By Mark Fritsch, General Manager
It’s been two years since I joined OPU, and I was asked the other day about my first impressions versus now, and how we compare to investor-owned utilities.
My first impressions were that OPU had dedicated employees, financial strength and a great reputation with its customers. I haven’t seen anything since to change my opinion.
Employee dedication to doing a great job is not only evident from the number of customers calling and sending letters thanking us, but from the weekly things our employees are proud of doing for them, such as notifying customers of home flooding, high water usage that they didn’t know about, working extended hours to get the lights back on from a storm, and keeping and attracting business to Owatonna.
The financial strength is evident in our ability to withstand the 2010 flood damage and repurpose our power plant to restore business operations without raising rates.
I didn’t realize how good the electric reliability was until I saw comparative numbers with other utilities. It is much higher due to investments in infrastructure and tree trimming. If OPU trimmed trees like other utilities, the storm we had last May 2nd would have resulting in customers out of service for several days instead of several hours.
My last impression was that I would enjoy working with OPU’s employees and this community. My wife will tell you she has lost track of how many times I’ve told her that this is the best job I’ve had.
I need to preface my answer to the investor-owned versus municipal utility question by stating that I have over 33 years in the investor-owned utility world. I know OPU does a much better job meeting the needs of its customers than an investor-owned utility. As a municipal utility, OPU is a public service institution which answers to its customers rather than to shareholders. Success is measured by how much money stays within the community through lower rates, energy conservation programs, and utility services contributed to the city rather than by how much money goes out as profit to stockholders across the country and around the world.
Here are a few of the benefits that public ownership and control provide:
- Responsiveness to customer concerns – every citizen is an owner with a direct say in policies
- Emphasis on long-term community goals
- Quick response from crews located in the community
- Not-for-profit status – lower costs and no split allegiance between customers and stockholders
- Great portion of revenues stay in community
- Utility purchases from local establishments, including use of local financial institutions
- Local Employment
- Efficiency through integrated utility operations (electric, water, natural gas)
- Local management and operations bring added community leadership for innovation and development
- Recognized commitment to conservation, safety and the environment
- Local control over special programs such as energy conservation
- Local control that allows matching local resources to local needs
- No economic bias toward high cost, capital intensive techniques or technologies
- Primary mission of providing affordable, reliable service over maximizing profit
- It’s easy to see that I’m very impressed with and blessed to work for your municipal utility. I’m also looking forward to the next two years as we move into our repurposed facility and implement the many improvements and efficiencies our employees are working on.