HAWARDEN
ORANGE CITY
The Benefits of a Municipally Owned Utility
EXECUTIVE SUMMARY
The Municipal Power Advantage® report outlines the many benefits of operating a municipally owned electric utility. These benefits go well beyond keeping the lights on — some deliver measurable financial impacts, while others provide community value that’s harder to quantify but equally important.
For the City of Hawarden, its electric utility is more than just an energy provider — it’s a vital community asset. In fact, thanks to its public power business model, Hawarden Municipal Utilities (HMU) can deliver numerous and meaningful benefits to the customers it serves, including:
AFFORDABILITY: HMU’s residential customers enjoy electric rates up to 29% lower than the average rates of other regional rural electric cooperatives (RECs) and investor-owned utilities (IOUs). Additionally, HMU’s commercial customers benefit from electric rates up to 18% lower than the regional average, depending on their customer class. These rate advantages are due to lower wholesale power costs, tax-exempt financing and the utility’s not-for-profit status, which empowers HMU to reinvest in the local electric system and the community.
RELIABILITY: HMU consistently provides reliable power to its customers by proactively maintaining its operating and distribution systems and through continually investing in local infrastructure and advanced technology solutions.
LOCAL CONTROL AND SERVICE: HMU is community-owned and governed by the city council. Additionally, residents are employed to work at the utility, and they care deeply about their community and serve family, friends and neighbors every day.
ECONOMIC AND COMMUNITY IMPACT: HMU offers discounted rates for qualifying loads, provides energy-efficiency rebates, and extends utility services to attract and retain business. From 2022–2025, HMU’s annual cash transfers to the city’s general fund averaged more than $310,000, or 12.7% of its electric revenues. HMU also provided a zero-interest internal loan of $900,000 to help fund the city’s Main Street project completed in 2020. These transfers and loans are representative of the consistent and significant investments HMU makes in the community that would have otherwise been funded through sales tax, property tax, and other fees or bonding efforts.
In addition, HMU’s spending — through local employee salaries and the utility’s own purchases — helps keep money recirculating right here in Hawarden. Each dollar spent at local businesses supports jobs, strengthens the community and multiplies in value as it moves through the local economy. ECONOMIC
CITY FOUNDED 1887
INTRODUCTION
Hawarden Municipal Utilities (HMU) supplies power to residents and businesses in Hawarden.
As a public power utility, HMU prides itself on providing reliable electric service with affordable rates, local control and exceptional customer service. HMU also provides natural gas, water, wastewater, telecommunications and solid waste services to homes and businesses in the community.
HMU is one of approximately 2,000 community-owned electric utilities in the U.S. that serves more than 55 million Americans.
UTILITY ESTABLISHED 1894
2,700
HAWARDEN’S POPULATION
1,309
TOTAL ELECTRIC METERS
$ 2.44 M
UTILITY OPERATING REVENUE IN FY2025
From SMALL TOWNS to LARGE CITIES
1 in 7
CUSTOMERS IN THE U.S. ARE SERVED BY PUBLIC POWER
In a community served by a municipal utility, customers are the owners and have a voice in how the utility is operated. HMU is governed by the Hawarden City Council, which is comprised of six elected officials — five council members and the mayor. Acting together, the council enacts policy and governs issues relating to HMU and its departments.
POWER SUPPLY
HMU is committed to using renewable and carbon-free resources while maintaining reliable, cost-effective electricity for the community. The utility’s power supply is provided by Western Area Power Administration (WAPA) and Missouri River Energy Services (MRES). HMU has a power supply contract with WAPA through 2050 and a supplemental power supply contract with MRES that is secured through 2056.
A DIVERSE POWER SUPPLY
In 2024, WAPA supplied 83% of Hawarden’s energy needs with clean, reliable and renewable hydropower from dams on the Missouri River. The remaining 17% of the community’s energy needs were provided by MRES, which has intentionally and strategically developed a generation portfolio that reduces risk through diversity — both in fuel sources and geographic locations. MRES also focuses on environmental stewardship and carbon-free generation resources. The diverse mix of power supply resources results in reliable, affordable and environmentally sensitive electric service for Hawarden’s residents and businesses.
