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Richmondville Power & Light Customers:
RPL doesn’t generate power, we distribute it. Our electric rates reflect our base cost for hydropower and our cost to distribute the power over our lines. Throughout the year when our usage is higher, we exceed our allotment and must purchase supplemental power. This will lead to a higher purchase power adjustment (PPA) rate.
Does the MEU profit from the PPA collected?
NO, the MEU does not profit from the PPA dollars collected from customers.
*SOME THINGS TO KEEP IN MIND*
Why does a Municipal Electric Utility (MEU) have to pay for transmission and wholesale power?
MEUs generally do not generate their own electricity, so to supply power to its customers, the MEU must purchase the power. MEUs have a contract with the New York Power Authority (NYPA) for an allotment of low-cost hydro power generated by Niagara Falls. Any power in excess of the allotment requires the purchase of supplemental power.
How does the power get to the MEU?
The power travels to a MEU through transmission lines. These transmission lines are owned by various investor-owned utilities throughout New York State, such as National Grid and NYSEG. A MEU must pay the utility to get the power into the Village, Town, City, etc.
Where does supplemental power come from?
Supplemental power is purchased from the New York Municipal Power Agency (NYMPA). This power is purchased from the open market, and therefore it’s cost can fluctuate based on current market trends.
What is the Purchase Power Adjustment (PPA)?
A calculated rate to allow for the collection of the cost of the transmission of wholesale power costs, this is 0 in addition to excess of base purchased power costs to customers. Base purchase power rates are defined in each MEU’s tariff.
Why is the PPA so high some months?
In addition to market conditions, the cost of the PPA fluctuates with the seasons. During the winter months, from November to April, usage tends to be higher. When more power is used throughout the MEU, it can cause usage to exceed the allotment of hydro power from NYPA. When that allotment is exceeded, supplemental power needs to be purchased. This causes the total purchased power to be higher, resulting in a higher PPA rate.
RPL doesn’t generate power, we distribute it. Our electric rates reflect our base cost for hydropower and our cost to distribute the power over our lines. Throughout the year when our usage is higher, we exceed our allotment and must purchase supplemental power. This will lead to a higher purchase power adjustment (PPA) rate.
Does the MEU profit from the PPA collected?
NO, the MEU does not profit from the PPA dollars collected from customers.
*SOME THINGS TO KEEP IN MIND*
- RPL has NOT changed its electric rates SINCE 2011
- Higher usage= Higher Purchase Power Adjustment Rate
- Even with the additional purchased power, our rate is significantly less that what’s available through National Grid/NYSEG
- Budget Plans & Deferred Payment Agreements are available at the Village Office-Please call 518-294-7700 Monday-Friday 7:30am-4:00pm.
Why does a Municipal Electric Utility (MEU) have to pay for transmission and wholesale power?
MEUs generally do not generate their own electricity, so to supply power to its customers, the MEU must purchase the power. MEUs have a contract with the New York Power Authority (NYPA) for an allotment of low-cost hydro power generated by Niagara Falls. Any power in excess of the allotment requires the purchase of supplemental power.
How does the power get to the MEU?
The power travels to a MEU through transmission lines. These transmission lines are owned by various investor-owned utilities throughout New York State, such as National Grid and NYSEG. A MEU must pay the utility to get the power into the Village, Town, City, etc.
Where does supplemental power come from?
Supplemental power is purchased from the New York Municipal Power Agency (NYMPA). This power is purchased from the open market, and therefore it’s cost can fluctuate based on current market trends.
What is the Purchase Power Adjustment (PPA)?
A calculated rate to allow for the collection of the cost of the transmission of wholesale power costs, this is 0 in addition to excess of base purchased power costs to customers. Base purchase power rates are defined in each MEU’s tariff.
Why is the PPA so high some months?
In addition to market conditions, the cost of the PPA fluctuates with the seasons. During the winter months, from November to April, usage tends to be higher. When more power is used throughout the MEU, it can cause usage to exceed the allotment of hydro power from NYPA. When that allotment is exceeded, supplemental power needs to be purchased. This causes the total purchased power to be higher, resulting in a higher PPA rate.
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Maintained UpstateNYIT
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