Officials with Nebraska Public Power District have announced that there is no rate increase planned for next year.
President and CEO Pat Pope said at Wednesday's board meeting, "NPPD will not need the two percent rate increase we have been proposing for both our wholesale and retail customers next year. We will not be proposing any rate increase for any of our customers in 2014."
He says strong summer revenue streams and expense cuts have eliminated the need for any rate hikes. The reduction of nearly 50 jobs was part of the utility's expense cuts.
Additionally, more than 100 employees took advantage of a voluntary early retirement program offered earlier in the year.
In July NPPD said it would be lowering its rate increases to 2 percent next year from an earlier forecast of 3.5 percent. The 2 percent increase would have cost an average retail customer using 1,000 kilowatt hours a month between $2 and $3 more each month.
"In the past, cost
pressures have forced us to raise rates. Today, we are in a period where
rigorous efforts to eliminate unnecessary expenses and slightly less cost
pressures are giving NPPD an opportunity to avoid a rate increase," Pope explained further why the rate increase is not needed.
Pope says that though NPPD is committed to no rate increase for next year, the company will continue to work to reduce costs where possible.