NPPD BOARD APPROVES 2012 RATE INCREASE
Nebraska Public Power District’s Board of Directors approved a 6.5 percent average rate increase for both its wholesale and retail customers. The increase will take effect January 1, 2012.
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MAINTAINING VALUE—BEHIND THE OUTLET
Consumer uses for electricity are multiplying with nearly every new product that enters the market today. Some common ways in which people depend on electricity range from powering televisions, computers, game console systems, cell phones and iPods to watering their lawn, heating and cooling their home, cooking and chilling food and running every day appliances, to name a few.
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NPPD RATE ESTIMATE REMAINS THE SAME
NPPD has been working closely with its key municipal and business customers since early this year to identify and discuss the potential cost increase for 2012. Providing an early estimate allows NPPD to receive feedback and engage in idea sharing about the factors that are driving up rates. Despite some additional cost challenges related to recently passed environmental legislation, NPPD management plans to ask its Board to approve the rate increase at the same amount that was provided as an early estimate in May.
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PROPOSED 2012 RATE INCREASE
NPPD wholesale and retail electric customers will be facing a proposed average 6.5 percent rate increase in 2012. This increase is primarily due to a 75 percent increase in coal transportation costs in 2012. Coal is used to generate approximately 45 percent of the electricity NPPD produces. The second driver is due to an increase in annual debt payments for capital investments in electric system plants and facilities. These investments are needed to maintain reliability and meet current regulations.
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PUBLIC POWER WORKS FOR YOU
Electric utilities across the country are facing significant cost pressures, but as a public power utility, NPPD is doing everything it can to contain costs and keep rates affordable for customers.
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DOWNLOAD RATE MATERIALS
Providing customers with rate information as early as possible is one of NPPD’s key objectives. Information about NPPD’s proposed 2012 rate increase can be found on the Rates 101 section of nppd.com. It is important for you to know that NPPD’s Board will not vote on this proposed increase for 2012 until later this year; however, President and CEO Pat Pope said he is committed to the rate increase being an average of 6.5 percent or less.
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RETAIL/WHOLESALE FACTS
NPPD’s mission is to safely generate and deliver low-cost reliable energy and provide outstanding customer service. Working in partnership with the state’s rural public power districts, cooperatives and municipalities, NPPD helps serve an estimated 1 million Nebraskans with retail or wholesale electric power and energy-related products and services.
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