The Lincoln Electric System Administrative Board’s Finance Committee proposed a 2027 budget that includes a 3.5% base retail system rate adjustment during a recent board meeting.
The proposal is part of LES’ long-term strategy to maintain reliable electric service while keeping rates as stable and predictable as possible for customers, the Nebraska public power utility noted.
The proposed rate adjustment aligns with LES’ previously communicated expectation that modest annual rate increases may be needed in the coming years.
By gradually addressing rising costs and spreading the impact of significant investments in the regional transmission system over time, LES aims to reduce the likelihood of larger rate increases in the future while providing customers with greater budget certainty, it said.
“Every rate decision begins with the people we serve,” said Emily Koenig, chief financial officer. “By planning ahead and making measured investments today, we can continue providing reliable service while helping keep future costs manageable for our customer-owners.”
If approved, the average residential customer using 1,000 kilowatt-hours per month would see an increase of approximately $4 per month. Adjustments for other customer classes would vary based on the cost of providing service to each class.
LES continues to focus on affordability as it plans for the future. According to the utility’s long-range financial forecast, projected rate adjustments remain within LES’ guidance range of 3% to 5% annually while supporting system reliability, essential infrastructure investment and financial stability.
The proposed budget totals $795.3 million, including an operating budget of $369.6 million and a capital authorization of $425.7 million. The operating budget reflects increases in power supply and transmission costs, which account for most of the year-over-year increase.
Customers will have opportunities to learn more about the proposed budget and rates during two public meetings.
In addition to discussing the proposed budget and rates at these public meetings, LES will provide information about ongoing resource planning efforts, including the evaluation of a potential wind or solar generation project within the Southwest Power Pool footprint.
The project is being evaluated as an opportunity for LES to capture savings that won’t be available later, replace expiring renewable energy agreements and support LES’ goal of achieving net-zero carbon emissions by 2040.
Any potential generation project would likely not come online until after 2027, meaning it would have no impact on the proposed 2027 budget and rate adjustment. If a project does move forward, LES would carefully plan for its costs with a focus on keeping rates as stable and manageable as possible for customers.
The LES Administrative Board is scheduled to take action on the proposed budget and rates at its Oct. 16 meeting. If approved, the proposal will move to the Lincoln City Council for consideration at a public hearing on Nov. 2. New rates would take effect Jan. 1, 2027.
"As our community's public power utility, we're committed to balancing affordability with the resources needed to reliably serve Lincoln for decades to come," Koenig said. "We're focused on making thoughtful decisions today that will benefit our customers both now and in the future."
