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Mayor blasts proposed LES rate increase

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By DEENA WINTER / Lincoln Journal Star

Thursday, Jul 10, 2008 - 09:04:32 pm CDT

It’d be tough to find two more mild-mannered soft-spoken gentlemen to go after each other in public.

But there they were — the mayor and the head of city-owned Lincoln Electric System — having a public smackdown Thursday over news the electric company may seek up to a 12 percent rate hike.

Mayor Chris Beutler lashed out at LES officials for delivering a “broadside” to the city by telling him Tuesday they’ll likely need a “back-breaker” of a rate increase.

Story Photo
Mayor Chris Beutler

Lincoln Electric System's Terry Bundy responded in kind, accusing Beutler of “jumping the gun” and using the rate hike as a “scapegoat for city budget issues.”

LES officials say that they, like many other utilities, will need a substantial rate hike to cover a $9.3 million shortfall this year caused by skyrocketing costs to purchase, produce and deliver energy.

Saying he was deeply disappointed in the utility’s failure to inform him sooner, Beutler threatened to veto the rate increase, and said he will withdraw his proposed 1-cent city property tax rate increase.

“Government cannot operate in isolation from the other financial pressures faced by Lincoln families,” Beutler said during a news conference Thursday.

Two hours later, LES held its own news conference, at which Bundy seemed shocked by the mayor’s reaction to a rate hike that’s far from finalized.

“Mayor Beutler has unfortunately chosen to jump the gun and turn an open, public, collaborative process into a political one,” Bundy said.

He said LES has not deviated from its normal practice of giving the mayor a heads-up as soon as feasible. He said it became evident in June that wholesale power costs were significantly higher — about 45 percent higher than LES projected. A series of meetings with the LES administrative board’s budget and rates committee ended Monday, and LES officials met with Beutler on Tuesday.

Bundy said Beutler was surprised at the news, but they had a good discussion. He said it was uncharacteristic for a mayor to “jump in front of cameras” rather than allow the normal process to play out. LES increases must be approved by the LES administrative board and the City Council, via a series of meetings and hearings.

A 12 percent LES increase would increase the average Lincoln homeowner’s electric bill by $108 a year and take effect Sept. 1.

Beutler said he would veto a 12 percent LES increase and would not approve any increase until LES shows it has cut its budget.

“I simply cannot in good conscience quietly accept an increase of that magnitude in light of today’s economy,” he said. “They have asked for a huge rate increase without, to my knowledge, offering any significant corresponding cuts in expenses.”

Bundy questioned whether Beutler even has the authority to veto a rate increase; he said the City Council is charged with approving rate increases.

And he took offense at Beutler’s assertion that LES hasn’t been fiscally responsible, outlining some of the operating costs it has cut over the years, including closing a bill payment center.

While personnel costs eat up more than 70 percent of the city’s revenue, power-related costs eat up a similar percentage of LES’ costs, Bundy said.

“These are costs that are being incurred by LES customers,” he said. “We need to have revenue to pay the bills.”

He said LES’ travails are being experienced by the industry nationwide.

“For the past 20 consecutive years, LES rates have been in the lowest 10 percent in the country,” Bundy said. “We expect them to remain competitive.”

Beutler said he would not have sought a property tax increase had he known of other governmental entities’ budget increases and the proposed rate hike.

However, the City Council was already unlikely to go along with Beutler’s tax increase, and LES and council members speculated his Thursday announcement was an attempt to overshadow his flip-flop on increasing taxes.

But Beutler said resistance to a tax increase did not play a role in his decision to back down. Asked why he is withdrawing his tax increase if he plans to veto a 12 percent LES hike anyway, Beutler said: “Clearly we’re going to have a big (LES) increase, even if we succeed in knocking it in half.”

Rather than increase taxes, the City Council had been talking about dipping into a little-used $10 million Special Assessment Revolving Fund the city attorney recently ruled can be tapped for other needs.

Beutler wanted to use the money to create an economic development fund and repeatedly has urged the council to resist the temptation to use “one-time” revenue sources as temporary solutions to permanent budget gaps.

On Thursday, however, Beutler said he’s open to using the fund to balance the budget, even though he said it will likely lead to another budget deficit next year.

