Fayetteville Public Works Commission Lowers Customer Fees, Adopts Optional Electric Rates

by Paul Ciampoli
APPA News Director
August 5, 2022

North Carolina’s Fayetteville Public Works Commission (PWC) took action in late July that maintains PWC’s current base electric rates, reduces customer fees, introduces optional electric rates that will offer customers’ choice and continue to support PWC conservation efforts as well as support economic development. 

PWC’s new optional whole home/business rate will provide additional incentive for off-peak energy use by introducing a new super-off-peak rate, that is 50% less that PWC’s current off-peak electric rate. 

Available in February 2023, customers will have the option to sign up for the new rates, pay a slightly higher basic facility charge, but a pay a significantly lower rate for energy use weekdays from 9pm-5 am.

The rate supports PWC’s continuing efforts to reduce energy demand costs and provides options for electric vehicle owners to charge during low demand hours that lessen EV impacts on the electric system. 

PWC introduced Time of Use electric rates in 2019 to help decrease energy demand costs and apply the same pricing structure to energy that PWC pays Duke Energy, its wholesale power-supplier.  During ‘peak’ weekday usage on the electric system, power demand costs are significantly higher than other times of the day. Shifting energy use outside of the peak hours, helps PWC lower over-all power costs and maintain reasonable rates. 

Also effective in February 2023, PWC will offer a new Renewable Energy Buy Back rider for customers who install rooftop solar. The rate will be available for residential and small power customers generating 10 kW or less of energy. The rate will accompany bi-directional metering and replace PWC’s current buy-all, sell-all rates for roof top solar.

PWC also adopted a new economic development rate for customers who bring 1,000 kW loads to the PWC system or 750-kW through expansion. The discounted rate, effective in September, includes employee and/or capital investments along with other requirements and adds another economic development tool for the community to attract new business or encourage expansion.

Also effective in September, PWC is changing its demand and energy rate for Medium Power Service customers to continue PWC efforts to manage high energy costs because of peak hour usage.  The rate lowers the demand threshold from 200 to 150 kW and has a 15% lower kwh charge.  Customers currently in the rate classification will have the option to enroll to the new rate in September.  The new rate will be applied all Medium Power Service Customers in September 2023.

In other changes, PWC lowered fees for connection, reconnection, and meter testing, passing along savings achieved by new technology and operations.