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Case Study: Austin Energy

Team 5: Tatiana O., Michelle R., Claudia S. , Jami S.

Citizens wants & interests

Elects likeminded officials / city council

Checks / inspections for compliance

Best Case Scenario

Best Case Scenario

Logic of governance

City council hires business manager

Profits reinvested into Austin Energy & citizens' projects

GM heads Austin GM, sets pricing

Business manager

highers Austin energy GM

Actuality

Didn't happen

Citizens wants & interests

Elects likeminded officials / city council

Checks / inspections for compliance

Happened

Happened

Profits reinvested into Austin Energy & citizens' projects

City council hires business manager

GM heads Austin GM, sets pricing

Business manager

highers Austin Energy GM

Elects council

Provides feedback

Citizens

Appeases citizens' desires

Accepts feedback

Selects commissioners / approves recommendations

Makes policy recommendations

City council

Utility commission

Check & balances

Provides oversight

Hires GM, sets policy

Austin Energy

Makes recommendations

Provides recommendations

Independent board

CON

PRO

Independent board

• Improved finanacial oversight

• Extra funding available for "projects"

• More expensive bills to citizens

• "Lame duck" council

• Added red tape

• Extra cost

• Potential conflict of interest

• Non local members

• More cost friendly power bills

• Higher potential for lapse in oversight

Consideration points

  • Citizen preferences
  • Cost to customers
  • Cost of overhead
  • Consequences of bankrupcy
  • Comparison to like cities
  • Outcomes/consequences for not following guidance

Additional information

Maximizes proficiency, effectiveness, profit

Pricing/policies remain apolitical

Technically rational

Maximizes efficiency

Oversight plan

Prevents abuses of power

Maintains low cost energy for citizens

Politically rational

Ensures citizens' voices are heard

References

References

  • Despeyroux, T. (2019, March 19). Power Pole Pictures: Download Free Images on unsplash. Power Pole Pictures | Download Free Images on Unsplash. Retrieved September 18, 2022, from https://unsplash.com/s/photos/power-pole
  • Hamilton, A., or Madison, J. (1788, February 8). Federalist #51: The structure of the government must furnish the proper checks and balances between the different departments. New York Packet. https://guides.loc.gov/federalist-papers/text-51-60
  • Hill, C. J., & Lynn, L. E. (2016). James Madison's Legacies. In Public Management: Thinking and Acting in Three Dimensions (2nd ed., pp. 110–134). CQ Press.
  • Hill, C. J., & Lynn, L. E. (2016). Case Analysis: Austin Energy. In Public Management: Thinking and Acting in Three Dimensions (2nd ed., pp. 134–138). CQ Press.
  • Madison, J. (1787, November 22). Federalist #10: The same subject continued: The union as a safeguard against domestic faction and insurrection. New York Daily Advertiser. https://guides.loc.gov/federalist-papers/text-1-10
  • Madison, J. (1788, February 1). Federalist #47: The particular structure of the new government and the distribution of power among its different parts. New York Packet. https://guides.loc.gov/federalist-papers/text-41-50
  • Rosenbloom, D.H. (1983). Public administrative theory and the separation of powers. Public Administration Review, 43(3), 219-227.
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