United States
Founded: 1913
Industries: Oil and Gas, Water
Headquarter: United States
The Virginia Department of Public Utilities (VPU) is a city-owned entity, serving the City of Virginia since 1913. Governed by the Department of Public Utilities Commission, it aims to provide the citizens with quality products and superior customer service at reasonable rates.
The Utility engages in the production of electricity and steam through its co-generating facility, operates a state-of-the-art water treatment plant for high-quality water, and also sells natural gas. Situated in the Iron Range in northern Minnesota, Virginia forms part of the Quad Cities of Eveleth, Mountain Iron, and Gilbert covering a total of 70 square miles with a combined population of 25,481.
In 2004, the formation of a joint venture with the Hibbing Public Utilities Commission led to the creation of Laurentian Energy Authority (LEA). With wood-burning boilers and a wood-handling yard in Mt. Iron, both entities burn biomass to provide 35 megawatt-hours of electricity to Northern States Power (Xcel Energy). The steam system currently serves over 1,800 customers, electric serves over 5,200 customers, water serves over 3,900 customers, and gas serves over 1,600 customers.
This company presents an intriguing investment opportunity due to its long-standing history, essential utility services, and innovative ventures like the formation of LEA, which demonstrates a commitment to sustainable energy practices. The intimate focus on a specific geographic region allows for a stable customer base and potential for controlled expansion within the Iron Range area. Furthermore, the essential nature of the provided services indicates a reliable revenue stream, making Virginia Public Utilities an attractive prospect for potential investors seeking stability and steady returns within the utilities sector.
