No Rate Increase for 2014
Earlier this year the District's wholesale power supplier NPPD announced it would not be asking for a rate increase this year. Upon completion of cost projections for our 2014 budget, Management will not recommend any rate adjustment to SWPPD's customers either.
This follows a series of annual rate increases dating back to 2007 that were necessary to keep up with the escalating costs of, fuel, and materials. The cost of coal doubled during that period caused by increased transportation, and regulatory costs. Power costs make up nearly 65% of the expenses for SWPPD.
Public power utilities charge rates based on actual cost to provide service, rather than a guaranteed return to investors. Revenues received are used to pay operating expenses and make necessary investments in maintenance, construction, and system upgrades.
Nebraska’s Public Power utilities work hard to avoid rate increases. Uncertainty associated with environmental regulations will continue to affect future costs. We encourage you to keep informed of the regulations being proposed nationally and statewide.
Aside from regulatory pressures, SWPPD has stepped up our communications with customers about steps they can take to lower their overall electric usage and thus their monthly electric bill. For tips, visit our website at www.swppd.com. We also offer direct incentives for participation in the EnergyWise program in partnership with Nebraska Public Power District. Those incentives can also be found on our website and as always, feel free to call the office directly.
SWPPD's rates remain among the lowest in the nation at less than 8 cents per kilowatt hour compared to the national average of around 10 cents per kilowatt hour. It is SWPPD's mission to serve our highly-valued consumers in the most reliable and efficient manner possible.
Southwest Public Power District, providing powerful solutions for changing times.