Beatrice Lang
Fairport Electric is a municipally-owned power company that provides electricity to over 17,000 customers in Monroe County, New York. Residents of Fairport Electric enjoy rates that are significantly lower than those of other utilities in the region, sometimes by as much as 73%. This is due to a variety of factors, including the availability of hydropower, the not-for-profit status of Fairport Electric, and its efficient management. While Fairport Electric is funded entirely by customer rates, it is worth exploring whether taxes play any role in supporting its operations and how its rates compare to those of investor-owned utilities.
| Characteristics | Values |
|---|---|
| Fairport Electric's residential electricity price | 5.93 cents per kilowatt-hour |
| Average monthly electricity bill | $76.33 |
| State average monthly bill | $139.40 |
| State average rate | 21.98 cents |
| Fairport Electric's base rate | $0.04083/kilowatt hour for the first 1000 kWh used monthly |
| Fairport Electric's delivery charge | $4.67 per month (no tax) |
| Fairport Electric's status | Municipally-owned, not-for-profit |
| Fairport Electric's funding | Entirely funded by customer rates, no part of village taxes |
| Fairport Electric's customers | 20 industrial, 15,517 residential, and 2,065 commercial accounts |
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What You'll Learn
- Fairport Electric is a municipally-owned utility, which is funded entirely by customer rates
- Fairport Electric's rates are typically 1/3 less than other utilities in the region
- Fairport Electric's rates are 73% below the state's average rate
- Fairport Electric's rates are highest in October, with the highest average bill in August
- Fairport Electric is exempt from state tax but does pay local property taxes
Fairport Electric is a municipally-owned utility, which is funded entirely by customer rates
Fairport Electric is "owned" by the residents and electric customers of the Village of Fairport and most of Perinton. Its operations are overseen by an appointed, five-person Commission of local residents. The Fairport Municipal Commission is regulated by the Public Service Commission, which continually monitors its calculations and collection of charges. Fairport Electric's rates are also kept low due to its access to hydropower, its not-for-profit status, and its efficient management.
The Village of Fairport is one of only 43 municipalities in New York with a Municipal Electric Department/Commission and a contract that allows it to purchase hydropower, the cheapest power available. Fairport Electric receives an allocation of low-cost hydropower from the Robert Moses Generating Facility at Niagara Falls, owned by the New York Power Authority (NYPA). As a condition of generating power using the waters of the Niagara River, NYPA must sell a portion of its generation to municipal and investor-owned utilities at a low, preference price. Fairport Electric, as a non-profit, can then resell this power to its customers at a below-market price.
Fairport Electric's rates are computed using two factors: the base rate and the Purchased Power Adjustment factor. The base rate for residential customers is $0.04083 per kilowatt-hour for the first 1000 kWh used monthly. The Purchased Power Adjustment factor accounts for the higher cost of incremental power used and ISO (Independent System Operator) charges. Fairport Electric's delivery charge is a flat rate of $4.67 per month, and unlike investor-owned utilities, it is not subject to state tax or various state assessments.
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Fairport Electric's rates are typically 1/3 less than other utilities in the region
Fairport Electric is a municipally-owned power company that provides electricity to over 17,000 customers in Monroe County, New York. It is one of 47 municipally-owned power companies in the state. Fairport Electric's rates are typically one-third less than other utilities in the region, and its customers pay considerably less for power than those of nearby utilities.
The low rates offered by Fairport Electric are due to a combination of factors. Firstly, Fairport Electric has access to hydropower, which is the cheapest power available. The company receives an allocation of low-preference-priced hydropower from the Robert Moses Generating Facility at Niagara Falls, owned and operated by the New York Power Authority (NYPA). As a condition of generating power using the waters of the Niagara River, NYPA is mandated to sell a portion of its generation to municipal and investor-owned utilities at a low, preferential price. Fairport Electric, as a non-profit enterprise, can then resell this power to its customers at a price below market value.
In addition to the availability of low-cost hydropower, Fairport Electric's not-for-profit status, size, and efficient management contribute to its ability to offer lower rates. As a municipally-owned utility, Fairport Electric is overseen by an appointed commission of local residents, rather than a board of directors, and is exempt from certain taxes and assessments. This structure allows the company to keep costs low and pass the savings on to its customers.
The impact of Fairport Electric's low rates extends beyond individual customers; it has also played a role in the economic growth of the community. The company's favourable rates have attracted businesses to the area, and its reliable service has earned positive testimonials from customers. Real estate advertisements even highlight Fairport Electric's service as a selling point for properties.
While Fairport Electric's rates are currently significantly lower than those of other utilities in the region, it is important to note that electricity costs are subject to change over time. The cost of hydropower has been increasing at a rate of about 3.5% per year, and as the demand for electricity grows, Fairport Electric may need to purchase more expensive incremental power to meet its customers' needs. Despite these potential challenges, Fairport Electric remains committed to providing its customers with reliable and affordable electricity.
