Public utility district (PUD)

In some areas, local governments are responsible for providing electric services rather than allowing for-profit IOUs to handle them. In many cases, these utilities are run by the city government and are called municipal utilities, or munis. In certain states, these utilities are run by a group of cities, a county, an irrigation district, or another public entity and are called public utility districts, or PUDs. PUDs are non-profit organizations that are run by a local government agency. PUDs usually band together to create public power agencies that share ownership of generation and transmission. They may also buy power supply directly from federal power agencies or from wholesale markets. PUDs own and operate their own distribution systems.