Nebraska AG Mike Hilgers sues OPPD for proposed changes at North Omaha Station

LINCOLN, Neb. (KLKN) — Attorney General Mike Hilgers on Thursday filed a lawsuit against Omaha Public Power District regarding its planned refueling and retirement of electric generation units at North Omaha Station.

According to Hilgers, OPPD admits that their proposed changes are being pursued for reasons that conflict with the core mission of public power established by the legislature.

“Public power providers are supposed to prioritize affordability of the electricity they produce and reliability of the electric grid they oversee,” Hilgers said in a press release.

Instead, in a time of rapidly increasing demand for electricity, Hilgers said OPPD’s proposal will threaten grid reliability.

He also said it will create conditions where OPPD ratepayers will likely be subjected to higher costs.

“Public power providers should not achieve their self-imposed environmental goals by raising prices for Nebraska consumers,” said Hilgers. “The proposed changes at North Omaha Station do not align with the fundamental objectives outlined by the Legislature, undermining the promise of public power.”

Currently, North Omaha Station houses five generation units — two of which utilize coal, while the three others run on natural gas.

OPPD plans to retire the three natural gas units, reducing the station’s total output by 40%, according to Hilgers.

Hilgers said OPPD also plans on switching the two coal units to natural gas.

“It (OPPD) is pursuing this plan even though, by its own calculations, maintaining the status quo at North Omaha Station will save OPPD more than $40 million over the next five years and nearly $440 million over the next fifteen; savings that could be used to stabilize rates or even be passed along to consumers,” Hilgers said.

OPPD’s president said the plan is motivated “primarily by environmental considerations.”

Hilgers said North Omaha Station complies with all applicable state and federal environmental regulations.

This lawsuit is not about dictating or micromanaging OPPD’s operational strategies, according to Hilgers.

Instead, Hilgers said it seeks to ensure that OPPD adheres to its well-established, legislatively mandated public power mission: delivering reliable and affordable electricity to Nebraskans. 

“We are calling on the Court to issue an injunction that halts OPPD’s current plan to refuel and retire units at North Omaha Station because that plan is based on political objectives that deviate from its founding mission,” Hilgers stated.