HAWARDEN′S 2024 POWER SUPPLY MIX
HMU actively participates in the Bright Energy Solutions® (BES) energyefficiency program offered by MRES, which provides cash rebates to residential and commercial customers who purchase new energy-efficient equipment. When this equipment is installed, it helps HMU reduce the wholesale demand and energy purchases from MRES, ultimately saving customers money.
From 2008 through 2024, HMU saved more than 2.17 million kWh, including 4.8% distribution line losses, and over 444 kilowatts (kW) in cumulative on-peak demand savings.
Based on the Environmental Protection Agency’s greenhouse gas calculator, this is the equivalent of the electricity used in more than 340 homes per year.
Data source: https://www.epa.gov/energy/ greenhouse-gas-equivalencies-calculator
HAWARDEN CUSTOMERS RECEIVED $ 145,00 0 IN BES REBATES
AFFORDABILITY
WHOLESALE POWER SAVINGS
Hawarden pays lower wholesale power supply and transmission costs compared to the average price per kilowatt-hour (kWh) of other regional wholesale suppliers.
As shown in the chart below, HMU’s blended power supply and transmission cost in 2025 was the lowest in the region at just 4.3 cents per kWh (green bar). In comparison, the average wholesale composite rate for 20 area power suppliers was 7.6 cents per kWh (blue bar), which is 3.3 cents higher or about 77% more than HMU’s blended wholesale rate.
WHOLESALE POWER SAVINGS
In 2025, HMU purchased more than 26.2 million kWh from WAPA and MRES. As a result, in 2025 the utility saved nearly $865,000 in power costs compared to the area’s wholesale average. This cost savings reflects the WAPA allocation and purchases from MRES, calculated by multiplying the total purchased kWh (26.2 million) by the 3.3-cent savings rate.
These significant savings reflect the direct financial benefits HMU receives from its healthy WAPA allocation, which accounts for more than 80% of Hawarden’s power year after year, and supplemental power purchases from MRES. Because Hawarden operates a not-for-profit electric utility, lower wholesale electric costs help HMU keep rates low for customers while also supporting investments in important community projects and initiatives.
ADDITIONAL ONE-TIME BENEFITS
In 2020, the MRES board of directors approved a one-time refund of 10% of its members’ power supply bills from August 2019 to July 2020. Hawarden received about $35,000 from the refund. In 2021, MRES secured a settlement from the Federal Energy Regulatory Commission, which gave HMU more than $120,000 as part of a transmission refund. The combined refunds of nearly $155,000 benefited all utility customers in the community.
CUSTOMER SAVINGS
In 2026, residential customers using an average of 1,000 kWh per month will save an estimated $42.67 on their electric bills compared to regional REC and IOU customers. Small commercial customers using an average of 3,000 kWh per month will save over $72 monthly, and larger commercial or industrial users, such as Hawarden Regional Healthcare’s local facility, can save upwards of $1,650 a month on electric bills.
TRANSFER PAYMENTS TO THE CITY’S GENERAL FUND
Each year, on average, HMU contributed more than $310,000 of its electric operating revenue as transfer payments to the city’s general fund from fiscal year 2022 to fiscal year 2025. This average transfer amount is about 12.7% of HMU’s annual electric operating revenue for the same period. The total value of HMU’s transfer payments during this four-year period was more than $1.24 million.
The cost of replacing all or a portion of the transfer payments would likely result in higher sales and property taxes collected by the city, or an increase in service fees.
ACCESS TO TAX-EXEMPT FINANCING
HMU can access tax-exempt financing, which typically carries lower interest rates that lead to reduced borrowing costs. Utilities often issue tax-exempt bonds to finance generation or large infrastructure projects, such as Hawarden’s new substation — investments that improve local reliability, safety and other community benefits.
