NPPD To Raise Wholesale Rates?

Nebraska Public Power District will be seeking a 6.5 percent increase in rates it charges its wholesale customers. NPPD says the money is needed to offset drops in revenue and pay for capital improvements.

NPPD President Ron Asche says plummeting prices for natural gas is causing an $18.4 million shortage in projected revenue for electricity sales over various grids to out-of-state utilities.

Spokesman Mark Becker said Monday that the loss would be covered by NPPD reserves in the rate stabilization fund, which must be replenished.

Becker says a rate increase for retail customers is being studied as well.

NPPD's sells electricity wholesale to 52 towns and 25 rural districts and cooperatives. It serves about 80 communities at the retail level.