Electric rates for retail and wholesale customers of the Nebraska Public Power District will increase January 1, 2011.
The Cassgram reports action taken by the NPPD Board of Directors raises rates for NPPD’s wholesale customers (other Nebraska utilities and municipalities that purchase power from NPPD and sell to their end-use or retail customers) will increase an average of 9.7 percent. NPPD’s retail customers (those who receive a bill from NPPD directly) will increase an average of 11.4 percent.
The increase to NPPD retail residential customers, using 1,000-kilowatt hours per month, equates to approximately $12 a month.
An NPPD news release says revenues from the increases will be used to support investments in NPPD’s power plants, high-voltage transmission lines, and distribution facilities. Major factors driving the wholesale and retail rate hikes include increases in fuel costs, two major generation plant outages in 2011, and a decrease in revenues from energy market sales that offset fixed costs of NPPD’s generation facilities. Retail rate increases are also affected by increased delivery costs due to power line improvements and the installation of new electronic meters.