The Lincoln Electric System’s Administrative Board’s Finance Committee proposed a 2026 budget that includes a 3% systemwide increase to retail electric rates during LES’ Administrative Board meeting on Sept. 19.
“This proposed adjustment is largely driven by rising power costs and transmission expenses — factors that are primarily beyond LES’ control,” said Emily Koenig, LES vice president of Financial Services and chief financial officer. “However, we can control how we manage our internal spending, so we are re-evaluating how we allocate resources within our utility.”
To help minimize the impact on customers, LES is recommending internal budget reductions, including delaying or scaling back non-essential projects. These cost-saving measures have allowed LES to reduce the proposed rate increase from likely being more than 4%.
“As a public power utility, we take our responsibility to our community seriously,” Koenig added. “We’re committed to delivering safe, reliable and sustainable electric service while being mindful of the financial impact on those we serve.”
If the rate adjustment is adopted, an average LES residential customer using 1,000 kilowatt-hours per month would see an increase of approximately $3.22 on their monthly bill. Other rate classes would see adjustments varying from 0.8% to 10% based on the cost of serving each class.
The proposed budget totals $713.7 million, including the operating budget of $328.8 million and the capital budget of $384.9 million.
A public meeting on the proposed 2026 LES budget and rates will be held on Oct. 9. Throughout October, LES staff will continue meeting with customers and community groups to share information and gather feedback.
The LES Administrative Board is scheduled to vote on the budget at its Oct. 17 meeting. If approved, the proposal will move to the Lincoln City Council for consideration at a public hearing in November. New rates would take effect Jan. 1, 2026.
The proposal follows a 4% mid-year rate adjustment implemented on July 1, 2025, necessary to help fund new generation resources needed to meet evolving regulatory requirements. That adjustment marked LES’ first mid-year rate change in nearly two decades.
“As our community’s sole electric utility, we’re focused on maintaining a resilient system while keeping rates affordable and equitable,” Koenig said. “The proposed 2026 budget and rate adjustments support the long-term financial health of LES and ensure we can continue to dependably serve our customer-owners.”
