Utilities throughout the Northeast US experienced unusually high electricity supply costs this winter due to prolonged periods of extreme cold from mid-December through mid-February. These conditions significantly increased regional demand, causing prices in the wholesale day-ahead and real-time energy markets to rise well above normal seasonal levels.
While much of our energy supply is secured through long-term purchased power agreements, a portion must be obtained through the wholesale market. The exceptional market conditions this winter resulted in substantially higher costs for that portion of our supply. Increased customer usage during the cold weather further added to total energy expenses.
As a small municipal utility operating on a cost-recovery basis, we must adjust the energy charge per kilowatt-hour to recover these abnormal costs and maintain the financial stability needed to provide reliable electric service. This is done through a mechanism called the Purchased Power Adjustment Clause (PPAC).
This adjustment reflects only the increased cost of supplying electricity. We will continue to monitor market conditions closely and remain committed to providing safe, reliable, and affordable service to our community.
