Rocky Mount council hears options to cover multi‑million-dollar wholesale power true-ups; representative backs lump‑sum debt release

City staff and council members discussed how wholesale power cost “true ups” from Duke are being passed through by the joint purchasing agency and the financial options before that agency’s board.

Mister Beshore, who said he serves as Rocky Mount’s representative on the rate committee, explained that large true-ups in 2022 and 2023—driven largely by underestimated natural gas costs—produced tens of millions in retroactive wholesale charges and that Nikampa/Kempa’s working capital has been drawn down. He said one true-up in 2022 was about $53 million overall and estimated Rocky Mount’s share at roughly $5 million; the 2023 true-up was estimated near $40 million overall with Rocky Mount’s portion near $4 million.

Beshore described two options the purchasing agency proposed to address the 2024/2025 true-ups. Option 1 would release members’ debt amounts as lump-sum debt-release payments in July 2025 and accept a larger wholesale-rate increase in the first year (about 6.5%), then lower increases in later years. Option 3 (the committee‑favored outcome in the rate committee vote) would use the debt release to bolster the agency’s working capital and spread member repayments over 24 months, producing a lower immediate increase (about 3.5% in year one) but extending member repayments into future fiscal years.

Beshore said the rate committee vote was 13 members for Option 3 and 4 members for Option 1. He said the rate committee’s recommendation is a majority-rule outcome that will go to the purchasing agency’s board (a weighted vote) on April 23. Beshore noted that some municipalities that had already approved retail-rate increases to cover earlier true-ups favored Option 3 because it reduced near-term pressure on retail rates. He said Rocky Mount has instead used its rate stabilization fund to avoid passing wholesale increases to customers.

Council members asked about projected working-capital targets and the practical budget impact. Staff reported the city’s electric rate stabilization balance was roughly $11 million after upcoming payments; receiving the debt release under Option 1 would add the city’s share (about $2.3 million) in one lump sum and keep the fund higher in the near term, while Option 3 would spread that benefit over multiple years. Staff warned these numbers are projections and depend on Duke’s future wholesale cost filings.

After the presentation and discussion, one councilmember said he planned to “concur with Mister Beshore’s vote and vote for Option 1,” and another councilmember responded “I propose we go with the option 1.” The body then recorded a voice affirmation (ayes) in favor. Staff and Beshore cautioned the purchasing agency’s board will make the final decision in a weighted vote on April 23 and that member municipalities could lobby other members prior to that meeting.

No contract or retail rate changes were approved by the Rocky Mount council in the meeting; the item is a local position on a regional purchasing-agency decision.