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LES may end surcharge earlier than expected

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By ALGIS J. LAUKAITIS / Lincoln Journal Star

Tuesday, Oct 16, 2007 - 12:24:56 am CDT

With winter waiting in the wings, the Lincoln Electric System could give its customers a small break on utility bills.

The LES Administrative Board is expected to vote Friday on ending a temporary 5.5 percent surcharge on electric bills, two months earlier than expected.

Residential customers have paid about $4 more on monthly bills since March to cover about $9.8 million in extra power costs due to a winter ice storm that hit central Nebraska and crippled the state’s high voltage power transmission system.

Story Photo
The LES Administrative Board is expected to vote Friday on ending a temporary 5.5 percent surcharge on electric bills, two months earlier than expected. (LJS File)

LES spokesman Russ Reno said Monday the administrative board’s budget and rates committee has endorsed a staff recommendation to end the temporary surcharge as of Oct. 31.

When it was approved in February by the administrative board and the City Council, the official expiration date was Dec. 31.

Through September, the surcharge has generated about

$6.9 million in revenues for LES.

LES management, in a resolution that will be submitted to the board for approval, gave the following reasons for ending the surcharge:

* Excellent operations at the utility’s power generation resources.

* On-time completion of the Walter Scott Jr. Energy Center Unit 4 in Council Bluffs. LES owns 12.6  percent interest in the coal plant.

* Reasonably priced wholesale power markets.

* Expectations LES will end the year in a “sound financial condition without the continuation of the temporary surcharge.”

Before the surcharge was approved, LES Administrator and CEO Terry Bundy said the temporary surcharge would help the utility when it sold about $100 million in bonds to pay for construction projects, including its share of the Council Bluffs coal plant along the Missouri River.

Reach Algis J. Laukaitis at (402) 473-7243 or alaukaitis@journalstar.com.


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Customer wrote on October 16, 2007 8:35 am:
" Another great job by LES, Thanks. You are one of the best run utilities around!! "
Bill Payer wrote on October 16, 2007 10:35 am:
" The LES surcharge tax was reactive. It was imposed on ratepayers when lack of planning showed a need to ramp up a rainy day fund. The story does not even detail how the money was spent! In 2007, The LES Board has minimal investment in solar, wind, geothermal or biomass projects. "
... wrote on October 16, 2007 11:35 am:
" If I remember right, LES had a rainy day fund. The City Council had them use it up instead of raising rates: http://www.journalstar.com/articles/2005/12/16/local/doc43a3035d80a41106388294.txt "
Carl wrote on October 16, 2007 3:43 pm:
" Here we go again, more people spouting off about that which they have no clue. LES is a public utility and has restrictions on how much money they can carry over from year to year. They exhausted this "rainy day fund" and had to go to the customers for more funds. At least they were truthfull about why they needed the money, and now that they have what they need, they are lowering rates back to pre-storm levels. "
Maybe; Maybe not wrote on October 16, 2007 3:52 pm:
" It's all fine and dandy, but I am waiting to see LES ask for a 4% increase a few weeks after to "offset rising energy costs". They will find a way to get it back. "

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