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ElectriCities warns Benson of multi‑year wholesale "true‑ups" that could raise costs
Summary
An ElectriCities representative told Benson commissioners that wholesale power "true-ups" tied to a 2015 asset sale have ballooned from small adjustments to "millions of dollars," with the 2022 and 2023 true‑ups scheduled to be recovered over 24 months.
Roy Jones of ElectriCities told the Town of Benson Board of Commissioners on Nov. 12 that annual wholesale power "true‑ups" tied to a 2015 asset sale and a power‑purchase agreement with Duke Energy Progress have grown significantly.
"For years, the true ups have been small, but now they are millions of dollars," Jones said, explaining that NCEMPA sold assets to Duke Energy Progress in 2015 and entered a power‑purchase agreement that runs through 2035. He said the underlying NCEMPA debt payment is expected to be paid off in July 2025.
Jones described how the true‑up process works: bills are estimated for an upcoming year and the actual costs are reconciled the following year. He said the 2022 true up began with the wholesale bill in April 2024 and will be recovered over 24 months; the 2023 true up began with the October 2024 bill and will likewise be recovered over 24 months.
Why it matters: the town purchases wholesale power through regional arrangements, and large multi‑year true‑ups can translate into higher purchased‑power costs that may be passed to customers or require budget adjustments. Benson commissioners did not take action at the meeting; the presentation was informational and there were no public comments on the topic.
The Board may receive further rate, budget or policy recommendations if town staff or the local electric utility assess the revenue impact from the true‑ups.