“It is not a decision I come to lightly,” he said. “I stand by my deep conviction that ending the structural imbalance between revenues and expenditures must be the ultimate solution to the city’s budget crisis.”

Bundy took a shot at the Special Assessment fund, saying, “Unlike the city, we don’t have a $10 million pot of money sitting around to cover these costs.”

He does, however, have a $4 million rate stabilization fund that could be tapped to offset rate increases. An LES subcommittee has recommended addressing some of the shortfall by using $1 million from that and cutting half a million dollars from its operational budget.

That would leave a $7.7 million shortfall, which a 12 percent rate hike would cover.

The LES administrative board will discuss that proposal July 18, hold a public hearing Aug. 5 and make a decision later that month. That recommendation then goes to the City Council.

Bruce Bohrer, executive vice president of the Lincoln Chamber of Commerce, said a double-digit electric rate increase would be “quite a shock to the business community.”

About two years ago, more than 20 of Lincoln’s largest employers — including Linweld, Goodyear and Nebco — successfully blocked a proposed flexible energy surcharge to deal with fluctuating energy prices.

Bundy noted that such a surcharge would have helped LES prevent precisely this type of situation.

Reach Deena Winter at 473-2642 or dwinter@journalstar.com.


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Sure Chris.... wrote on July 10, 2008 2:59 pm:
" you care about LES hiking their rate but you could care less about our taxes. Too little too late. "

 the usual.... wrote on July 10, 2008 3:06 pm:
" I'll have the usual, LES. Big rate increase crammed down my throat. Oh, but they MAY be able to get by on 9% or so. Oh, that FEELS so much better going down. Yeah we've seen the stupid trick with the 12% - ooops - OK - 8 1/2 % - there - is - that - better bait and switch routine several times now. It works every time cause we're all schmucks out here without the nerve to stand up for ourselves. Who owns this utility, anyway? Didn't they just get a whopper thru on us? "

 Little wonder wrote on July 10, 2008 3:10 pm:
" Several I know have their houses up for sale and are leaving. Typical
Lincoln, stab everybody in the back. Little wonder everybody leaves this
state. I have friends out of state telling me, its common knowledge
Nebraska is the poorest state in the nation and the highest taxed state.
Even the business people don't have the decency to work together, no
wonder this town hasn't and will NEVER grow. You name it, its the
most expensive in Nebraska!!!! "

 Anthony Giovanni wrote on July 10, 2008 3:12 pm:
" If anyone thinks this is the last "disclosure" that will come out of LES, prepare yourself! The city needs to conduct a thorough and independent audit of LES under Terry Bundy's leadership, or lack thereof. "Mr. Burns" has created an environment of poor morale, federal non-compliance on several levels and the creation of a bloated, over-paid and mediocre management team. "

 valdisfox wrote on July 10, 2008 3:17 pm:
" His heart's in the right place, and yes, he can, should and will veto anything above a modest hike. Yes, prices for everything have gone up, the dollar's gone down, blah blah blah... but to ask for a 12% hike at the consumers' expense when the rest of the city has had to make genuinely tough cuts and choices is akin to: "Whoa, sorry you lost your job last night, how awful for you... Oh, and can I still borrow 50 bucks to hit the casino?" Bad timing, and to ask for 12% means, in government playbook, you're expecting 4%. Pull the plug on it, Chris. :) "

 Thor wrote on July 10, 2008 3:20 pm:
" Go get 'em mayor. If this happens, I'll just give up on life in Lincoln. LES is beyond arrogant. And their reasons for this increase are????? "

 Utility worker wrote on July 10, 2008 3:25 pm:
" Lincoln's mayor clearly understands nothing about the utility industry. LES generates some of their power and purchases energy as well. While they may own a share in several coal fired plants, a portion of their generation comes from natural gas fired plants. Natural gas prices are driving the energy prices up nationwide, because there is a shortage of coal and nuclear plants and now utilities are forced to run gas powered stations to meet demand. Then there is the impact of mother nature. Nebraskans are used to power when they need it with no brown outs and at relatively low prices, unfortunately reliabilty doesn't always come at a cheap price. As I recall LES caught a lot of flack when they wanted to raise the rates several years in a row incrementally. Pay now or pay later... "

