City of Palo Alto Utilities (CPAU)

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Community Discussion:

Palo Alto Utilities has always made low rates a top priority, and consequently our energy rates are significantly lower than in neighboring PG&E serviced communities. Given that we are not a low income community, should we make renewable energy sources a higher priority, even if rates increase somewhat? Click the "Comments" tab above and give us your thoughts.

CPAU History

The City of Palo Alto Utilities (CPAU) is the only municipal utility in California that operates city-owned utility services that include electric, fiber optic, natural gas, water and wastewater services.

The CPAU history began over one hundred years ago, in 1896, when the water supply system was first installed. Two years later, the wastewater collection system came on line in 1898. In 1900, the municipal electric power system began operation, followed in 1917 by a natural gas distribution system. Palo Alto is the only city in California to own and operate six essential utility services including refuse and storm drain. In 1996, Palo Alto ventured into a new endeavor with the construction of its 31-mile dark fiber loop.

It was the forward thinking of two Stanford University professors, Charles "Daddy" Marx and Charles Benjamin Wing, was largely responsible for the emergence of the municipally owned utility service in Palo Alto. Marx and Wing argued that the City could provide utility service at rates significantly below those charged by private companies. One of the founding principles of these early pioneers was that the utilities must show a financial return to the community. This has continued to be a priority. In the most recent fiscal year, the electric, gas, and water utilities provided millions in financial support to community services such as libraries, parks, police and fire protection. These contributions to the community do not occur in areas served by private power companies. This makes Palo Alto a unique place to live and work.

CPAU has produced an excellent brochure, All About Your Utilities, revised in 2007: about_utilities.pdf.