WAYNE – Customers of Northeast Power are receiving a pleasant surprise in their latest power bill. During the Northeast December 15th Board meeting, they approved a revenue adjustment factor (RAF) credit of $1.5 million to appear on January and February 2021 bills.
The Board also approved a 5% retail rate decrease that becomes effective April 1, 2021. Customers will see a line item on January and February statements called “Credit Per NE Board”. This represents customers’ portion of the $1.5 million revenue reduction.
According to the Board’s Newsletter, the reductions are largely due to wholesale power cost savings, operational efficiencies, and new load within the District’s service territory. The 2021 rate reductions are in addition to recent rate reductions that were effective January 2019 and June 2020.
Additionally, Northeast Power is currently working with their rate consultant to modify rates to allow for a Power Cost Recovery Factor (PCRF) and conversion to demand (kW) billing. With reductions in wholesale power being realized and additional savings anticipated, the goal is to create a rate design that will allow for those savings to be passed through directly to customers without needing to complete a full rate study. This helps to control expenses in the future while ensuring the Board’s goal of passing along wholesale power cost savings to you is met.
Irrigation customers will also receive their portion of the $1.5 million revenue adjustment factor credit as a line-item credit on their beginning of the season 2021 demand charge invoice. The credits were calculated based on 2020 revenue and will be applied as a credit toward your 2021 charges. Be on the lookout for more information regarding changes to the irrigation rates and time of use program options in the near future. Northeast Power says they continue to analyze ways to keep costs as low as possible while balancing the hours available to irrigate. If you are not renting a property for the 2021 season, please let Northeast Power know as soon as possible!