Minden City Council Approves New Electrical Rate Hikes, More To Come
Minden City Council approved resolutions 1576, 1577 and 1578 to adjust residential, commercial and industrial, as well as directional and area lighting electrical rates at their meeting on Monday, March 5.
Effective January 1st, NPPD passed on a 6.5% rate increase to their wholesale customers. Stan Clouse from Nebraska Public Power District, explained that, due to an aging infrastructure, NPPD has been forced to invest in capital in recent years.
They also have transformers approaching the end of their life cycles. And new coal and fuel contracts are adding to the operational costs.
Clouse said transportation costs alone are up 75 percent from the new coal contract. NPPD projections include rate increases of four, three and three percent over the next three years.
They are also projecting a four percent increase on their retail rates to go with an average 6.5 percent wholesale rate hike.
Clouse indicated some cities have used cash reserves to offset the rate increases, but City Administrator Matt Cederburg did not expect that to be an option for Minden.
“You can never have enough cash reserves.” Cederburg said, “They have been dwindling down with costs exceeding cash coming in.” Cash flow going out has exceeding incoming cash for the last four years.
Council Member Larry Evans said, “We probably do not have any cash reserves.”
Council Member Michael Kleen added, “We are still operating a 40-year-old underground transmission line, which could go anytime.”
For the full story, check out The Minden Courier