Barn and grain bins at dawn, near Roca
0517

Announcements

  • JACO Construction and Midwest Pole Inspections are currently working on inspections of the District's poles and transformers.  To learn more, click here OR check out our Facebook page!
  • May is Electrical Safety Month!  "Like" us on Facebook for electrical safety tips and reminders.
  • Beginning June 1, 2012 the office hours at the Norris Public Power District Roca office will be 8:00 a.m. -  4:30 p.m. Monday through Friday.
  • The Norris District performs courtesy calls to customers regarding account information ONLY if we have written consent on file. Click here to sign up.
  • Would you like to recieve OUTAGE INFORMATION via email or text message?  Click here to sign up & for more information!

Message from Interim General Manager Jay Schulz

2012 Electric Rate Increase 

As a public utility, Norris Public Power District sets customer electric rates at a level to generate enough revenue to cover costs. This includes expenses for purchased power, operations, maintenance, and administration. In addition, Norris must generate enough revenue to provide for capital improvements and investments into electric plant facilities. Fortunately, since Norris is publicly owned, it avoids the added cost of providing a return on investment that is required for investor-owned utilities.

Purchased power costs account for over two-thirds of Norris revenue requirements. Nebraska Public Power District (NPPD) has announced effective January 1, 2012, they intend to raise electric rates to their wholesale customers, including Norris by 6.5 percent. NPPD provides 98 percent of the District’s power requirements as outlined in a long-term agreement between the two parties.

According to NPPD, 4.0 percent of the 6.5 percent increase is due to an increase in fuel and transportation costs to generate electricity, while 2.5 percent is due to an increase in debt payments for capital investments in electric system plants and facilities. Since 2006, prices for coal and uranium have increased more than 50 percent. In 2012, NPPD will incur a 75 percent cost increase in coal transportation alone. Also in recent years, NPPD has invested more than $1 billion in plants and facilities to maintain reliability.

Using projected energy sales for 2012, the 6.5 percent NPPD rate increase by itself will result in an increase in purchased power costs to Norris of $2.7 million. In order to cover the additional purchased power costs of $2.7 million, Norris will need to increase revenues from its wholesale and retail customers by 4.5 percent.

Typically, the annual Norris customer rate increase will not only include an increase for purchased power costs but also to a lesser extent an increase for operating, maintenance, and administrative costs. However, due to favorable operating results over the last year, the District will not be increasing electric rates above the 4.5 percent required to cover the increase in purchased power costs.

At the November 3, 2011 Board meeting, the Directors approved an overall wholesale and retail electric rate increase of 4.5 percent effective January 1, 2012. The actual rate increase for each customer classification may vary slightly based on a cost-of-service analysis, which fairly and reasonably allocates costs to each customer classification.

Overall, Nebraska has consistently ranked in the top 10 for lowest electrical rates in the United States. Within Nebraska, Norris electric rates are currently lower for all customer classifications than the average electric rate charged by other rural power districts. Norris is proud to serve our customers and strives to keep customer rates low while providing high quality, uninterrupted service to its customers.

Norris Public Power District ©2012