Winter 2024 Generator

Board approves retail rate increase
The Loup Power District Board of
Directors approved a 3.5 percent retail
rate increase at its monthly December
meeting. The increase comes amid
increasing material prices and supply
chain issues.
“Even with the retail rate increase,
Loup’s retail rates remain among the
lowest in Nebraska and the nation,”
said Loup Board Chairman Steve Heesacker.
Loup’s overall rates are 30.3 percent
below the national average and 9.5
percent below the Nebraska average
based on data from a 2021 American
Public Power Association survey. This
places Loup in the lowest tenth percentile
both statewide and nationally.
Loup’s average residential customer
will see an annual increase of about
$60 for electricity costs, although the
exact amount depends upon seasonal
rates and usage.
Before voting to increase retail
rates, Board members reviewed
current rate levels for all classes of
customers as well as budgeted revenue
and expenses. In addition, management
performed a retail cost-of-service
study.
As part of this review, the Board
analyzed purchased power costs
from Nebraska Public Power District
(NPPD), Loup’s wholesale power supplier,
and anticipated future costs.
Loup has seen an increase in material
costs in recent years coinciding
with nationwide supply chain issues
and inflation pressure. In addition,
Loup is projecting a large increase in
construction projects in the next six
years due to anticipated load growth.
Rich Aerni, chairman of Loup’s Rate
Committee, said the Board worked
with management to successfully keep
rates steady between 2018 and 2022.
Loup was able to do that despite the
2019 storm that damaged the District’s
hydroelectric system and the
impact of the COVID-19 pandemic in
2020 and 2021. Loup is still working
to recover approximately $5 million
in construction costs from the federal
government for repairs made to the
hydroelectric system from the 2019
storm. This has affected the District’s
cash position.
“With the increase in construction
and material costs, the Board
felt it was prudent to implement this
increase in retail rates to maintain
Loup’s financial health,” Aerni added.
Energy or kilowatt-hour (kWh)
usage and seasonal usage patterns
are always the determining factor in a
customer’s bill. Customers in all rate
classifications have opportunities to
reduce their costs by taking advantage
of numerous programs offered by
Loup.
These programs include energy
incentives and home energy audits.
For more information on Loup’s retail
rates and energy-saving programs,
visit Loup’s website at loup.com.
Average Price for Residential Electricity October 2023, in cents per kWh
Loup’s
retail rates
are
30.3%
below the
national
average and
9.5%
below
Nebraska’s
average.
CA
26.7¢
WA
11.3¢
OR
13.2¢
NV
14.6¢
AK
24¢
ID
12.2¢
UT
11.2¢
AZ
14.5¢
MT
13¢
WY
12.5¢
CO
14.5¢
NM
14.5¢
HI
42.7¢
ND
11.7¢
SD
13¢
NE
11.8¢
KS
13.7¢
TX
14.7¢
OK
13.3¢
MN
15.3¢
IA
13.4¢
MO
12.4¢
AR
12.7¢
WI
17.1¢
IL
15.8¢
MS
LA
13.7¢
11.9¢
MI
19.1¢
IN
15.2¢
KY
13¢
TN
12.6¢
AL
15¢
VT: 22.1¢
NH: 25.8¢
MA: 28¢
RI: 31.8¢
CT: 29¢
OH
16¢
Residential Average Price
(cents per kilowatt-hour)
More than 14¢
Less than 14¢
PA
18.4¢
14.5¢
GA
13.8¢
FL
15.5¢
NY
22.7¢
WV
VA
15.1¢
14.3¢
NC
14.8¢
SC
ME
29.1¢
NJ: 17.5¢
DE: 17.5¢
MD: 18.4¢
DC: 18¢
Source: U.S. Energy Information Administration. Numbers rounded to nearest tenth of a cent.
WINTER 2024 | 11
Source: U.S. Energy Information Administration: Average Price of Electricity by State, October 2023