Lincoln Electric System proposes 3% rate increase in 2026 budget

LINCOLN, Neb. (KLKN) – The Lincoln Electric System proposed a systemwide increase to its electrical rates for 2026 on Friday.

LES’s administrative board’s finance committee introduced the 2026 budget, which includes a 3% rate increase.

Emily Koenig, LES vice president of financial services and chief financial officer, said the adjustment is “largely driven by rising power costs and transmission expenses.”

“However, we can control how we manage our internal spending, so we are re-evaluating how we allocate resources within our utility,” she said in a news release.

To minimize impact on customers, LES is recommending “internal budget reductions,” which include delaying or scaling back on “non-essential” projects.

LES said those measures are keeping the proposed rate increase from surpassing 4%.

“As a public power utility, we take our responsibility to our community seriously,” Koenig said in the release. “We’re committed to delivering safe, reliable and sustainable electric service while being mindful of the financial impact on those we serve.”

If the proposal is adopted, an average LES residential customer would see an increase of about $3.22 on their monthly bill, according to officials.

A public meeting on the proposed LES budget, which totals $713.7 million, will be held on Oct. 9 at the Kevin Wailes Operations Center in Lincoln.

The LES Administrative Board will vote on the budget at its Oct. 17 meeting.  If approved, the proposal will go to the Lincoln City Council for a public hearing for its consideration in November.

Earlier this year, the Lincoln City Council unanimously approved a 4% rate increase.  LES requested the funds to meet regulations from its regional transmission organization, the Southwest Power Pool.