The Michigan Municipal Electric Association, a state association for municipal electric utilities where Lowell Light & Power is a member, commissioned a unique report to measure the real financial returns from reliability and residential rates for Public Power utilities across Michigan called the Michigan Public Power Impact Report. Through this report, LL&P is able to quantify the savings for Lowell residents and businesses.
Measuring public power’s value is essential because it transforms assumptions into evidence—ensuring community-owned utilities truly serve residents, not hidden interests. Drawing from public management principles, performance metrics enable greater accountability, efficiency, equity, and trust. In practice, public power measures reliability (e.g., tracking outage minutes), cost-effectiveness (comparing rates against private utilities), and community reinvestment (such as local job creation and revenue returned to governments). These insights guide evidence-based decisions, highlight areas for improvement, and reinforce transparent governance—essential for maintaining public confidence and ensuring resources are used equitably and effectively.
COMMUNITY
Local Employment
Local employment in public power utilities isn’t just about jobs—it’s a powerful engine for community resilience and investment. By hiring hometown lineworkers, engineers, and service staff, public power not only ensures greater reliability but also keeps paychecks circulating locally—typically reinvesting earnings four to five times within the community. Total community economic impact through local employment is $205,739.
Community Sponsorships & City Shared Service
Public power utilities strengthen communities through community sponsorships—funding local events, nonprofits, and economic development initiatives—and by embracing city shared services, which reduce costs, increase efficiency, and streamline support for local governments. Together, these efforts foster civic pride, enhance resource stewardship, and deliver reliable, cost-effective services right where residents live. Total community economic impact through community sponsorships and city shared services is $44,268.
RELIABILITY
Outage Avoidance & Quicker Restoration
Public power’s resilient infrastructure—rooted in proactive tree trimming, smart grid tech, and outage-management systems—results in fewer and shorter power interruptions. The average Lowell Light & Power customer experiences 48 outage minutes per year while the nearest investor-owned utility customer experiences 176 outage minutes a year on average, not including major weather events like ice storms. That’s 128 fewer minutes of downtime on average per year. The cost of power outages can include spoiled fridge contents or frozen pipes for residential customers, or lost productivity and sales for business customers—meaning reliability has hidden value. That translates to $260 average annual savings per customer and $807,195 total annual savings for Lowell through outage avoidance and quicker restoration.
Local Control & Decisions
With public power, day‑to‑day operational policies—like rate‑setting, system upgrades, reliability standards, and sustainability initiatives—are shaped right here at home by locally elected officials or utility boards. This ensures transparency (via open meetings), swift responsiveness to community priorities, and investments that truly benefit residents—not distant shareholders. Community benefits through local control and decision-making are priceless.
SAVINGS
Residential Rate Savings
Average rate savings for LL&P residential customers is 27% less compared to the nearest investor-owned utility— a direct benefit of community‑owned, not‑for‑profit operation that puts value back into local residents’ pockets. That converts to $404 average annual savings per residential customer and $858,547 in total annual community savings for Lowell residents.
General Fund Distribution
Community-owned utilities typically contribute an amount of electric operating revenues directly back to local and state governments through taxes, in‑lieu payments, general fund transfers, and services—reinforcing community finances. Total Lowell community economic savings through General Fund Distribution is $428,182.
Based on all these community benefits, the annual economic value to the Lowell community is $2.3 Million! Since 1896, Lowell Light & Power has been a cornerstone of the Lowell community, committed to enhancing local well-being through steadfast service, dependable infrastructure, and financial prudence. This Community Impact Report highlights our enduring dedication to fostering community connections, ensuring reliable services, and delivering cost-effective solutions. Over the years, our initiatives have not only strengthened the fabric of our community but also provided tangible savings and benefits to residents. As we reflect on our journey, this report underscores the positive outcomes of our long-standing commitment to the people of Lowell.
Read about the full Michigan Public Power Impact Report HERE
*Report findings are based on 2023 data