadblocks. In the last four years, Boulder has been involved in legal proceedings with [[Xcel Energy|Xcel]] at the local and state levels, and courts have ruled both in favor of and against municipalization.<ref name=":0" /> As of 2/26/18 Boulder has "two agreements done" — the interim cost agreement and the easement agreement — and are "working on a final agreement on costs" in the process of the city's negotiations with Xcel Energy.<ref>{{Cite web|url=https://www.energy.gov/savings/city-boulder-climate-action-plan-fund|title=City of Boulder - Climate Action Plan Fund|publisher=United States Department of Energy|access-date=2018-03-07}}</ref>

===San Francisco===
Key Motivating Factors: The [[California energy crisis]] spiked public support for publicly owned and controlled municipal utilities.<ref name=":3">{{Cite journal|date=October 2002|title=The Economics of Electric System Municipalization|url=https://sites.hks.harvard.edu/hepg/Papers/Bay.Area.Forum_Econ.analy.Municipalization_10-02.pdf|journal=Bay Area Economic Forum}}</ref>

Timeline of Significant Events:

1990s: Angered by power outages and rate hikes San Franciscans engaged in various attempts to municipalize their electricity.<ref name=":2" />

2001: Two ballot propositions which would have enabled the city to municipalize its electricity faced strong opposition from the incumbent utilities. Both ballot propositions were defeated, one by a narrow margin of 500 votes.<ref name=":2" />

2002: Advocates tried ballot measures once more but were outspent by the incumbent utilities, which spent over $2 million.<ref name=":2" />

Results: This is a key example of a place where several attempts to municipalize have failed giving evidence to the importance of the transaction costs associated with municipalization.