STAPLES
The Benefits of a Municipally Owned Utility
EXECUTIVE SUMMARY
The Municipal Power Advantage® (MPA) 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 is harder to quantify but equally important.
For the City of Staples (city), the electric utility is a vital community asset. The public power business model enables the city to provide numerous benefits to the customers it serves, including:
AFFORDABILITY: Electric customers pay electric rates up to 3% lower than the average rates of other regional rural electric cooperatives (RECs) and investor-owned utilities (IOUs), depending on their customer class. This is due to lower wholesale power costs, tax-exempt financing and the utility’s not-for-profit status, which allows the city to reinvest in the local electric system and the community.
From 2022-2025, transfer payments to the city totaled more than $625,000. These payments help pay for expenses and projects typically funded through property tax and other fees.
RELIABILITY: The city consistently provides a high level of reliability to its customers. Based on nationally recognized measurements, customers can expect power over 99.99% of the time. In recognition of the reliable electric service, the American Public Power Association (APPA) awarded the city the Certificate of Excellence in Reliability in 2025 for its exceptional reliability from 2020-2024.
LOCAL CONTROL AND SERVICE: The city electric department is community-owned and governed by the City Council — the customers are its owners. Local citizens are employed to work at the utility and operate the system. The staff serve customers who are also family, friends and neighbors.
ECONOMIC AND COMMUNITY IMPACT: The city offers discounted rates for qualifying loads, provides energy-efficiency rebates and extends utility services to attract and retain business. In addition, dollars from utility staff salaries and the resulting purchases from local businesses are recirculated multiple times throughout Staples, further contributing to a healthy local economy.
The city is also part of a nationwide mutual aid network of public power communities. If a major storm causes widespread power outages, these communities work together to restore power quickly and efficiently.
DIVERSE POWER SUPPLY PORTFOLIO
AFFORDABILITY
RELIABILITY
LOCAL CONTROL AND SERVICE
ECONOMIC AND COMMUNITY IMPACT
1890
STAPLES FOUNDED
INTRODUCTION
The City of Staples supplies electricity to residents and businesses in Staples, Minnesota. As a public power utility, the city prides itself on providing reliable electric service with affordable rates, local control and exceptional customer service. The city also provides water and wastewater services in the community.
The city’s municipal electric utility is one of approximately 2,000 communityowned electric utilities in the U.S. that serve more than 55 million Americans.
1906
UTILITY ESTABLISHED
3,068
STAPLES POPULATION
1,313
ELECTRIC METERS
$3.6M
UTILITY OPERATING REVENUE
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. The utility is governed by the Staples City Council, which is comprised of seven elected officials — six council members and the mayor. All electric utility decisions go to the Staples Public Works Commission for recommendations to the council, where final decisions are made.
POWER SUPPLY
Staples is committed to using renewable and carbon-free resources while maintaining reliable and 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). The electric utility has a power supply contract with WAPA through 2050, and it also has a supplemental power supply contract with MRES that is secured through 2056.
A DIVERSE POWER SUPPLY
WAPA supplied 22% of Staples’ energy requirements in 2025, and that power is clean, renewable, reliable hydropower from dams on the Missouri River. The supplemental power supplied by MRES helps reduce risk through diversity — both in fuel source and geographic location. The power provided by MRES also focuses on environmental stewardship by developing renewable and carbon-free resources.
The diverse mix of power supply resources results in reliable, affordable and environmentally sensitive electric service for Staples’ residents and businesses.
STAPLES’ POWER SUPPLY MIX
The city actively participates in the Bright Energy Solutions® (BES) energy-efficiency program offered by MRES, which provides cash rebates for residential and commercial customers when they purchase new energy-efficient equipment. When this equipment is installed, it helps the city reduce the wholesale demand and energy purchases from MRES, ultimately saving customers money.
From 2008 through 2025, the city saved nearly 3.4 million kWh, including 5% distribution line losses, and 665 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 about 475 homes per year.
