Utility 101
The basics and advantages of publicly owned energy utilities and water agencies.
What is a Publicly Owned Utility?
California’s Publicly Owned Utilities
FACTS & FIGURESCalifornia’s Publicly Owned Energy Utilities and Water Agencies
Founded 1933
CMUA has been serving California for 90+ years.
80+ Members
CMUA represents more than 80 publicly owned utilities in California.
Representation
Advocating for publicly owned utilities across California.
33,000+ Californians
Directly employed by CMUA members.
Cost-Based
Our members charge only the actual cost of service, protected by Propositions 26 and 218.
Back to Communities
POUs reinvest $500M (5.1% of revenues) annually back into local communities.
California’s Publicly Owned Energy Utilities (POUs)
10 Million
Powering California
POUs serve 25% of California’s electric load, providing power to nearly 10 million customers statewide.
17% Lower
Lower Electric Rates
On average, POU rates are 17% lower than investor-owned utilities, and often deliver even greater savings.
60% by 2030
Clean Energy Leader
CMUA members are working toward 60% renewable energy by 2030 and 100% zero-carbon power by 2045.
99%
Union Jobs
99.3% of energy load is served by represented employees, primarily IBEW workers.
3x Faster
Faster Response
POUs respond to outages 3x faster than investor-owned utilities.
67% Shorter
Shorter Outages
POU outages are on average 67% shorter than IOU outages.
California’s Publicly Owned Water and Wastewater Agencies
30 Million
Californians Served by CMUA Members
Provide water & wastewater service to 30 million people — 75% of California’s population.
85% Water Systems
Locally Governed
Over 85% of California water systems are publicly owned and operated by local governments.
12% Energy
Water-Energy Connection
12% of California’s energy is used for water distribution, treatment, and end use.
25% Water Savings
Proven Conservation
During the 2016–2020 drought, publicly owned water agencies helped reduce community water use by ~25%.
400+
Public Agencies
Over 400 public agencies manage most of California’s water, handling 90% of deliveries, with significant local investment ($25B+ yearly) in infrastructure and new supplies (recycling, desalination).
Less than $0.01
Per Gallon of Water
A gallon of reliable California water often costs less than a penny.
10 Things Every Utility Customer Should Know
About Their Publicly Owned Utilities & Water Agencies
1
Publicly owned electric and gas utilities and water and wastewater agencies offer something better for communities and businesses – including lower costs, local accountability and higher customer satisfaction.
2
Publicly owned electric utilities and water agencies are consistently the most affordable water and energy option for Californians, saving residents and businesses millions of dollars every year.
Rate comparison information consistently shows publicly owned electric utilities are, on average, at least 17% lower in cost than other alternatives, and often the savings are even higher. (Source: CMUA “2023 California IOU rate Forecast and Bill Comparison Study”) A gallon of reliable California water often costs less than a penny.
3
Publicly owned electric utilities and water agencies understand local communities and their needs because they are locally based.
The driving principle of these utilities is to provide affordable, reliable service, and do what’s best for their communities. Publicly owned electric utilities and water agencies offer democratic participation – the customers have a voice. Decisions about rates, investments, and priorities are made for and by the communities served, through elected or publicly accountable boards comprised of people from the community (not far-away shareholders in distant boardrooms) and reflect local values, needs and demographics.
4
Publicly owned electric utilities and water agencies historically, and repeatedly, deliver superior reliability.
According to the American Public Power Association, publicly owned electric utilities across the U.S. show superior reliability compared to for-profit utilities. If there is an outage, being locally based means these utilities are able, on average, to respond to outages three times faster than privately owned utilities, and outages are 67% shorter.
5
Publicly owned electric utilities and water agencies are not-for-profit entities that put people, service and community first.
As not-for-profits, publicly owned electric utilities and water agencies only have a duty to their customers, and exist only to ensure there is a reliable, affordable, and safe supply of water and power – not to make a profit. By law, they can only charge the actual cost of providing service.
6
Publicly owned electric utilities and water agencies reinvest the rates paid by customers right back into their communities.
To maintain reliable service, improve efficiency, upgrade infrastructure, and keep rates as low as possible.
7
Publicly owned electric utilities and water agencies are an economic engine for their communities, providing jobs, fueling local economies, and driving innovation that improves quality of life.
They power homes, schools, hospitals and businesses and provide safe, reliable water, both of which drive economic growth and job creation.
8
Publicly owned electric utilities and water agencies are leaders in sustainability, actively supporting policies and investing in efforts that support sustainable development, management, and conservation of natural resources.
9
Publicly owned electric utilities and water agencies are on the forefront of best practices in wildfire safety, prevention and response, equitable clean energy transition/electrification, water efficiency, and environmental stewardship.
10
The California Municipal Utilities Association (CMUA) represents California’s customers and taxpayers in water and energy discussions, because publicly owned electric utilities and water agencies are the customers and taxpayers.
CMUA advocates for the interests of California’s publicly owned electric, water and wastewater utilities – facilities that are “for the people” and put people, communities, and service first.
Working Together to Optimize the Present & Future of California Water
Advantages of the Publicly Owned Municipal Utility Model
Publicly owned power utilities and water agencies offer something better for communities, from lower costs and better service to local control, local accountability, and local benefits.
How Rates Are Set
Rates charged by not-for-profit publicly owned electric utilities and water agencies are carefully developed through a public process subject to local oversight by customers and adopted by local boards that are publicly accountable to their communities and state law — specifically, Proposition 218 and Proposition 26. These laws mandate that these utilities can only charge the cost of providing service. This structure protects customers, ensures financial transparency and prioritizes affordability, safety and sustainability over profit.