Municipal Electric Utilities and Electric Co-ops

Municipally owned electric utilities (munis) and electric cooperatives (co-ops) may choose whether to participate in retail competition. If a muni or an electric co-op chooses to participate in the competitive marketplace, its retail customers can choose their electric provider. Once a muni or co-op decides to opt into retail competition, the decision cannot be reversed.

Customers should contact their electric cooperative or city utility for more information.

Questions & Answers about Cooperatives & Municipally Owned Utilities

Will I be able to choose my electric provider if my cooperative or municipally owned utility does not choose to compete?

No. You will continue to receive electric service from the co-op from which you are a member or the muni that serves your city.

How will I know?

It is likely that you will receive information in your electric bill. You can also call your co-op or muni and ask. The PUC maintains a list of munis and co-op that have opted in to the competitive retail electric market. Please visit our Electric Utility Directories

If my utility does not opt to compete, can it offer electric service to customers outside its service area?

No. A co-op or muni that chooses not to offer customer choice in its service area may not compete outside its PUC-certified retail service area.

Why are co-ops and munis treated differently from other utilities?

Customers of co-ops and munis have more control over the management of their utilities. Co-op customers are member-owners who elect the directors of the co-op. The directors set the policies for the operation of the co-op system. In a similar way, muni customers elect their city councils that operate the utility or appoint a board to do so. Boards of directors elected by the shareholders govern investor-owned utilities, and customers do not have a role in managing the utility.

Will co-ops and munis be regulated at all if they do not choose to compete?

If a co-op chooses not to compete, the PUC will only regulate co-ops for limited purposes, such as wholesale transmission rates, service area certification and certain reports. Effective Sept. 1, 1999, co-ops are otherwise deregulated. Munis have never been regulated by the PUC and will only become subject to limited supervision if they choose to compete.

Who will set rates for my co-op if the co-op does not compete?

Effective Sept. 1, 1999, all-co-ops are allowed to set their own rates. The governing board of your co-op will do this. Most co-ops have set their own rates for several years.

What about billing, deposits, disconnection, service quality and other customer service issues?

Effective Sept. 1, 1999, the PUC no longer regulates customer service for co-ops and munis. If you have problems or questions, call the manager or customer service office for your utility. If you are member of the co-op, you are also an owner and elect the directors.

What if I am not happy with my service?

The customers of public power providers such as co-ops and munis elect the people who run them. Co-op directors are usually elected at a membership meeting held once a year. Munis are run by the City Council or a board appointed by the council. If you are not happy with your service you can vote for new directors or if you are a city resident you can vote for new city council members.

Should I call the PUC if I am not happy with my service?

Effective Sept. 1, 1999, the PUC has no authority over customer service for co-ops. However, the law requires the PUC to forward any complaints about electric service to the co-op. The co-op must respond to the customer or retail electric provider and notify the PUC of its response. The PUC has never had any authority over munis.

How do I let my co-op or muni know that I favor competition?

Call or write to the members of the governing board of your cooperative or your City Council member and make your views known.

When must a co-op or muni choose to participate in customer choice?

These utilities may choose to participate in customer choice any time on or after January 1, 2002, by a resolution adopted by the board of directors or the governing body.

Can the decision to compete be reversed?

For co-ops, only if no customer of the cooperative has opted for choice within four years of the resolution’s adoption. For munis, the decision to enter into competition is irrevocable.

Last Updated: 11/25/03

* PDF files require the use of the Adobe Acrobat Reader. Down load a free copy here.