In the unlikely event of a planned or emergency outage, HMU is prepared to communicate with its customers through a number of channels:
RELIABILITY
City of Hawarden
WEBSITE
cityofhawarden.com
TEXT ALERTS
BILLING INSERTS AND NEWSPAPER ADS
COUNCIL MEETINGS
LOCAL CABLE
CHANNEL 10
PHONE
Public power is reliable power, and HMU has a strong record of maintaining an electric system that operates continuously and efficiently. In fact, public power utilities such as HMU are among the most reliable in the industry, providing their customers with shorter power outages compared to those served by RECs and IOUs. Simply stated, local crews mean faster response times and shorter outages, and city crews are committed to high safety standards for themselves and their family, friends and neighbors.
Plus, HMU crews routinely maintain the distribution system to improve efficiency, enhance safety and increase the lifespan of equipment. Some of the annual maintenance tasks include:
X Monthly substation and switchgear building inspections
X Annual distribution and transmission inspections
X Proactive, multiple-phase conversion of vulnerable overhead circuits to underground, resulting in a reliable distribution system that is 98% underground
X Substation replacement project completed in 2025
X Annual tree trimming of city property
X Inspection and upkeep of redundant critical infrastructure and equipment
HMU also invests in advanced technology solutions that offer many benefits to the utility and its customers. These technologies help HMU proactively reduce risk, protect revenue, and increase reliability and security in the rapidly changing electric industry. For example, HMU participates in two customizable programs that are hosted and supported by MRES for operational efficiency, as well as an advanced system for customer information and billing.
X Advanced Metering Infrastructure (AMI) Program, hosted by MRES
f Ensures greater meter reading accuracy and efficiency
f Provides faster outage notification and restoration times
f Provides advanced power quality monitoring
X Coordinated Demand Response (CDR) Program, hosted by MRES
f Reduced demand charges, which keep customer rates low
f Managed load control as a cost-effective alternative to building new generation resources
X Customer information/billing system (CIS)
f Streamlines billing, service orders and customer data in one efficient system
f Provides real-time access to account information that helps utility staff respond to customers faster and more accurately
LOCAL CONTROL AND SERVICE
As a public power electric utility, HMU’s top priority is serving the local community. When citizens are concerned, they can communicate directly with city council members who live in the community and have Hawarden’s best interests in mind. Citizens are also welcomed and encouraged to attend public meetings and city council meetings.
Additionally, the utility employs local people who are part of the community and listen to the customers, and HMU offers convenient, local customer service with its payment office in Hawarden. HMU staff take pride in their work and know customers like family, friends and neighbors.
Beyond providing utility services, HMU consistently gives back to the community by donating time, resources and volunteer support for local projects and events. Here are some key examples of how HMU’s local service truly shines:
X Sets up temporary electric boxes and provides free power for vendors during Big Sioux River Days
X Installs and maintains all city streetlights
X Assists with lighting, scoreboards and general maintenance at city ballfields
X Assists with snow removal during winter months
EFFICIENT OPERATIONS AND MUTUAL AID
HMU’s headquarters and operations are conveniently located in the heart of the community. Plus, having a local workforce means HMU’s employees are extremely familiar with the utility’s service territory and can quickly identify and correct problems. For example, in the rare event of an outage, HMU’s local crews can arrive at the site quickly because they do not have to travel long distances to restore power.
More than 1,100 utilities, including HMU, are linked through a national mutual aid agreement. Mutual aid means utilities help each other in the event of a major storm or disaster. Utilities offering mutual aid may be reimbursed through the Federal Emergency Management Agency, or FEMA. Knowing that Hawarden has access to a network of aid in the event of a major incident is one more benefit to the community.
A prime example of this mutual aid network in action was during the flood of 2024 when HMU received assistance from other utilities. The quick, willing response shown by neighboring public power utilities resulted in enhanced safety for those affected by the flood, as well as quickly resolving electrical issues and restoring power where able throughout the community.
