Investor-Owned Utility

Protecting a Utility’s Right to Serve – Again

Five years after voters rejected an effort to replace their investor-owned electric utility with a government-run system, municipalization re-emerged as a significant business and reputational risk. Linhart helped this mid-sized utility defend its franchise with a fact-based communications strategy focused on the costs, risks and complexities of a government takeover. When the polls closed, voters overwhelmingly rejected municipalization by an even wider margin, with approximately 78% voting to continue with the existing utility.

Challenge

The utility had successfully defeated a municipalization effort in 2020, but the issue resurfaced amid continued concerns about affordability and renewed calls for local control.

City Council ultimately placed a measure on the ballot asking voters whether the city should cancel its franchise agreement with the utility and pursue acquisition of the electric system if doing so was determined feasible.

The issue generated significant local attention, competing analyses and strong opinions about electric costs and the future of energy service in the community. The utility needed to communicate clearly about a complex issue while maintaining credibility and reinforcing its commitment to customers and the community.

Strategy

Linhart worked with utility leaders and its broader team to develop an issues management and earned media strategy centered on facts, transparency and customer impact.

The strategy focused on helping stakeholders understand what municipalization would require, including the costs of acquiring electric infrastructure, establishing and operating a new utility, and maintaining safe and reliable electric service.

It also helped elevate independent financial analysis examining the potential costs and customer impacts of a municipal takeover.

Execution

Linhart supported communications as the issue progressed from City Council discussions and feasibility studies to a special election.

Key efforts included:

Developing and refining clear, customer-focused messages about the municipalization process. Supporting proactive media outreach around independent financial analysis.
Preparing spokespeople for interviews and rapidly responding to evolving news coverage.
Communicating the potential costs, risks and operational complexities of establishing a new electric utility.
Providing strategic counsel around City Council activity, study releases and election-related developments.
Maintaining a consistent focus on reliability and continued community investment.

Results

The effort generated significant earned media coverage, including stories in the major daily paper highlighting the potential billion-dollar cost of a municipal takeover and findings by the city’s own consultant that municipalization was not financially feasible. Outcomes:

Voters rejected the municipalization measure by approximately 78% to 22%, preserving the utility’s ability to continue serving the community.
Successfully helped defend the utility’s franchise for the second time in five years.
Elevated independent analysis showing a municipal takeover could require more than $1 billion in financing and increase costs for customers.
The approach generated significant news coverage throughout the campaign, including headlines focused on the potential billion-dollar cost of a takeover and the ultimate finding that municipalization was financially infeasible.
Demonstrated the value of sustained reputation and issues management in protecting a utility’s long-term ability to serve its customers and community.

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