While many municipalization efforts have been initiated and subsequently resolved in the past 25 years, less than 10% of these efforts have resulted in a new municipal electric utility being established that remains in service today. The most recent municipalization occurred more than a decade ago, and that sale was achieved through a settlement as opposed to extensive litigation with the incumbent utility, which is contrary to the way in which municipalization initiatives have typically unfolded. In addition, following an acquisition, municipal electric utilities have experienced challenges often associated with new businesses, including several years of financial uncertainty, before the original objectives of the communities behind municipalization have been achieved. With this background in mind, it is important for communities considering municipalization to evaluate the time, costs, and risks – which include financial, operational, and governance issues – associated with taking over an existing utility’s assets and operations.

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