Columbus, Neb.– Today, the Nebraska Public Power District announced it is offering a voluntary early retirement incentive program to a select group of eligible employees.
Although NPPD has spent the last several years cutting certain costs and deferring projects, the utility has increased customers’ electric rates due to rising fuel costs, infrastructure investments, and decreased revenues from power sold in the off-system market.
“NPPD has cut costs and projects where possible without jeopardizing safety or reliability,” said Interim President and CEO John McClure. “It is prudent to take the measure of offering an early, voluntary retirement incentive program for eligible employees in order to reduce our labor costs going forward.”
The voluntary, early retirement incentive program is available to approximately 360, eligible, non-nuclear employees. NPPD hopes to save $10 million in labor savings from the program. The program is self-funded using 2011 salary dollars.
Employees who report up through the vice president and chief nuclear officer at Cooper Nuclear Station are not included in the program, because NPPD is not seeking to reduce staff at the nuclear plant. Instead, the nuclear business unit will look for savings through contractor reductions.
“The early retirements may require adjusting our business activities, yet it is our fiduciary responsibility to do all we can to control costs for our customers,” said McClure. “Practically every utility in America is challenged by increasing regulations, infrastructure investments, as well as the overall economic conditions affecting the energy business today. As our industry changes, we must work hard to meet the needs of customers while taking measures that control expenses and meet our public power obligations to provide reliable electricity at affordable rates to our customers.”