Nebraska Public Power District is preparing to begin 2016 with new power supply contracts in place with a majority of its wholesale customers.
“We are nearing the end of the contract renewal process,” said President and CEO Pat Pope. “We are pleased with the support received from customers who have signed new agreements with us, and while we continue discussing options with a few customers, we are excited to begin the new year with a renewed commitment to providing reliable and affordable electricity over the long-term.”
Pope reported, as of Dec. 31, 2015, NPPD has renewed agreements with customers representing approximately 92 percent of its total annual wholesale revenue. The new agreement, which takes effect January 1, 2016, provides customers access to long-term, cost-based electricity over the next 20 years. The contract includes a financial performance standard incenting NPPD to maintain rates in the best quartile of a nationwide benchmark for the duration of the contract.
“We know of no other wholesale supply agreement in the country with this type of financial provision and commitment to future rates,” said Pope. “Through these contract renewals, customers have put their trust in NPPD and public power.”
Another new provision available in the new contract is the ability for a wholesale customer to add up to 10 percent of local renewable energy.
“When it comes to power supply options, we understand our customers want choices,” said Pope. “With our customers, we serve more than 600,000 Nebraskans statewide with energy produced by a diverse generation resource mix. In fact, nearly 60 percent of the energy provided to Nebraska electric customers from NPPD is carbon-free, which significantly betters both regional and state averages. Under the new agreements, customers now have even further options to invest in their own, local renewable generating portfolio if they so desire.”
Customers who do not renew an agreement are expected to receive full or partial power supply from NPPD through 2021. NPPD anticipates electric load lost due to customers leaving will be replaced with new loads such as Monolith Materials, a company with plans to bring a new industry to Nebraska in the near future.