We Power DC’s feasibility study and path towards municipalization.
Mapping out the road to giving Washington DC its own public power utility.
Step 1 - Build a Grassroots Campaign
Like most public power campaigns, this one started out spearheaded by an individual group. Since launching We Power DC, we have been focused on understanding our community’s pain points and building support with our neighbors.
Today, we are communicating the benefits of public power and the need for change with our utility bills and service. Our aim is to educate the public on the option for publicly owned power while advocating the City Council and Mayor to conduct a feasibility study.
Step 2 - Conduct a Feasibility Study
Feasibility studies are designed to answer the initial question: is forming a public power utility economically feasible? This analysis will examine the capital and operating costs for the new utility, and will factor in various alternatives for power supply. The study should also identify a range of expected savings, benefits, risks, and recommended next steps.
With mayoral approval, the City Council can hire an independent firm to conduct this study identifying the nitty gritty of replacing Pepco.
Step 3 - Legal Analysis & Valuation
During the feasibility study, experts will review DC’s franchise and contracts with Pepco. This is important for a clean and amenable transition.
Specifics of the feasibility study should also determine the value of the electric distribution system facilities and property that would be acquired from Pepco. This includes taking into account the book value of the infrastructure along with its age, wear and tear, and projected use-life.
Step 4 - Preparing for New Operations
After confirmation by the City Council for Washington DC’s own public utility, management changes need to be made. This includes issuing bonds for the purchase and/or construction of facilities; completing power supply and transmission arrangements; planning for the severance of the system from the incumbent utility; developing an organizational plan; setting up the new governing body and recruiting a utility manager; planning for materials, equipment, and supplies; and commencing operations.
The city may decide to contract out some of these functions to a firm experienced in electric utility operations to do the job in the short-run until the new utility is ready to run independently. The contracted electricity provider is accountable to city officials for its performance.