 Grundle wrote on July 10, 2008 3:29 pm:
" Oh cry me a river "Sure Chris..."! He cares about LES hiking their rates over a hundred dollars a year, and was asking for a MEAGER tax increase of $15 per year (on a $150k house). He's also demanding that LES, who's asking for a LOT more money per household than the City is, show what they've done to increase efficiency. If any entity is going to ask for more money, they should first prove they have done what they can to avoid an increase in fees. The City has done that, even though a few naysayers refuse to admit that the City has done everything it can to reduce costs. "

 LESter wrote on July 10, 2008 3:31 pm:
" That is quite a hike! LES is city owned, which means it is owned by the people, right? Do we have a say in this? I agree that they need to justify this. I have to wonder all those who were complaining about $15 a year on a TAX, will sit quite for this, saying it is necessary. If it were a TAX, I bet people would be really upset. "

 Whatever wrote on July 10, 2008 3:31 pm:
" Mayor Beutler should take some time and try to understand what is really going on. Politicizing this isn't going to to LES or us ratepayers any good. Trust the people that run LES to do their job (which they do well), and you get back to screwing up the rest of the City. "

 rrb wrote on July 10, 2008 3:34 pm:
" in the article he says "he will back away from his own proposed 1-cent increase in the city property tax rate" If we do the math some would rather pay the 1 cent tax increase on property than be hit with a 12 percent increse in our electric bills. Their going to get our money anyways and it will still hurt everyone in their pockets. "

 Soylent Green wrote on July 10, 2008 3:37 pm:
" So now what? The City and it's infrastucture continues to circle the drain AND utility rates increase? Where is all the forward thinking? Way to make those tough decisions Mayor! Keep the property tax increase but add another 4% to it AND make LES cut their budget to keep the rate increase managable. There, was that so tough? "

 Mike wrote on July 10, 2008 3:39 pm:
" What I think the mayor is saying is that asking for a $15/year increase isn't too much too ask but when added to the impact of the LES increase it is too much. I would like the Journal-Star to find out how much LES spends on advertising, providing funds to community projects, etc. that they don't actually need to spend to provide us electricity. I tried to find out without any luck. "

 Chris wrote on July 10, 2008 3:50 pm:
" Has anyone bothered to look at the rates at LES compared to rates in similarly sized cities, or gasp, at rates where private utility companies operate? If I were you I'd with hold comments until I did. We pay less than almost any other similar-sized community or larger. That being said, LES should have been more upfront about their budget position. I noticed that the Mayor's increase would have raised taxes for each household $15 per year. That truly is chump change in my opinion. If we didn't have a public electric company you wouldn't even hear about the increase, you would just have to stomach it. But keep complaining Lincolnites, heck even move away. We'll welcome you back if you ever are grown up enough to admit you were wrong. Lincoln is a great community with low crime, little pollution, great schools, and a low cost of living. What more can you want in a community. Some of you do need to move away so you can appreciate what you have. And to those that say Lincoln will NEVER grow: Get a clue. Lincoln has grown steadily for the last 15 years, at a rate that even outpaces Omaha. You are free to move if you'd like, so someone who actually appreciates what Lincoln has to offer can move in. "

 dewboy wrote on July 10, 2008 3:56 pm:
" This might get real interesting and I will tell you why. Good Ole Cook and the other Democrats have in the past sucked up to LES. We will see now that the other party rules the Council. Also this might just be a Hook and Bait deal also. "

 not this time wrote on July 10, 2008 3:57 pm:
" Normally I can stomach some of LES's increases due to the rise in energy prices, and in general I've been satisified with their service. But this time I gotta side with the mayor. There is no evidence that LES is doing what's needed in their own house first. "

 Hmmm... wrote on July 10, 2008 4:08 pm:
" Please fulfull my list of demands and more...just don't make me pay for it. "

 How much wrote on July 10, 2008 4:08 pm:
" would be saved every year if LES quit printing my bill and the inserts in color? I know it would be small but it still chaps my hide. Also, why do my rates pay for ads at the movies when I have no other choice for power? Who is LES competing with that they have to advertise? Lastly, How much does LES really pay in overtime a year, year after year, that they could hire another shift instead. "

 srv wrote on July 10, 2008 4:10 pm:
" Utility worker
Isn't LES selling excess capacity from the joint venture in the Council Bluffs coal facility? Need Natural gas (What?) Maybe they should spend less on their info-mercials and concentrate more on reducing costs... "

 cared wrote on July 10, 2008 4:11 pm:
" So the mayor had no idea that energy prices are rising, huh? That's an interesting claim. He really should take a quick search through old newspapers, because I think he may have missed one or two stories about energy costs. Of course, he may honestly believe that electricity rates in Lincoln are somewhat insulated from higher fuel costs...that is, if LES has hydroelectric dams on Salt Creek or maybe a nuclear reactor in Pioneer Park. Otherwise, electricity in Lincoln is going to come from burning fossil fuels, which are more expensive now than they were a year ago.

