The Lincoln Electric System Administrative Board approved a resolution to amend the 2025 LES Budget and implement a 4% systemwide rate adjustment to fund additional generation for the utility.
LES’ regional transmission organization, the Southwest Power Pool, has developed new resource adequacy regulations that outline heightened generation requirements for utilities and are designed to help ensure system reliability. To avoid significant financial penalties under these new regulations, LES says they must have enough capacity to meet its peak load plus an additional reserve margin.
To comply with the rules, LES completed a power purchase agreement with Central Nebraska Public Power & Irrigation District for the 22-megawatt Jeffrey Hydropower plant. Additionally, LES plans to add two natural gas combustion turbines at Terry Bundy Generating Station, which will add 100 MW of capacity.
LES says the mid-year budget amendment will fund these resource additions, and help avoid longer lead times and increased prices.
The Lincoln City Council will now consider the proposed budget amendment and rate adjustment at a public hearing. If approved, rate changes will become effective July 1, 2025.
If the rate increase is adopted, an LES residential customer using 1,000 kilowatt-hours per month will see an increase of approximately $4.03 on their monthly bill. Other rate classes would see bill increases varying from 3% to 5% based on individual customer usage.
Customers can find more information on the proposed budget changes at LES.com/Budget.