Davis City Council Authorized Inactive Electric Utility

The city established Davis Power to prepare for potential future opportunities in utility service.

Updated on Oct. 14, 2026 in Utilities

Davis City Council Authorized Inactive Electric Utility

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The Davis City Council voted to amend the municipal code to create a city-owned electric utility. The new entity, named Davis Power, will remain inactive for now.

Why it matters

The council created this structure to enable the city to control its own power supply. It provides a legal framework for future development while avoiding immediate service obligations.

Establishing an inactive utility is estimated to cost less than $200,000, significantly lower than the $25 million required for full infrastructure construction. The city may fund these costs through bonds, loans, and developer contributions.

The players

Davis City Council

This is the governing body for the city of Davis that makes legislative decisions and sets municipal policy.

Davis Power

This newly established entity serves as the city's inactive municipal electric utility.

PG&E

Pacific Gas and Electric Company is a major investor-owned utility providing gas and electricity to much of Northern California.

The details

The utility is currently authorized to serve new developments through a process called greenfield municipalization, which involves building electrical infrastructure from the ground up. The city is not required to provide electricity under the current authorization.

Voters rejected a proposal to join SMUD in 2006.
Hercules sold its municipal utility to PG&E in 2014.
Valley Clean Energy failed to acquire PG&E infrastructure in 2019.
A consultant explained the greenfield municipalization process in May 2025.
The council voted to amend the municipal code on October 6, 2026.

Market Landscape

This move follows a history of municipal utility attempts, such as the 2014 sale of the Hercules municipal utility to PG&E after it incurred over $9 million in losses. By remaining inactive, Davis positions itself to avoid the immediate financial risks that have historically challenged other California cities.

The establishment of an inactive utility does not immediately change current electricity providers or retail pricing for residents. This administrative step creates a long-term framework for potential future city-run service.

The takeaway

Establishing an inactive entity allows the city to preserve options for power control while minimizing initial costs. Residents should monitor future council meetings for updates on potential development projects that could trigger active utility operations.