I can understand the mayor doesn't want to make adjustments because of an unanticipated LES rate increase, but I don't understand why he would publicly lash out at anyone, including LES administrators, primarily because they were the bearers of bad news. Especially when it's news that could reasonably have been anticipated by the mayor and his staff. Also, if electricity rates are so important to his budget, why couldn't Mayor Beutler have picked up the phone early in the budget process to ask LES if their rates were going to be affected by rising fuel costs? "

 SomeGuy wrote on July 10, 2008 4:14 pm:
" Too bad that the City wasn't responsible for the last 10 years folks. Grow Up! Do you think public utilities don't have to pay for gas, oil, coal? What about transportation of those products? Sure we have solar and wind - but do the math - it will take millions to go down that road - and you're whining about a hundred bucks. How about dropping your cable, daily latte, or whatever and suck it up! "

 Ditto to SomeGuy... wrote on July 10, 2008 4:30 pm:
" ...and to those who wuold leave Nebraska for greener pastures, good luck. I just returned from a visit to relatives in Ohio. How about $1.06 for a can of green beans and $4.25 for a bag of cypress mulch (compared to the going rates in the Lincoln area of about 70 cents and $3.25, respectively). And that doesn't even begin to address the poor quality public schools and other public services offered there. Again, yuo want government service of any kind, you have to pay for it. And you get what you pay for. "

 Tom wrote on July 10, 2008 4:40 pm:
" Much of our current economic woes were brought on by poor decissions from the federal level. The current federal investment policies regarding oil have created outragous gas prices; the former lending guidelines for housing has driven many to foreclosure. Look at the bigger picture, someone voted Bush and the Oil Industry into office. Was it you? I have no clue what to do with all the colateral damage either. Thank God beer prices are holding steady. Now if I could get my wife to be a little more reasonable with the thermostat I could easily offset any rate hike. Here's a thought, only pay for what you use. "

 Kman wrote on July 10, 2008 4:42 pm:
" Only 12%? When was your last rate increase? We get at least 10% increase every year on our electric. You are still paying less than half of what we do here in southwest Colorado. "

 Leaving wrote on July 10, 2008 4:50 pm:
" I'm so glad I'm building a home outside of Lancaster county. I finally had enough of this city and it's taxes. LES isn't getting another dime from me! The rest of you should join me! "

 Bill wrote on July 10, 2008 5:06 pm:
" I really wondered as I drove in a new part of town Wednesday that I have not been in since 1981...south edge of Southpoint. All these threats of people leaving Lincoln because of high cost of living seem quite meaningless in the light of all the building taking place.
What is this have to do with the rate hike of LES...just another contribution to the higher cost of living. "

 Amelia wrote on July 10, 2008 5:09 pm:
" Of course the Mayor is outraged more by the proposed LES hike than a slight property rate hike. While property taxes do indirectly effect everyone - an LES rate hike would effect EVERYONE in the city DIRECTLY - the old, the poor and the hungry. I can stomach my property taxes going up, I'm not required to live in a house that is worth more than $150,000 - no one is....Electricity is something that you can't live without, you don't have a choice. "

 Mark wrote on July 10, 2008 5:11 pm:
" I understand everything is going up but what is LES trying to do, force a large portion of the city population into the streets???!!!! Why can't YOU do with a little les like the rest of us?! I bet that fat cat LES CEO and other share holders have a nice fat paycheck while the rest of us can't even make ends meet. SHAME ON ALL YOU GREEDY CEO's in the utility businesses. You are a terrible, greedy, heartless man!!!! "

 JoBeth wrote on July 10, 2008 5:13 pm:
" Keep the one cent tax increase, and cut LES to 4% and do an audit of LPS. Everything is going up, and we can't bury our heads in the sand. We have to manage better. "