ECONOMIC AND COMMUNITY IMPACT
ECONOMIC IMPACT
HMU welcomes new customers to the community and supports the growth and expansion of existing businesses. HMU also works hard to contribute to vital community amenities and services that make Hawarden a great place to live, work and own a business.
For example, HMU’s staff compensation helps support the local economy by driving local spending and investment. In 2025, salaries tied directly to the electric utility totaled about $205,000, excluding benefits, and HMU spent more than $18,000 on local supplies and services. As a result, these dollars are recirculated multiple times throughout the community and contribute to Hawarden’s vibrant economy.
Additionally, the city’s revolving loan fund was started by the electric utility and provides low-interest loans to help local businesses start, upgrade, expand, create more jobs or, at times, keep their doors open. Recently, even zero-interest loans have been provided to businesses affected by the 2024 flood. Thanks to this community-focused program, more than $594,000 in low- or zero-interest loans have been provided to local businesses for fiscal years 2020-2024.
Other examples of HMU’s economic impact on the community include:
X Participates in the MRES Economic Development Rate Discount Program
X Provides energy-efficiency rebates for homes and businesses
X Extends utility services for potential development
X Funded a separate $900,000 zero-interest internal service loan to help repave Main Street and install new streetlights
X Supports local businesses by buying local and servicing vehicles and equipment at local repair shops
COMMUNITY INVOLVEMENT
HMU is actively involved in community development, sponsoring local events, programs, projects and services that make a positive impact and showcase the value of the local public power utility.
In addition to providing reliable, affordable energy, here are additional examples of how HMU has engaged the community in recent years:
X Cost-shares Smart Energy Squad educational kits to fifth-grade students and teachers, a program that has reached more than 128 local students over the last few years
X Hangs welcome banners on Main Street three times each year
X Regularly sponsors Hawarden Chamber of Commerce and the local hospital through events and banquets
X Annually hangs Christmas lights and other decorations on Main Street and at Calliope Village
X Enters vehicles in Big Sioux River Days Parade each summer and Parade of Lights during the holidays
X Purchased LED light bulbs to distribute free to customers
X Completed the downtown lighting project
X Installed new lighting at community dog park
PARTNERING WITH MISSOURI RIVER ENERGY SERVICES
BUILDING SOMETHING GOOD TOGETHER
Along with 60 other public power utilities, HMU can reap the benefits of being an MRES member. This includes a diverse power supply, transmission planning and many other energy-related services.
Shared costs and mutual support make the effort more manageable and cost-effective for all MRES members. Other MRES member benefits include:
X Economies of scale
X Aligned values and viewpoints to meet future challenges together
X Mutually beneficial programs and opt-in services
X Reduced risks
KEY SERVICES OFFERED BY MRES
X Power supply and transmission planning
X State and federal legislative advocacy and regulatory compliance
X Communications and marketing
X Customer information/billing system (CIS) support
X Load control and advanced metering services support
X Energy-efficiency and electrification programs
X Cybersecurity assessments
X Rate studies
X Scholarships and school education programs
X Community co-sponsorship program
X Proactive maintenance services
X Education and training
X Leadership and supervisor development
X Stategic planning
X Workforce development and succession planning
NORTH DAKOTA
CONCLUSION
This report reinforces the advantages of a municipally owned electric system and outlines the tremendous value of the financial and community benefits provided by the utility. As part of the public power community, HMU customers can count on:
X Affordable rates
X Reliable electric service
X A diverse power supply portfolio
X Governance that includes elected local citizens who are also customers
X Local decisions that reflect community values
X Financial contributions and in-kind benefits that support the city and its residents
X Economic development support
X Quick emergency response because crews live in the Hawarden area
X Municipal utilities working together for shared success
From delivering affordable, reliable power to investing in the community in measurable ways, the locally owned, locally controlled utility plays a valuable role in making Hawarden a place where families thrive and businesses grow — a community that people are proud to call home.
