Classic Case - Future of Los Alamos City Electric Utility System (Sequel)

Future of Los Alamos City Electric Utility System (Sequel)


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  • Product Description

    The county of Los Alamos operates a small electric utility. Its largest customer, a national laboratory, faces intense pressure to reduce its payments-in-lieu-of-taxes to the county while at the same time it needs electricity at low cost to allow it to bid successfully for government contracts. This case examines a decision by the county to expand its utility business in cooperation with the laboratory; to shift reliance on public funding to utility-generated funds, and to do so without the utility becoming an institution and political force so big that it comes to dominate local politics.

    Learning Objective:
    This case can be used to demonstrate ways the public sector can shape competitive conditions without subsidy by careful attention to the cost structure of doing business. It can also be used to illustrate the policy challenges of rising electricity costs, and as such complements the Millonzi Commission (C15-84-600.0). Finally, the case illustrates the issues of shrinking budgets and the challenge to a local government to maintain organizational focus in its own activities.

  • Other Details

    Publication Date: January 01, 1984
    HKS Case Number: 561.1
    Case Author: Paul Starobin
    Faculty Lead: Robert A . Leone
    Pages (incl. exhibits): 1
    Setting: United States
    Language: English
    _year: Older than 2000
    _pages: 1-15
    _geography: US & Canada
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