Decisions about wholesale power supply are among the most important responsibilities of our local Board of Directors. With that responsibility in mind, the Board continues to carefully evaluate all available wholesale power options to ensure long-term reliability, affordability, and flexibility for our district.
Last July, Nebraska Public Power District (NPPD) offered a new 35-year wholesale power contract to its customers. However, after thorough review and discussion, our Board determined that remaining on the existing 2016 contract best serves the interests of our customers at this time. Three other districts have reached the same conclusion. The current contract has a 20-year term and remains in effect through 2035, allowing the Board to preserve options while closely monitoring future developments.
A wholesale power contract is a long-term agreement between a local utility (like our district) and a power supplier, such as Nebraska Public Power District (NPPD). Through this type of contract, the utility agrees to purchase electricity over a set period of time. Because these contracts often span decades, they play a critical role in shaping future electric rates, system reliability, and the flexibility a utility has to respond to changes in the energy market. The energy landscape is quickly changing, and we want to best position ourselves for future opportunities to serve our customers at low cost with local decision-makers.
Over the past year, both NPPD and Perennial have continued working together to assess the future of electric power in Nebraska. As part of this process, the Board has reviewed NPPD’s plans to add new generation near the Sheldon and Beatrice Power Stations to support grid stability and meet growing demand across the state. These additions are necessary, but they also carry significant costs that factor into the Board’s ongoing evaluation of wholesale power strategies.
Wholesale power costs are projected to increase by approximately 6-8 percent annually over the next five years due to inflation, new generation investments, and continued grid maintenance. Understanding these trends allows the Board to make informed decisions that balance reliability with cost impacts on our customers.
As part of our forward-looking approach, we recently completed strategic planning focused on improving service and supporting future growth. We look forward to continuing to serve our existing customers and welcoming new loads—both large and small—into our service area.
Our updated mission statement reflects this commitment:
“Safe and Reliable Energy. Trusted Service and Commitment for Generations.”
With the leadership of our local Board of Directors, and the dedication of our employees, we will continue making thoughtful decisions that benefit our customers today and well into the future.
