WELCOME    ABOUT NEW RATES    ABOUT US    QUESTIONS    MULTI-MEDIA    CONTACT    RATE STUDY REPORT
 
 
 
 
 
     
     
     
     
 
 
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
Home Page Image
     
     
     
     
     
     
     
     
     
     

With this new electric rate structure, NTUA seeks a 23.7 percent increase in overall electric revenues. The rate increases will vary by customer class, meaning that a typical residential customer bill metered at 500 kwh per month is likely to see an electric bill increase of 18.8 percent.

For example, a current customer usage calculated @500 kwh is $36.00. Under the new rate structure, the amount will increase $6.75, with the total electricity line item charge amounting to $42.75

NTUA is stressing that the new rate increase will only affect the electric rates. Two years ago, NTUA adjusted the rates for water, wastewater treatment, and natural gas operations.

How will an Electric Rate Increase help NTUA?
The cost of having to make improvements to replace and repair our aging electric systems is rising. Since 1992 (the last time NTUA increased electric rates), our cost for materials, supplies, and equipment has multiplied. Necessary materials such as copper and structural steel have increased significantly. The cost of upgrading our electrical system is staggering. Most of the present system was built in the 1960s and 1970s and it is time for major upgrades, such as installing new transformers and building new substations. Our system is reaching capacity, which means more frequent outages. Therefore, in order to keep up and upgrade our electrical system, we must consider increasing the electric rate in order to provide safe and reliable services that you, our customers, expect and deserve.

How does Community growth impact NTUA?
Since 1959, the customer base for NTUA has grown from 500 customers to more than 38,000. NTUA is providing electric utility services to residents throughout the Navajo Nation. Families and communities are growing and the need for utility services continues to expand. For example, utility construction projects in remote areas require more equipment and travel; therefore, increasing the costs of materials, supplies, and gasoline. In cities, such as Farmington, Gallup, Flagstaff, and Page, electric customers are all located in one central area. NTUA has to provide service to customers who may live miles and miles apart, over 25,000 square miles, causing the cost of extending, operating, and maintaining utilities to increase significantly.

What has NTUA done to reduce costs/expenses?
NTUA has reduced costs internally, such as reducing travel, training, and purchasing. Staffing levels have remained the same for six years.Capital purchases and overtime have been reduced. Minimal meetings are conducted and confined to Navajo Nation boundaries. Major purchases are carefully reviewed and budgeted within reasonable years. We are doing what we can to control expenses, keeping in line with the cost of providing electric service. However, we can no longer hold off on certain expenses such as new substations, and electrical. However, we can no longer hold off on certain expenses such as new substations, and electrical infrastructure upgrades.

How will the Rate Increase affect the Elderly and Customers living on fixed income?
The electric rate increase will affect all classes of customers. The effect would depend on the electrical power usage of the individual household or business. Since our elderly customers typically use less electricity, they generally will see the smallest increase in their utility bills. Furthermore, there are organizations such as Low Income Home Energy Assistance Programs (LIHEAP) or the Navajo Nation Program for Self Reliance ( formerly TANF) that are available to assist households with limited income. There are additional sources of assistance to customers with special financial needs. NTUA will continue educational efforts to encourage energy conservation and offer recommendations for energy efficiency. NTUA local offices can be contacted for information on the Senior Citizen Discount Program and/or tips on energy and water conservation.

How old is the NTUA Electrical Infrastructure?
NTUA has been in the utility business since 1959. Most of the power lines were built during the 1960s and 1970s. NTUA maintains and operates these aging power lines. The years have caught up and these lines are becoming heavily loaded, which limits the capacity to serve communities and new customers. Even though we are repairing and maintaining these lines as best as we can, we will have to eventually replace them. When you have only so much money to work with, it makes required ongoing maintenance, repairs, and upgrades more difficult.

Is NTUA the only electric power company on the Navajo Nation?
NTUA is not the only utility company providing electrical service within the Navajo Nation boundaries. Residents in Western Navajo pay Arizona Public Service for electricity, residents in Eastern Navajo pay Continental Divide Electric Cooperative and Jemez Mountains Electric Cooperative, and other residents pay Rocky Mountain Power company for electricity.

Does NTUA generate electrical power? If not, where does the electric power come from?
No. NTUA does not generate electricity on the Navajo Nation. Instead, NTUA purchases electrical power from off the Navajo Nation. NTUA has to buy power from outside companies, such as Tucson Electric Power and the Western Area Power Administration. This purchased electrical power is transmitted to the Navajo Nation and distributed to Navajo homes and businesses through a vast network of power lines. Incidentally, NTUA also has to pay for the transmission of the electricity in order to move the power to homes, businesses, and facilities. In 2006, NTUA paid $24.8 million for purchased power.