McPherson’s Power Play

Human directed, AI-assisted

McPherson's transformation from a frontier town to a regional industrial powerhouse can be traced back to a single decisive moment: the 1908 purchase of its private electric utility by the city government. This bold move established one of the earliest publicly owned power systems in Kansas and laid the foundation for decades of economic growth and industrial development in this remarkable community.

Founded in 1872 and named for Union General James B. McPherson, the city began as a strategic railroad hub where the Santa Fe, Union Pacific, Missouri Pacific, and Rock Island lines converged. But it was the creation of the municipal power company that would truly distinguish McPherson from its neighbors.

The benefits of public ownership became apparent during the Great Depression when McPherson's low electricity rates, combined with the timely discovery of oil in the region, helped shield the community from the worst economic hardships. Once the power company became city-owned, McPherson was able to set its own rates and reinvest profits back into the community.  The establishment of Globe Oil & Refining Company's operations in the early 1930s also provided crucial jobs and revenue streams when many American towns were struggling to survive.

The post-war era sparked further change. In 1959, a group of forward-looking business leaders formed the McPherson Industrial Development Company (MIDC). Their objective: leverage the city’s exceptionally low power rates, strategic central location, and existing rail infrastructure to attract manufacturers. Offers of discounted land and incentives sweetened the deal, but it was often McPherson’s municipal electric utility that sealed it. For industries requiring heavy energy consumption—plastic molding plants, metal fabrication shops, chemical producers—McPherson’s utility rates were among the most competitive in the nation.

McPherson became one of the most industrialized small communities in the nation and by the late 1960s, more than fifty industrial employers had set up operations in the area. The utility officially became the Board of Public Utilities (BPU) in 1969[i]. The growth continued through the 1970s and '80s, with the arrival of major pharmaceutical manufacturing, including a facility now operated by Pfizer employing over a thousand workers.

By the 21st century, McPherson had become a study in how a small city can punch above its weight. The low electric rates—set by the same municipal utility established over a hundred years ago—remain a magnet for both large corporations and innovative startups. With a population now exceeding 14,000, the city enjoys a reputation for low unemployment, affordable living, and a surprising breadth of employment opportunities across high-skill manufacturing, energy processing, healthcare, and education.

Kasi Morales, current Executive Director of MIDC, said in response to this article, “McPherson’s far-sighted forefathers spurred the manufacturing ecosystem in place today.  McPherson has the ideal location, labor situation, and power rates for a successful industrial operation. Over 50 industrial businesses call McPherson 'home', including Pfizer, Certainteed, Johns Manville, Viega, CHS and more! This is credited in large part to the McPherson Board of Public Utilities and their ability to deliver very competitive and extremely reliable electrical power to customers.”

The success story of this Kansas community provides a compelling model for rural development. More than a century after its creation, McPherson's municipal power company stands as a testament to the enduring impact of forward-thinking public investment in critical infrastructure. As rural America faces ongoing economic challenges, McPherson's experience shows how strategic local control of utilities can help small cities compete in the modern industrial economy.

[i] Kasi Morales, MIDC Executive Director

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