Data source: https://www.eia.gov/energy/ greenhouse-gas-equivalencies-calculator
STAPLES CUSTOMERS RECEIVED ABOUT $200,000 THROUGH BES REBATES
2008-2025
AFFORDABILITY
WHOLESALE POWER SAVINGS
Staples pays lower wholesale power supply and transmission costs compared to the average price per kilowatt-hour (kWh) of other regional wholesale suppliers.
As shown below, the blended power supply and transmission cost for the city in 2025 was 6.5 cents per kWh, represented by the green bar. The average wholesale composite rate of 20 area power suppliers was 7.7 cents per kWh (red bar), 18% higher than Staples, or a difference of 1.2 cents per kWh.
The city purchased nearly 30 million kWh from MRES and WAPA in 2025, and the utility saved $356,000 in wholesale power costs compared to the area wholesale average. This cost savings reflects the WAPA allocation and purchases from MRES, which is calculated by multiplying the total purchased kWh (30 million) by the savings rate of 1.2 cents per kWh.
These cost savings reflect the direct financial benefits the city receives from its WAPA allocation and purchases from MRES. Because Staples operates its own not-for-profit electric utility, lower wholesale electric costs keep rates lower and help fund necessary community projects and initiatives.
ADDITIONAL ONE-TIME BENEFIT
In 2020, the MRES board of directors approved a one-time refund for 10% of its members’ power supply bills from August 2019 to July 2020. Staples received about $126,000 from the refund. In 2021, MRES secured a settlement from the Federal Energy Regulatory Commission, which gave the city more than $25,000 as part of a transmission refund. The combined refunds of nearly $152,000 helped fund essential infrastructure and equipment while helping keep rates low.
CITY OF STAPLES CUSTOMER RATE COMPARISONS
A residential customer using an average of 650 kWh per month will save an estimated $3 monthly on their electric bill in 2026 compared to regional REC and IOU customers. The average monthly bill of commercial customers in all categories is similar to commercial customers of regional REC and IOU customers.
TRANSFER TO THE CITY’S GENERAL FUND
The electric fund made transfer payments to the city’s general fund as franchise fees that averaged about $157,000 each year from 2022-2025. These transfer payments total over $625,000, which amounts to about 5% of the annual electric operating revenue for the same period. In addition, electric revenue funds a portion of non-electric salaries and benefits — like city administration and economic development — as another form of transfer payments. The cost of replacing the transfer payments would likely result in increased service fees or higher property taxes collected by the city.
FRANCHISE PAYMENTS TO THE CITY OF STAPLES AVERAGED
$ 157,000 PER YEAR
ACCESS TO TAX-EXEMPT FINANCING
The city 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 large infrastructure or generation projects — investments that improve local reliability, safety and other community benefits.
CITY OF STAPLES CUSTOMERS CAN EXPECT POWER
RELIABILITY
A utility customer’s number one priority is reliability, and the city has a strong record of maintaining an electric system that operates continuously and efficiently. Based on nationally recognized data, city electric customers can expect power 99.99% of the time. What does this mean? It means less than 20 minutes of outages per year (without major events).
In recognition of the city’s reliable electric service, APPA awarded the City of Staples the 2025 Excellence in Reliability Certificate for its exceptional outage metrics from 2020-2024.
*2022-2025
AVERAGE OUTAGE TIME FOR ELECTRICITY CUSTOMERS PER YEAR*
*WITHOUT MAJOR EVENTS 2022-2024
Data sources: APPA PowerTRX Reliability & https://www.eia.gov/electricity/data/eia861/ *2022-2024 (2025 EIA data not available) 88
City crews maintain the distribution system to improve efficiency, enhance safety and increase the lifespan of equipment. Some of the annual maintenance tasks include:
Placement of new electric extensions underground
Financial allocation annually for underground and other infrastructure projects
Annual tree trimming
Infrared inspections to locate hot spots on the system
The city invests in advanced technology solutions that offer many benefits to the utility and its customers. These technologies help Staples reduce risk, protect revenue, and increase reliability and security in the rapidly changing electric industry.