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Fairport Electric's rates are 73% below the state's average rate
Fairport Electric is a municipally-owned power company that provides electricity to over 17,000 customers in Monroe County, New York. It is one of 47 municipally-owned power companies in the state. Fairport Electric's rates are significantly lower than those of other utilities in the region, typically about one-third less. This is due to a combination of factors, including the availability of hydropower and the company's not-for-profit status.
The residential electricity price for Fairport Electric customers is, on average, 5.93 cents per kilowatt-hour, which is 73% below the state's average rate of 21.98 cents. This low rate is made possible by Fairport Electric's access to low-cost hydropower from the Robert Moses Generating Facility at Niagara Falls, owned by the New York Power Authority (NYPA). As a condition of generating power using the waters of the Niagara River, NYPA is required to sell a portion of its generation to municipal and investor-owned utilities at a low, preferential price. Fairport Electric, as a non-profit enterprise, can then resell this power to its customers at a below-market price.
In addition to hydropower, Fairport Electric also purchases incremental power from the wholesale electricity market when its customers' demand exceeds the amount of hydropower allocated to them. This incremental power is much more expensive and can account for a significant portion of Fairport Electric's total power bill during high electric usage months. However, even with the additional cost of incremental power, Fairport Electric's rates remain significantly below the state average.
The low electricity rates offered by Fairport Electric have had a positive impact on the economic growth of the community. Businesses have cited Fairport Electric's favourable rates as a major factor in their decision to locate facilities in the area, and real estate advertisements often highlight properties served by Fairport Electric. The municipal commission has also secured grants of low-cost electricity for several local businesses, further contributing to the community's economic development.
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Fairport Electric's rates are highest in October, with the highest average bill in August
Fairport Electric is a municipally-owned power company that provides electricity to over 17,000 customers in the Village of Fairport and Perinton in New York. It is one of 47 municipally-owned power companies in the state and is funded entirely by customer rates—no part of village taxes goes to Fairport Electric.
The Village of Fairport is one of only 43 municipalities in New York with a Municipal Electric Department/Commission and a contract that allows them to purchase hydropower, the cheapest power available. Fairport Electric's rates are typically about 1/3 less than that of other utilities in the region. This is because electricity comes from the availability of hydropower, and because Fairport Electric has not-for-profit status, is small, and is well-managed.
However, Fairport Electric's rates are highest in October, with the highest average bill in August. This can be attributed to the two factors that compute customers' bills. The first is the base rate, which is different for residential, commercial, and industrial customers. The second is the Purchased Power Adjustment factor, which adjusts for the higher cost of incremental power used and ISO (Independent System Operator) charges.
Incremental power is much more expensive than hydropower. In some high electric usage months, 30% of Fairport Electric's purchases are incremental power, but this accounts for 60% of the total power bill. As new homes and businesses are built, and existing customers use additional power, Fairport's incremental power purchases increase. Additionally, the cost of hydropower has been increasing by about 3.5% per year, resulting in further charges on customers' bills.
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Fairport Electric is exempt from state tax but does pay local property taxes
Fairport Electric is a municipally-owned power company that provides electricity to over 17,000 customers in Monroe County, New York. It is one of 47 municipally-owned power companies in the state and is funded entirely by customer rates.
As a municipal electric utility, Fairport Electric is exempt from state taxes but does pay local property taxes. This is a key difference between Fairport Electric and investor-owned utilities like Rochester Gas & Electric (RG&E), which is overseen by a Board of Directors and pays dividends to shareholders. Fairport Electric's rates are also considerably lower than those of investor-owned utilities, thanks to its access to low-cost hydropower and its not-for-profit status.
The Village of Fairport is one of only 43 municipalities in New York with a contract to purchase hydropower, the cheapest power available. Fairport Electric receives an allocation of low-cost hydropower from the Robert Moses Generating Facility at Niagara Falls, owned by the New York Power Authority (NYPA). As a condition of generating power using the waters of the Niagara River, NYPA must sell a portion of its generation to municipal and investor-owned utilities at a low, preference price. Fairport Electric can then resell this power to its customers at a below-market price.
In addition to hydropower, Fairport Electric also purchases incremental power from the wholesale electricity market when its customers' demand exceeds its hydropower allotment. This incremental power is much more expensive and can result in rate hikes for customers. However, Fairport Electric's rates are still significantly lower than those of other utilities in the region, with residential customers paying about one-third less than the state's average rate.
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Frequently asked questions
No, Fairport Electric is a municipal and cooperative electric utility and is exempt from state tax and the state’s various assessments. Fairport Electric is funded entirely by customer rates and no part of village taxes goes to Fairport Electric.
Fairport Electric's rates are typically about 1/3 less than other utilities in the region because electricity comes from the availability of hydropower, and Fairport Electric has not-for-profit status, and is small and well-managed.
Fairport Electric customers’ bills are computed using two factors: the base rate and the Purchased Power Adjustment factor. The base rate is different for different customer segments and usage levels. The Purchased Power Adjustment factor adjusts for the higher cost of incremental power used and ISO (Independent System Operator) charges.
