FAQ - Rate Increase

Why do you have to raise the rates?

Since 2011 NRLP has had a contract with Duke Power, through Blue Ridge Electric. This contract adjusts every year based on Duke Power’s cost to generate electricity. These costs includes, fuel, capital construction, and maintenance of existing generation facilities.

New River’s rates are regulated by the NC Utilities Commission. We are passing on ONLY the increased cost of wholesale power. We will not be making any additional profit, only covering the cost of the wholesale increase from Duke Power.

How does my cost of electricity compare to other utilities?

NRLP continues to make every effort to keep the cost of electricity as low as possible. NRLP was ranked the lowest cost provider of electricity in North Carolina in 2010 by the U.S. Energy Information Administration (EIA). Even with this most recent 2012 rate increase, NRLP remains among the lowest providers of electricity in the Southeast.

Why can't you get the same type contract as you had before?

The cost of electricity has risen significantly since New River obtained this very favorable contract from NCEMC. Unfortunately, these terms are no longer commercially available.

Why can't we put up enough wind turbines to produce our needs?

Wind does not blow at a steady rate 24 hours a day. As a result, it is simply impractical to install wind turbines to meet New River’s needs.

Why can’t I choose whether to take electric service directly from Duke instead of New River?

The electric service boundaries of Duke and New River are established by the NC Utilities Commission and state laws. Duke is only allowed to serve retail customers located in its service area. Duke also does not have transmission capabilities to deliver power directly to New River customers.