Local governments are increasingly committing to ambitious, near-term renewable energy, efficiency, and resilience goals. However, the ability of these governments to implement projects and programs can be heavily influenced by the policies, regulations, and planning processes that govern their local energy markets. In regulated electricity markets in particular, utilities, regulators, and state energy offices often shape the timelines, costs, and feasibility of renewable energy procurement and program development.
Local governments and their communities have different types of electric utilities depending on their location, including:
- Investor-owned utilities, which are overseen by state regulatory commissions
- Municipal utilities, which are locally-owned and governed
- Electric cooperatives, which are member-owned and operate under distinct governance structures
Engagement with utilities, regulators, and relevant state offices should be treated as an ongoing part of local energy planning, not just a one-time action. Early and sustained engagement can help local governments better understand market constraints, identify viable project pathways, and align local priorities with broader energy system planning processes.
Local governments are also often large electricity customers and can represent community interests when discussing energy planning, customer programs, and future resource planning.
