Current | LES Customer Newsletter Current - October 2016
Current
1040 O Street, P.O. Box 80869
Lincoln, NE 68501-0869
8 a.m.-5 p.m., Monday-Friday
Lincoln Electric System
LES proposes rate
adjustment
LES’ CUSTOMER NEWSLETTER
OCTOBER 2016
Customer Service: 402.475.4211
24/7 Bill Pay: 866.462.8432 - Toll Free
Power Outage: 888.365.2412 - Toll Free
Nebraska811 (call before you dig): 811 - Toll Free
decreased wholesale market
revenues, driven by low natural
gas prices. Power costs are
typically the single largest driver
of rates.
LES recently refinanced
approximately $120 million in
revenue bonds which resulted
in a net present value savings of
about $19 million. This refunding,
combined with internal cost
management measures, helped
to significantly lower the rate
adjustment.
LES also continues its
restructuring of electric rates
to properly allocate the fixed
charges and variable energy
charges associated with supplying
power to customers.
As part of this process, LES
is proposing to segment the
facilities charge for the residential
rate class into three levels based
on average monthly electric
usage. This allocation provides
a more equitable distribution of
After two years with no rate
adjustment, LES is proposing an
increase to retail electric rates.
Residential customers will see
an average rate adjustment of 3.5
percent, while the system average
adjustment will be 3 percent. LES’
rate philosophy is to equitably
allocate costs to customers with
the goal of maintaining rates for
each class within 5 percent of the
cost to serve the customer class.
This means that while the
system average rate adjustment
is 3 percent, individual rate
classes will see adjustments
both above and below the
average. Even with the proposed
adjustment, LES electric rates
are projected to remain among
the lowest in the country.
The rate adjustment primarily
is due to increases in net power
costs, which are related to
RATE ADJUSTMENT BY CLASS
2015
2016
2014
Residential
General Service
Large Light & Power
2.9%
1.2%
4.4%
0
0
0
System average
2.9%
0
0
0
0
0
Prop.
2017
4-yr
avg.
3.5%
0.7%
4.0%
1.6%
0.5%
2.1%
3.0%
1.5%
LES’ budget & rates
meeting Oct. 6
At its Oct. 21 meeting,
the LES Administrative
Board will take action on the
proposed 2017 budget and
rates. Board members will
consider customer comments
and questions presented at
LES’ public meeting on Oct.
6 at 7 p.m. at LES’Walter A.
Canney Service Center (27th
& Fairfield).
Following Board approval,
the proposed budget will be
considered by the Lincoln City
Council.
Unable to attend the public
meeting? Information is
available on LES.com.
fixed facility-rated costs between
high- and low-use customers.
LES residential customers
using 1,000 kilowatt-hours pay
$94, which is 29 percent less than
a national study average of $132.
LES industrial customers using
1,000 kilowatts and 400,000 kWh
pay $29,969, which is 22 percent
less than the national survey
average of $38,537.
For more information about
these changes, contact LES at
402.475.4211 or finance@les.
com.
p: 402.475.4211 · LES.com