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Aren't the facts clear that municipal utilities in Iowa charge customers far less than incumbent utilities?
This is a case of using an average to mislead. Some have higher rates and some have lower. Most of these utilities were formed more than 25 years ago when things were different. Many built and paid off their own generating plants years ago, a far more expensive proposition today, in part because of environmental regulations. Others purchase surplus federal hydroelectric power, no longer available. Starting a utility today would be far more costly. A new utility would have to deal with price spikes and volatility. It is likely that electric rates will go up - not down. |