The city manages a customer information/billing system (CIS) that is supported by MRES and includes:
u Preferred pricing for enterprise resource planning software with beneficial implementation
u Operational and system support
The city also manages a Coordinated Demand Response (CDR) program. Benefits include:
u Reduced demand charges, which keeps customer rates low
u Load control is a cost-effective alternative to building new generation resources
LOCAL CONTROL AND SERVICE
The city’s electric department is committed to serving the local community. When citizens have concerns, they can communicate directly with City Council members or city staff who live in the community and have Staples’ best interests in mind. Citizens are also welcomed and encouraged to attend public meetings, and the city offers local customer service with a payment office in Staples.
The utility employs local people who are part of the community and listen to the customers. They take pride in their work and know customers as family, friends and neighbors.
In the unlikely event of an outage, the city is prepared to communicate with its customers through several channels:
EFFICIENT OPERATIONS AND MUTUAL AID
The city’s headquarters and operations are located in the heart of the community. The city’s employees are familiar with the utility’s service territory and can quickly identify and correct problems. In the event an outage occurs, the city’s local crews can arrive at the outage site faster because they do not have to drive long distances to start restoring power.
More than 1,100 utilities, including the city, 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 Staples has access to a network of aid in the event of a major incident is one more benefit to the community.
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ECONOMIC AND COMMUNITY IMPACT
ECONOMIC IMPACT
The city welcomes new customers to the community and supports the growth and expansion of existing businesses. The city also works hard to contribute to vital community amenities and services that make Staples a great place to live, work and own a business.
Local utility ownership means that staff compensation supports the city’s economy by driving spending and investment. In addition, the city purchases supplies and equipment from local vendors and uses community service providers for essential business operations and vehicle maintenance. Over $700,000 in combined wages and local spending is recirculated multiple times throughout the community and contributes to its vibrant economy.
Electric utility revenue supports the city’s general fund as well as funding city salaries. More specifically, the utility funds a portion of the director’s salary for the Economic Development Authority.
COMMUNITY INVOLVEMENT
The city 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.
Here are some examples of how the city has engaged the community in recent years:
u Cost-sharing Smart Energy Squad educational kits to elementary students and teachers, reaching about 352 local students over the last ten years
u Co-sponsoring Railroad Days through MRES’ community co-sponsorship program
u Contributing money to arboretum trails and signage
u Installing banners on the Highway 10 light poles that were purchased by Discover Staples
u Providing labor, trenching and conductor to put in receptacles for the outdoor Christmas lights at Pine Grove Park
u Putting up Christmas lights and entering a bucket truck in the Holiday Lights Parade
u Putting up and taking down American flags each year
u Installing new emergency sirens in 2026
PARTNERING WITH MISSOURI RIVER ENERGY SERVICES
BUILDING SOMETHING GOOD TOGETHER
Along with 60 other public power utilities, the city can reap the benefits of being an MRES member. This includes a more 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:
u Economies of scale
u Aligned values and viewpoints to meet future challenges together
u Mutually beneficial programs and opt-in services
u Reduced risks
Key services offered by MRES include:
u Power supply and transmission planning
u State and federal legislative advocacy and regulatory compliance
u Communications and marketing
u Customer information/billing system (CIS) support
u Load control and advanced metering services support
u Energy-efficiency and electrification programs
u Cybersecurity assessments
u Rate studies
u Scholarships and school education programs
u Community co-sponsorship program
u Proactive maintenance services
u Leadership and supervisor development
u Strategic planning
u Workforce development and succession planning
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, Staples customers can count on:
u Affordable rates
u Reliable electric service
u A diverse power supply portfolio
u Governance that includes appointed local citizens who are also customers
u Local decisions that reflect community values
u Financial contributions and in-kind benefits that support the city and its residents
u Economic development support
u Quick emergency response because crews live in the Staples area
u Municipal utilities working with local groups 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 Staples a place where families thrive and businesses grow — a community that people are proud to call home.
