The Dawson Public Power District Board of Directors reviewed a cost-of-service study at its December Board Meeting, the Nebraska public power utility reported.
The board ensures that Dawson PPD’s rates are fair, affordable, and sustainable for the long term, Dawson PPD said.
To achieve this goal, the District hired a specialized contractor to review the current rate structure. An overall rate increase is not needed for 2025.
While the current rates provide the proper amount of revenue, the board is reviewing options for new rate classes and revenue neutral changes to existing rates.
The contractor considers various factors when evaluating Dawson PPD’s current rates and any proposed changes, including operating expenses, plant additions, lender requirements, and cash general funds.
“Dawson PPD’s Board of Directors prioritizes sound financial management by aiming to self-fund nearly 70% of new plant investments. This strategic approach ensures the District maintains a strong financial position and minimizes reliance on bonds,” the utility said.
Revenue neutral rate options were presented for the irrigation rate.
The board will vote on rates in 2025.
