ABSTRACT
This chapter introduces the municipal ownership movement and the theory of natural monopolies. It presents several case studies to enhance the reader’s comprehension and application of each. Publicly owned electrical utilities first appeared at the local levels of government during the years 1881 and 1882 as part of the municipal ownership movement. Municipal electric utilities may be defined as “those public power providers that are owned and operated by cities, towns, and counties”. Municipally owned electrical utilities must conform to federal, state, and local laws. In Tennessee, the Municipal Electric Plant Law of 1935 provides the authority to “set up, operate, issue bonds” for electric plants. The law states that an electric plant may be managed by the city’s governing body or by a board. If a board is established, the mayor may appoint individuals to serve on the board with the approval of the city’s governing body.
