Rocky Mount council adopts purchase power adjustment to cover rising wholesale electricity costs

The Rocky Mount City Council on Wednesday adopted an ordinance establishing a purchase power adjustment for the remainder of fiscal year 2026 to address higher wholesale electricity costs and a depleted rate-stabilization balance.

City Attorney said the state statute that normally requires a public hearing for electric-rate changes allows an exception in limited circumstances, including catastrophic events or when adjusting rates is necessary to comply with law or contractual obligations tied to bonds or indebtedness. "If the ordinance is adopted, it also includes a finding that those circumstances stated in the statute would apply," the attorney said (transcript).

Council members said the city has not raised rates for several years while drawing down a rate-stabilization fund used to smooth wholesale-cost swings. "We were able to not have that to pass on because we had sound fiscal policy then...we took courageous steps," Councilman Blackwell said, noting the stabilization fund is no longer sufficient to offset rising costs. Councilman Knight said customers had been spared past increases largely by the stabilization fund and that wholesale costs had risen steadily.

Councilman Harris and others discussed whether an administrative charge included in the June budget amounted to a prior rate increase; several council members noted that residents who received utility bills since July 1 have seen higher charges. "Consumers, just like myself and all others, our utility bill went up," Harris said.

After extended discussion, the council called the question and approved the ordinance by voice vote. The ordinance record includes the council—s finding that the statutory exception applies.

The council did not publish a roll-call vote in the meeting transcript; the adoption was recorded by voice vote following the question being called. The attorney cited North Carolina statutes when explaining the hearing exception.

What this means: The PPA will adjust customer bills to reflect higher wholesale-power costs and reduce the city—s exposure to absorbing those costs from general balances. The council indicated the action was prompted by the loss of the rate-stabilization cushion and the need to meet financial obligations related to the utility fund.

Next steps: The ordinance takes effect as adopted; staff and the utility director were asked to provide information to council and the public on the change and how it will appear on future bills.