Privatization of electrical and natural gas utility systems at Army installations
At the beginning of the 1990`s, ninety-two percent of the Army`s major CONUS (Continental United States) installations owned and operated their own natural gas distribution systems. During the past five years, four more gas systems have been transferred to the local distribution companies and many more are either under study or well on their way towards privatization. Within the Army, the growing trend is towards total privatization of both the plants and piping systems. The statistics on electrical distribution, a highly regulated utility as compared to natural gas, are comparable: ninety-eight percent Army-owned in 1990 with three transferred since then. To counteract years of severe underfunding for maintenance, repair, and rehabilitation of an aging utility infrastructure, as well as an older and shrinking workforce, the Army has embarked on a course of total divestiture of these assets and the purchase of the utility services from the {open_quotes}new utility provider.{close_quotes} The utility provider, be it a private, investor-owned utility company, or municipal utility department, as a condition of the conveyance, must accept full responsibility for system enhancements, enlargements, and environmental compliance. The Army installation, like any other customer, is then charged for service and capital improvements as part of the rate structure. Privatization, through total asset divestiture, is intended to take the burden off the installation and put it on the broader shoulders of the utility company or authority, which is organized, financed, staffed, and equipped to provide a better level of service to all its utility customers.
- OSTI ID:
- 478222
- Report Number(s):
- CONF-961173--
- Country of Publication:
- United States
- Language:
- English
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