Public utility district
Encyclopedia
In the United States, a public utility district (PUD) is a special-purpose district
Special-purpose district
Special-purpose districts or special district governments in the United States are independent governmental units that exist separately from, and with substantial administrative and fiscal independence from, general purpose local governments such as county, municipal, and township governments. As...

 or other government
Government
Government refers to the legislators, administrators, and arbitrators in the administrative bureaucracy who control a state at a given time, and to the system of government by which they are organized...

al jurisdiction
Jurisdiction
Jurisdiction is the practical authority granted to a formally constituted legal body or to a political leader to deal with and make pronouncements on legal matters and, by implication, to administer justice within a defined area of responsibility...

 that provides public utilities
Public utility
A public utility is an organization that maintains the infrastructure for a public service . Public utilities are subject to forms of public control and regulation ranging from local community-based groups to state-wide government monopolies...

 (such as electricity
Electricity
Electricity is a general term encompassing a variety of phenomena resulting from the presence and flow of electric charge. These include many easily recognizable phenomena, such as lightning, static electricity, and the flow of electrical current in an electrical wire...

, natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...

, sewage treatment
Sewage treatment
Sewage treatment, or domestic wastewater treatment, is the process of removing contaminants from wastewater and household sewage, both runoff and domestic. It includes physical, chemical, and biological processes to remove physical, chemical and biological contaminants...

, waste collection
Waste collection
Waste collection is the component of waste management which results in the passage of a waste material from the source of production to either the point of treatment or final disposal...

/management
Waste management
Waste management is the collection, transport, processing or disposal,managing and monitoring of waste materials. The term usually relates to materials produced by human activity, and the process is generally undertaken to reduce their effect on health, the environment or aesthetics...

, wholesale
Wholesale
Wholesaling, jobbing, or distributing is defined as the sale of goods or merchandise to retailers, to industrial, commercial, institutional, or other professional business users, or to other wholesalers and related subordinated services...

 telecommunications, water
Water
Water is a chemical substance with the chemical formula H2O. A water molecule contains one oxygen and two hydrogen atoms connected by covalent bonds. Water is a liquid at ambient conditions, but it often co-exists on Earth with its solid state, ice, and gaseous state . Water also exists in a...

) to the residents of that district.

PUDs are created by a local government
Local government
Local government refers collectively to administrative authorities over areas that are smaller than a state.The term is used to contrast with offices at nation-state level, which are referred to as the central government, national government, or federal government...

 body, such as a city
City
A city is a relatively large and permanent settlement. Although there is no agreement on how a city is distinguished from a town within general English language meanings, many cities have a particular administrative, legal, or historical status based on local law.For example, in the U.S...

, county, or metropolitan
Metropolitan area
The term metropolitan area refers to a region consisting of a densely populated urban core and its less-populated surrounding territories, sharing industry, infrastructure, and housing. A metropolitan area usually encompasses multiple jurisdictions and municipalities: neighborhoods, townships,...

 service area (two or more communities joining together for public utility purposes). Normally the districts are non-profit.

PUDs are often governed by a commission
Government agency
A government or state agency is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an intelligence agency. There is a notable variety of agency types...

, which may be appointed or elected
Election
An election is a formal decision-making process by which a population chooses an individual to hold public office. Elections have been the usual mechanism by which modern representative democracy operates since the 17th century. Elections may fill offices in the legislature, sometimes in the...

.

Municipal Utility District
Municipal Utility District
A Municipal Utility District is a special-purpose district or other governmental jurisdiction that provides public utilities to the residents of that district...

s (MUD
Municipal Utility District
A Municipal Utility District is a special-purpose district or other governmental jurisdiction that provides public utilities to the residents of that district...

) are similar but have taxation authority while PUD do not.

Historically, many of the electric PUDs in the Pacific Northwest were created with the express purpose of taking over the territory served by the investor-owned utility then serving customers within the proposed PUD's territory (and in some cases, the PUD's organizers were the only ones in favor of its creation - elections centering on the creation of a PUD often coming back with a decisive majority in favor of staying with the IOU). The creation of many of these PUDs was also possible due to favorable laws on the books at the time and with the direct assistance of individuals in various federal agencies that were strong proponents of public ownership of electric utilities (such as Dr. Paul J. Raver of Bonneville Power Administration).
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