In the past several years, aging power plants and facilities, economic inflationary factors and new regulatory pressures for existing and future energy supply resources have put the electric industry, as a whole, in a tight spot when it comes to managing costs. Despite these factors, NPPD is committed to working proactively with customers to find solutions that best minimize future cost increases and provide reliable and affordable electric service.

We have implemented energy efficiency programs to help consumers manage rising electricity costs and continue to heavily scrutinize our budgets. This means we are constantly evaluating our inventory levels and identifying areas of cost containment, including reducing staffing levels, when possible. In the spring of 2011, we saw the early retirement of 77 employees through a voluntary program, and we continue to manage staffing levels through additional retirements and attrition.

Nebraska’s publicly controlled utilities have operated successfully for nearly 125 years with a model that is unique to this state. Nebraska is the only state in the nation that serves its electric customers entirely through public power entities. In Nebraska, it’s the public and electric utility customers, like you, that provide control over their local utility. It’s ultimately your power.

This business model continues to work well. Electricity prices in this state remain a good value. NPPD’s electric rates are significantly below the national average and competitive regionally as well. And while keeping rates as low as possible for customers is our main objective, so is being reliable. Sometimes, to achieve this balance, rate increases become necessary. While investments to our infrastructure the past several years have been substantial, it’s important for NPPD to prepare for the future energy needs of our customers. To do this, our focus remains clear. We are committed to providing the reliable and affordable electric service you expect and deserve.

Average Retail Price by State Map, 2010