Frequently Asked Questions
What is Public Power?
Public Power's first light in North Carolina brightened night skies
in Statesville on a chilly February evening in 1889, when a local
resident flipped the switch on the state's first municipally owned
utility. Since then, more than 70 other NC cities, towns and university
systems have joined Statesville in the Public Power industry. To them,
owning their own power system means local control, fast, neighborly
service and economic benefits for their residents.
To maximize their value to their communities and customers, 64 of
those cities formed a not-for-profit organization in 1965 that would
protect the interests of Public Power. That group was eventually named
ElectriCities of North Carolina, Inc.
ElectriCities has 99 members representing Public Power communities
in North Carolina, South Carolina and Virginia that distribute
electricity. 51 of them are also participants in either North Carolina
Municipal Power Agency Number 1 or North Carolina Eastern Municipal
Power Agency, which also generate the power supplied to over 400,000
customers.
Public Power communities have a long history of service. The average
ElectriCities member has more than 75 years of experience operating an
electric distribution system; many are nearing 100 years of service.
Public Power is a national concept, with approximately 2,000
municipally owned electric utilities serving more than 35 million
Americans. Most of these utilities serve small communities with
populations between 10,000 and four million. However, some large
metropolitan areas — Los Angeles, Memphis and San Antonio — are also
Public Power communities.
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Why be a Public Power community?
Revenue from electricity sales in Public Power communities goes
toward operation of the system, and then to improving community
services and quality of life for residents. A municipally owned utility
does not have to pay a dividend to shareholders. In a Public Power
community, "stockholders" are all those who benefit from municipal
services and the citizens of the community.
Customers have a voice in the activities of their electric systems.
Since each municipality sets its own policies, customers can speak out
on electric power issues at their city and town council meetings.
Public Power is the public's business.
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What are the Power Agencies?
North Carolina has two municipal Power Agencies: North Carolina
Municipal Power Agency Number 1 (NCMPA1) and the North Carolina Eastern
Municipal Power Agency (NCEMPA).
In the Piedmont and foothills region of North Carolina, 19
municipalities are members of NCMPA1. The agency has 75 percent
ownership interest in Catawba Nuclear Station Unit 2, located in York
County, S.C., which is operated by Duke Power. It also has an agreement
with Duke that provides for electric power via McGuire Nuclear Station
and Catawba Unit 1 should Catawba 2 be unavailable for service.
In the eastern part of the state, 32 cities and towns are members of
NCEMPA.
Both agencies purchase supplemental power above their ownership
allotment as they need it, usually from investor-owned utilities and
federally owned hydro-electric systems.
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How do the participants receive electric power?
The Power Agencies' ownership interests in the generating facilities,
as well as contractual arrangements with Duke and CP&L, ensure that
the power needs of participants will be met. Investor-owned utilities
are paid a fee to be responsible for constructing, maintaining, fueling
and managing the generating facilities, and send power to the
municipalities over high-voltage transmission lines. Once the power
reaches a city or town, the municipality distributes it to its
customers.
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