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Rocky Mount council adopts purchase-power adjustment after debate over whether it is a rate increase
Summary
The Rocky Mount City Council voted to adopt a purchase-power adjustment (PPA) policy to cover rising electric costs for the remainder of fiscal 2026 after members disputed whether the change is a formal rate increase or an administrative charge.
The Rocky Mount City Council on a voice vote adopted an ordinance to authorize a purchase-power adjustment (PPA) rate for the remainder of fiscal year 2026, a measure city attorneys said is permitted under limited statutory exceptions.
City Attorney (attorney) told council members that state law requires a public hearing when a city sets or adjusts electric rates but that the statute contains exceptions, including for catastrophic events or where an adjustment is needed to comply with bond or contractual obligations. "The ordinance that is on the agenda tonight ... includes a finding that those circumstances stated in the statute would apply," the attorney said.
Council debate focused on whether the action constitutes a formal "rate increase" or an administrative adjustment to cover higher wholesale costs. Councilman Knight said Rocky Mount has not increased residential rates since 2017 and pointed to previously used rate-stabilization funds. "If we haven't had an increase since 2017 ... then if the rate is not passed on, then it's absorbed by the city, which we do not have," Knight said. Councilman Blackwell agreed it was a difficult choice but said the city no longer has the stabilization fund and "we now have to pay as we go." Councilman Harris noted many residents "have received a new power bill since July 1" and said that for consumers "their utility bill went up."
The ordinance text on the agenda directs adoption of a policy (referenced in the meeting as 'policy number Grama numeral 10 7 0') setting the PPA for the remainder of the fiscal year; the city attorney cited the controlling statute when explaining why a public hearing was not required under the exception noted to council.
The council called the question and approved the ordinance by voice vote; the mayor then adjourned the meeting.
The ordinance will allow the city to apply an adjustment intended to offset increased wholesale power costs while the city transitions fiscal responsibilities; members asked staff to clarify communications to customers about the change and to provide documentation on how the PPA will be calculated going forward.
