With increasing prices and volatility in the wholesale power supply market, utilities must ensure existing retail rates are adequate to pay for increased power costs.
Because power supply costs are typically the largest single expense category for most utilities, a significant change in costs can require a significant change in retail rates.
It is also important that utilities plan for sufficient reserves to absorb short-term fluctuations in power supply costs without implementing rate changes. Sufficient reserves can also help meet unexpected expenses, such as substation transformer replacement or repairing storm-related damage construction projects. In an effort to assist members utilities in understanding system costs and determining rates, consider a NMPP Cost of Service/Retail Rate Design Study (COS/RDS) for your community.
Features of the COS/RDS include:
To avoid the need for a large up-front expenditure, NMPP Energy offers different payment options – monthly, annually or in advance – based on the number of electric customers. Small communities may qualify for special pricing.
To assist its member utilities in helping keep their customers informed and save time and effort, NMPP Energy offers a utility newsletter service. The Community Connections newsletter is a low cost, effective way to regularly communicate with your utility customers. More...