Defending an Investor-Owned Utility: Defeating a Utility Municipalization Effort and Preserving the Right to Serve

Challenge
An investor-owned utility serving a major Western community faced a growing municipalization movement driven by concerns about electric rates and dissatisfaction with the utility. Public power advocates, elected officials and community organizations promoted a government takeover of the electric system, and early polling showed strong support for ending the utility’s franchise. The effort posed a significant business threat with potential operational, financial and reputational consequences.

Strategy
Linhart partnered with utility leaders, legal counsel, government affairs professionals and community stakeholders to develop a long-term franchise protection communications strategy focused on rebuilding trust, correcting misinformation and demonstrating the value of continued investor-owned utility service.
Rather than simply opposing the takeover effort, the team helped position the utility as a collaborative community partner by addressing local priorities, highlighting the costs and risks of municipalization and offering a forward-looking alternative that included renewable energy, economic development investments and enhanced community support.

Execution
The campaign combined stakeholder engagement, earned media, editorial board outreach, executive thought leadership and third-party advocacy.
Key efforts included promoting independent analysis showing the financial risks of municipalization, securing influential editorial support, elevating perspectives from leaders in other communities that had pursued similar efforts, and helping communicate a compelling alternative vision focused on affordability, reliability and local investment.
Results
- Voters rejected municipalization by 76% to 24%, decisively preserving the utility’s franchise and right to serve customers.
- Reversed public sentiment from strong support for municipalization to a landslide election defeat of the proposal.
- Helped shift local editorial opinion from support of municipalization to opposition through sustained engagement and thought leadership.
- Generated extensive earned, owned and advocacy communications supporting community education and stakeholder engagement.
- Program contributed to earning the Edison Electric Institute Advocacy Excellence Award for its strategic approach and measurable impact.


