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The Value of Public Power in Holland
Holland’s municipal electric utility, Holland BPW, delivers measurable benefits that allow residents and businesses in our community to flourish: lower costs, higher reliability, and local decision-making. Through a partnership with the Michigan Municipal Electric Association (MMEA), the advantages of public power have been quantified for Holland’s customers. A recent study conducted by Utility Financial Solutions, LLC, provides perspective on these advantages in 2023.
Lower Rates, Greater Savings
Holland BPW offers the lowest electric rates in Michigan’s lower peninsula, as confirmed by a report from the American Public Power Association (APPA). Customers pay less today than they did a decade ago. The efficiency of Holland Energy Park (HEP) and favorable natural gas costs enabled the early retirement of debt used to build the plant, resulting in direct savings for the community. Compared to customers of neighboring investor-owned utilities, Holland BPW customers pay 45% less for electricity. Residential customers collectively save $14 million per year on electricity rates, which translates to an average annual savings of $500 for each household.
Customers Pay
45% Less
When Compared to Neighboring Investor Owned Utilities
Reliability You Can Count On
Reliability is central to Holland BPW’s service. Performance is continuously measured, tracked, and improved using industry metrics like SAIFI (frequency of outages) and SAIDI (duration of outages). When outages occur, the team responds quickly to restore power. On average, Holland BPW customers experience only one outage every three years. When an outage occurs, it is restored in about half an hour. In contrast, nearby investor-owned electric customers typically experience four outages every three years, lasting over eight hours. Utility Financial Solutions’ report for 2023 quantifies the value of Holland BPW’s reliability, showing that our dependable electricity resulted in a savings of $14.8 million for customers. This savings was calculated using the Interruption Cost Estimate (ICE) calculator developed by Lawrence Berkeley National Laboratory and Resource.
For more information on the impact of Public Power in Michigan please go to MIpublicpower.org/public-power/impact/.
$14.8MM
Saved from Faster Power Restoration
(without major event days)
Local Control, Priceless Value
Local control ensures that decisions are made by individuals who live and work in Holland. The value of locally managed utility infrastructure and services is significant. Beyond direct customer benefits, Holland BPW contributed $8.5 million to the city’s general fund based on 2023 results, supporting essential services and community initiatives.
Holland BPW’s public power model delivers lower costs, higher reliability, and local decision-making—benefits that add up to millions in savings and a stronger community. This is the true value of public power in Holland.
$8.5MM
Contributed to the City of Holland General Fund