Generator — Winter 2021

pReSIDeNT’S MessAGe
Loup’s retail rates among
lowest in state and nation
For the fourth consecutive year, the District is
planning no change to retail rates. This really
is a testament to how hard District employees
and the District’s Board of Directors work to
manage expenses.
The District has seen a number of events that
could have negatively affected our retail rates
over the past several years: the new hydroelectric
license in 2017 (which reduced the amount
of generation produced from the hydroelectric
system), the mid-March 2019 storm event that
created havoc on the canal system (as well
as other areas of the District), and finally the
effects of the COVID-19 pandemic in 2020.
Each of these events has affected the District
and our customers in different ways, but in
each case, the District has managed to keep
our overall rate levels unchanged for our
customers.
A lot of this has to do with the interaction the
District has with our power supplier, Nebraska
Public Power District (NPPD). Almost all of
the energy used by the District’s customers
is purchased from NPPD. Approximately
70 percent of the District’s annual expense
budget is purchased power costs from NPPD.
Therefore, it is important that the District
works closely with NPPD to understand how
its production costs are being managed.
We are fortunate that NPPD’s headquarters are
located in Columbus. District employees have
daily interaction with NPPD, and we see NPPD
employees about town as we perform our daily
activities. Having this friendly interaction
makes it easier to deal with NPPD one-on-one
when there are business concerns.
Knowing how NPPD’s costs are derived is
important. Power supply is a complex activity.
NPPD’s management has been very active
in helping wholesale customers understand
how costs are changing and what we can do to
impact cost changes for NPPD.
District management and the Board of
Directors have worked hard to understand this
complexity and to help manage this to control
District costs for our customers.
As we continue to move forward in 2020
and 2021, the overall effects of the COVID-19
pandemic will continue to affect the expenses
of the District. How this may impact retail
rates beyond 2021 is yet to be seen, but rest
assured, the District is working hard to keep
retail rates as low as possible.
The District’s Board of Directors is very proud
of this. We will strive to continue this ranking
in the future.
Until next time, be happy and stay safe!
NEAL SUESS
President/CEO
Based upon the latest American Public
Power Association survey, the District
is in the lowest tenth percentile
for retail rates both
statewide and nationally.
WINTER 2020 | 3