Lincoln City Council approves 4% rate hike for LES, effective July 1

LINCOLN, Neb. (KLKN) — The Lincoln City Council on Monday unanimously approved Lincoln Electric System’s 4% rate increase.

The council voted 7-0 to allow LES to increase its rates in the middle of the budget year.

LES said it needs the revenue to meet regulations from its regional transmission organization, the Southwest Power Pool.

The power pool has implemented new resource adequacy regulations that require utilities to generate more electricity to help ensure system reliability.

To avoid significant financial penalties under these new regulations, LES said it must have enough capacity to meet its peak load, plus an additional reserve margin.

SEE ALSO: LES approves 4% rate increase to fund ‘urgent’ boost in energy production

“We understand that a mid-year rate increase can be challenging for customers,” Emily Koenig, LES chief financial officer, said in a May press release. “An increase is needed to begin funding turbine expenditures, which were not included in this year’s budget. We must move quickly to procure the turbines to reduce the risk of increased costs for customers.”

The average LES customer, using 1,000 kilowatt-hours per month, will see an increase of about $4.03 on their monthly bill, according to LES.

The rate increase will now go into effect on July 1.