THE BURNED OVER DISTRICT

Instead of the the money hungry hounds of Wall St., you do a better job. And that is why some cities are re-examining the advantages of municipal electric companies.

Roughly 70 percent of the nation’s homes are powered through private, investor-owned utilities, which are allowed to earn a set profit on their investments, normally through the rates they charge customers. But government-owned utilities, most of them formed 50 to 100 years ago, are nonprofit entities that do not answer to shareholders. They have access to tax-exempt financing for their projects, they do not pay federal income tax and they tend to pay their executives salaries that are on par with government levels, rather than higher corporate rates.

That financial structure can help municipal utilities supply cheaper electricity. According to data from the federal Energy Information Administration, municipal utilities over all offer cheaper residential electricity than private ones — not including electric cooperatives, federal utilities or power marketers — a difference that holds true in 32 of the 48 states where both exist. In addition, they can plow more of their revenue back into maintenance and prevention, which can result in more reliable service and faster restorations after power failures.

In Massachusetts after Hurricane Irene in 2011, for instance, municipal utilities in some of the hardest-hit areas were able to restore power in one or two days, while investor-owned companies like NStar and National Grid took roughly a week for some customers. According to an advocacy group called Massachusetts Alliance for Municipal Electric Choice, government-owned utilities on average employ more linemen per 10,000 customers than the private companies.

And in Winter Park, Fla., which in 2005 took over from its private utility, now part of Progress Energy, customers pay competitive rates for more reliable service, said Randy Knight, the city manager. It took time to get there: The utility lost money and raised rates in its early years while it made capital improvements to the system. But now, Mr. Knight said, it is making about $5 million in profit on about $45 million in revenue, profit that is paying to put the wires underground. The city has already buried 10 of its 80 miles of cable, a project that should be completed in the next 15 years at current rates and power supply costs.

It's not all beer 'n skittles for municipal systems. And the private utilities can be expected to put up a hell of a fight to keep the people from taking the bonuses from the mouths of their CEO's, but overall it can be a winner for people.