May 2022 – Inflation is impacting every part of daily life and every industry in the global economy. From grocery stores and gas stations to restaurants and car dealerships, the price of just about everything is increasing.

NPU is not immune from these economic realities. The price of the electricity and natural gas that we purchase for our customers has increased significantly over the past 6-8 months. Every other utility company in the United States is experiencing these increases.
In the United States, energy costs increasing dramatically – even as much as 50% in some markets. But NPU has worked to avoid similar-sized increases for our customers.

Our utility rates include a Purchased Power Adjustment (PPA) and Purchased Gas Adjustment (PGA) that pay for the purchase of the electricity and natural gas used by our customers. NPU uses our Rate Stabilization Funds (electric) and cash reserves (electric and natural gas) to help us manage the fluctuation in our energy costs.

All of these elements are part of your bill each month – and are critical to helping us provide stable rates for longer periods of time. Without a PPA and PGA, our rates would increase and decrease – sometimes significantly – each month. This would create unease for both our customers and our overall financial operations.

Therefore, NPU will be adjusting our PPA and PGA effective June 1, 2022, to account for the increased cost of the electricity and natural gas that we buy for our Residential and Commercial customers.

At this time, we estimate the following monthly impacts on an average residential customer:

• Customer receiving natural gas, electricity, water, and wastewater – $15 increase (4.1%)
o This is approximately 50 cents per day

• Customer receiving only natural gas – $7 increase (6%)
o This is approximately 23 cents per day

• Customer receiving only electricity – $8 increase (6%)
o This is approximately 27 cents per day

It is important to understand that none of these increased costs stay with NPU; every dollar of the PPA and PGA increase will be used to pay for the increased energy costs we are experiencing. We monitor our energy costs very closely and will make additional adjustments should conditions change in the months ahead.