LES proposes midyear rate increase of 4%

LINCOLN, Neb. (KLKN) — The Lincoln Electric System said Thursday that it could raise rates this year to pay for more energy generation.

The administrative board’s finance committee is proposing an amendment to the 2025 budget that would raise rates by 4%.

The utility said it needs to increase its energy production to meet the requirements of the Southwest Power Pool, the regional energy grid that LES is a member of.

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To do so, LES will buy 20 megawatts of hydropower from the Central Nebraska Public Power & Irrigation District.

Plus, the utility will add two natural gas combustion turbines at the Terry Bundy Generating Station northeast of Lincoln.

“We don’t take lightly the decision to propose this mid-year rate increase,” Emily Koenig, chief financial officer, said in a press release. “We understand that this comes at a time when there are other economic pressures facing customers. But given the importance our community places on reliability, and the need to act urgently to minimize additional cost risk from increasing demand for generation assets, we must move forward with this action as significant project costs will be incurred this year.”

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If the increase is approved, a residential customer using 1,000 kilowatt-hours per month would see their monthly bill go up by $4.03.

The LES administrative board will vote on the proposal at its May 16 meeting.

After that, it would need to be approved by the Lincoln City Council.

The new rates would go into effect July 1.