Understanding Your Electric Rates
Learn how NRLP rates are set, what appears on your bill and why costs change.
Your electric bill is made up of several parts — each covering a different cost of providing reliable power to our community.
What Makes Up Your Electric Bill?
Basic Facilities Charge
A fixed monthly charge that helps cover the cost of maintaining the electric system — including meters, poles, wires, substations, billing and customer service — regardless of how much electricity you use.
Distribution Charge
Covers the cost of delivering electricity through NRLP’s local electric system to homes and businesses. The Distribution Charge makes up half of the Energy Charge and is measured in kilowatt-hours (kWh).
Wholesale Power Supply Charge
Reflects the cost of the electricity NRLP purchases on behalf of customers. This charge is measured in kilowatt-hours (kWh) and includes the Purchased Power Adjustment (PPA) that is typically updated once a year in March. The Wholesale Power Supply Charge is the other half of the Energy Charge.
Demand Charge
Learn more about our billing options & initiatives!
Do you want to…
- see the latest retail rate schedule?
- say goodbye to monthly bills? Consider our Prepaid Service.
- generate your own electricity? Visit the customer-owned generation page.
- round up for a good cause? Learn about the NRLP Good Neighbor Program.
- save energy and money? Explore the NRLP Resource Center!
We want to be your hometown energy partner — from providing savings tools to helping neighbors in need, we’re here when you need us.
Why Your Electric Bill Can Change
Your electric bill can change due to a variety of factors. Seasonal weather and storms, high-demand usage times and market conditions all play a role. In addition, rate adjustments — like updates to the Purchased Power Adjustment or changes to base rates — may occur. These updates help ensure NRLP can continue delivering reliable service.
What is the Purchased Power Adjustment (PPA)?
NRLP does not generate electricity. We purchase power from our supplier and pass that cost directly to customers with no markup or profit.
The Purchased Power Adjustment (PPA) ensures customer bills accurately reflect the actual cost of wholesale electricity.
To help keep bills stable throughout the year, NRLP estimates wholesale energy costs in advance. Each year, those estimates are reviewed and adjusted based on actual costs.
Why the PPA is Reviewed Each Year
The cost of wholesale electricity can change due to factors outside NRLP’s control, including:
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Extreme heat or cold
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Severe weather and storms
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Regional energy demand
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Fuel prices and energy market conditions
- Global event
Each March, NRLP:
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Reviews the actual cost of wholesale energy from the prior year
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Compares it to what was collected from customers
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Updates the PPA to reflect the difference and project costs for the year ahead
If costs were higher than expected, the PPA may increase.
If costs were lower than expected, the PPA may decrease. This is reflected in the per kWh rate on your bill labeled Wholesale Power Supply Charge.
How this Process Helps Keep Rates Fair
The annual PPA review ensures:
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Customers pay only what electricity actually costs
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Any over- or under-collection is corrected
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Rates remain fair and transparent over time
NRLP does not profit from the PPA. It is a direct pass-through of wholesale energy costs.
Looking for Ways to Save?
NRLP offers tools and resources to help customers manage energy use and costs, including:
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Energy-saving tips and usage tools
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Programs to help reduce energy use during peak demand
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Bill assistance resources for customers experiencing financial hardship
Visit the NRLP Resource Center to learn more.
Changes to Base Rates
When the cost of maintaining and operating the electric system increases over time, NRLP may file a rate case with the North Carolina Utilities Commission (NCUC) to increase base rates. Base rates are found on your bill listed as the Basic Facilities Charge, Distribution Charge and Demand Charge (for commercial customers).
Rate cases are a formal process that allow the NCUC to review and approve changes requested by NRLP. The NCUC ensures that the proposed rates are reasonable, necessary and in the public interest. NRLP cannot change base rates without Commission approval.
Customers are kept informed through the rate case process and are given opportunities to address concerns directly to approval authorities.
Electric Rates Frequently Asked Questions
What does “pass-through cost” mean?
A pass-through cost means NRLP charges customers the same price it pays for wholesale electricity. NRLP does not add profit to this cost.
Why doesn’t NRLP just absorb higher energy costs?
NRLP operates as a public power utility and must recover the actual cost of providing electricity to remain financially stable and reliable. The PPA ensures those costs are shared fairly and transparently.
Why are PPA updates reviewed in March?
March allows NRLP to review a full calendar year of actual energy costs and update projections for the year ahead. The review begins in January and the final PPA update is implemented in March.
Can the PPA ever go down?
Yes. If wholesale energy costs are lower than projected, the PPA may decrease.
What causes large changes in wholesale energy costs?
Extreme weather events, prolonged cold or heat, major storms, fuel prices, global events and regional demand can all affect wholesale energy costs.
Where can I see these charges on my bill?
The PPA is included in the Wholesale Power Supply Charge, which is measured in kilowatt-hours (kWh) on your monthly bill.
What is the difference between a PPA update and change to base rates?
PPA updates reflect changes in the cost of wholesale electricity that NRLP purchases on behalf of customers. PPA updates happen annually and are a part of ensuring NRLP recovers the correct amount for purchased wholesale energy. Base rate changes help cover the cost of operating and maintaining the grid, including poles, wires, substations, staff and system upgrades.