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.

And, while the uses for electricity continue to multiply for an average consumer, so do the costs to generate and deliver that energy. That’s one reason why Nebraska Public Power District works closely with customers to manage costs and provide reliable service. NPPD generates electricity at its power stations, transmits it over high-voltage power lines, and then delivers this energy over retail distribution lines to you.

NPPD does not make a profit. We set rates to cover costs and any revenue received is used to pay operating expenses such as ongoing maintenance, construction or system upgrades. This not-for-profit model provides value to customers. In Nebraska, residential electric consumers pay less than $3 per day for their electric service, a price that is consistently among the top 10 lowest cost states in the country.

In recent years, these electricity prices are being strained not only in Nebraska, but across the country. A number of factors are responsible for this cost pressure including rising fuel costs, which include a transportation component, needed to generate electricity. Since 2006, prices for coal and uranium have increased more than 50 percent. Another challenge is an aging utility infrastructure. In many cases, equipment and facilities need to be refurbished or replaced to ensure reliability. Over the past few years, NPPD has invested more than $1 billion in plants and facilities to maintain reliable electric service.

“Keeping rates low and electric service reliable are important components of NPPD’s mission,” said Vice President and Chief Financial Officer Traci Bender. “For the past several years, balancing these goals has been a challenge, but we are committed to running the organization as efficiently as possible.”

To see how NPPD and Nebraska’s electricity prices compare first hand to other common purchases, click this “Behind the Outlet” link.