Cleveland Public Power
Encyclopedia
Cleveland Public Power is a publicly owned electricity generation
and distribution
company in Ohio
. It was founded in 1907 by Tom L. Johnson
, then Mayor of Cleveland, Ohio
. Before 1983 it was known as Municipal Light (or "Muny Light" for short). CPP does not have sufficient capacity to compete across the entire Greater Cleveland
area. Rather, it is intended to create additional capacity and to create a benchmark price in order to prevent price gouging
by local private utilities.
In December 1978, Mayor Dennis Kucinich
refused to sell the company when a number of bank
s, which were heavily invested in Muny Light's privately owned competitor, the Cleveland Electric Illuminating Company (better known as CEI or The Illuminating Company) refused to roll over the city's debt, as had previously been customary. This was seen as a bad move at the time - unable to pay its debts, the city became the first since the Great Depression
to enter default
- but Kucinich's decision was later vindicated by both city officials and the U.S. Senate
, which found that CEI and the banks had acted improperly.
In December 2006, a new commissioner for CPP, Ivan Henderson took over the reins from the incumbent James Majer. Under the new commissioner's guidance CPP is poised to take over the streetlight maintenance from CEI.
Electricity generation
Electricity generation is the process of generating electric energy from other forms of energy.The fundamental principles of electricity generation were discovered during the 1820s and early 1830s by the British scientist Michael Faraday...
and distribution
Electricity distribution
File:Electricity grid simple- North America.svg|thumb|380px|right|Simplified diagram of AC electricity distribution from generation stations to consumers...
company in Ohio
Ohio
Ohio is a Midwestern state in the United States. The 34th largest state by area in the U.S.,it is the 7th‑most populous with over 11.5 million residents, containing several major American cities and seven metropolitan areas with populations of 500,000 or more.The state's capital is Columbus...
. It was founded in 1907 by Tom L. Johnson
Tom L. Johnson
Thomas Loftin Johnson , better known as Tom L. Johnson, was an American politician of the Democratic Party from the late 19th and early 20th centuries. He headed relief efforts after the Johnstown, Pennsylvania floods of 1889, was a U.S. Representative from 1891–1895 and the 35th mayor of...
, then Mayor of Cleveland, Ohio
Cleveland, Ohio
Cleveland is a city in the U.S. state of Ohio and is the county seat of Cuyahoga County, the most populous county in the state. The city is located in northeastern Ohio on the southern shore of Lake Erie, approximately west of the Pennsylvania border...
. Before 1983 it was known as Municipal Light (or "Muny Light" for short). CPP does not have sufficient capacity to compete across the entire Greater Cleveland
Greater Cleveland
Greater Cleveland is a nickname for the metropolitan area surrounding Cleveland, Ohio and is part of what used to be the Connecticut Western Reserve.Northeast Ohio refers to a similar but substantially larger area as described below...
area. Rather, it is intended to create additional capacity and to create a benchmark price in order to prevent price gouging
Price gouging
Price gouging is a pejorative term referring to a situation in which a seller prices goods or commodities much higher than is considered reasonable or fair. In precise, legal usage, it is the name of a crime that applies in some of the United States during civil emergencies...
by local private utilities.
In December 1978, Mayor Dennis Kucinich
Dennis Kucinich
Dennis John Kucinich is the U.S. Representative for , serving since 1997. He was furthermore a candidate for the Democratic nomination for President of the United States in the 2004 and 2008 presidential elections....
refused to sell the company when a number of bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
s, which were heavily invested in Muny Light's privately owned competitor, the Cleveland Electric Illuminating Company (better known as CEI or The Illuminating Company) refused to roll over the city's debt, as had previously been customary. This was seen as a bad move at the time - unable to pay its debts, the city became the first since the Great Depression
Great Depression
The Great Depression was a severe worldwide economic depression in the decade preceding World War II. The timing of the Great Depression varied across nations, but in most countries it started in about 1929 and lasted until the late 1930s or early 1940s...
to enter default
Default (finance)
In finance, default occurs when a debtor has not met his or her legal obligations according to the debt contract, e.g. has not made a scheduled payment, or has violated a loan covenant of the debt contract. A default is the failure to pay back a loan. Default may occur if the debtor is either...
- but Kucinich's decision was later vindicated by both city officials and the U.S. Senate
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
, which found that CEI and the banks had acted improperly.
In December 2006, a new commissioner for CPP, Ivan Henderson took over the reins from the incumbent James Majer. Under the new commissioner's guidance CPP is poised to take over the streetlight maintenance from CEI.