 Good grief... wrote on July 10, 2008 5:30 pm:
" Wow...some people really have no clue.
1. LES is PUBLICLY owned. For those of you who don't understand what that means, it means that there are NO shareholders. It's a public entity just like the city is.
2. The CEO doesn't make millions, like you would like to believe. He makes a wage that is commensurate with someone else in his position that heads a company of its size. I'm sure that the CEO of Lincoln Industries makes quite a bit more for a similar amount of work, but for some reason you expect LES's to take a vow of poverty just so he can work for you and get all of your praise and positive feedback (like now).
3. This is all due to increased energy costs, as we all are having to pay. Unfortunately, LES, or the city, or LPS, or whoever is not immune to having to buy $4.00 gas to fuel their vehicles. On top of that, coal costs are going up, raw materials are going up, and yet you expect prices to stay the same forever. Unfortunately, due to the problems our congress and president have gotten us into, we've got massive inflation and not much increase in wages. Now we have to decide if we're going to deal with them the right way, or just whine and stomp our feet. "

 Mark wrote on July 10, 2008 5:47 pm:
" What needs to happen is taxing enteties on all levels, from LPS raising their budget, the city and county raising their budgets, tax increases right and left!
The ditch through the center of town isn't done or paid for yet. Whats that project cost up to now? 300 million? Were looking at a sizeable property tax increse with the new jail 65 million dollar jail,(one estimate is up to over 90 million again) of which we all will be paying for over the next 20 years.
Lets not forget all the bond debt payments being made currently on past bond issues were paying for.
Then last but not least, for now, the coming vote on the proposed 150 million dollar arena and covention center. Just think what that will cost you.
Nobody gets pay raises per year to offset all these taxes, and increases we endure here. It's time all levels of government and LPS step up and make do with less, just like everyone else. "

 Be careful wrote on July 10, 2008 6:21 pm:
" Those of you asking for a audit of LES through the mayor are working right into his plan, when he was in the legislature he did the same type of deals. He's using the LES rate hike as a way to get out of asking for the property tax increases the city council wouldn't approve anyway and trying to draw attention away from himself for trying to pull the exact same thing. I don't approve of the LES rate hike either I just don't want people to have the wool pulled over there eyes by the Mayor's little politcal spin move away from himself. "

 OK wrote on July 10, 2008 6:36 pm:
" I know rate hikes aren't popular, but gas costs for the trucks and equipment have gone up just like ours have. In fact, one electric company in rural Nebraska has had their gas costs triple in the last few years. Since LES does a good job, and you can actually see where a lot of the money is going (your comfort), who would you rather pay, the city who wants to spend your money on arena's or your own electricity. "

 love lincoln wrote on July 10, 2008 7:08 pm:
" How can so many people make rude comments without knowing the facts of the matter? The rate increast is strictly because of the rising fuel costs, pure & simple. Too bad the mayor, who was informed early, rather than late, as he claims, has chosen to make this his personal political football. "

 whatever wrote on July 10, 2008 7:40 pm:
" Right or wrong this increase is pretty much in line with what is happening throughout the country. We haven't had many new power plants come on line the past 10 years. Many that have are fired by diesel, oil or natural gas and we all know where those prices are at. Unless things change in this country dramatically it will get MUCH worse. Read up folks these price increases and shortages have been projected for quite some time. In less than five years if no new significant increases in capacity come about in conjunction with conservation you will find most utilities in this country will be able to provide on demand 24/7 power service. We all have the power to DO SOMETHING, but as long as we continue to elect idiots for leaders and expect something TO HAPPEN without making any effort on our own part to DO SOMETHING it won't get any better. We don't live in a country that has benevolent political and business leaders in any quantity to look after "the masses". For my part I have been using Compact Flourescent light bulbs for at laeat 12 years and am systematically "upgrading" every electrical appliance I have. In addition I rarely run the A/C at all. Fundamental changes will be and must be made in all American's lifestyles. If we won't do it voluntarily it will be "thrust" upon in the manner of higher prices. If that doesn't do it then the matter will be dealt with by limiting supply. This is what's going on folks. No complaining now, just go turn something off. "

 Dayton wrote on July 10, 2008 8:22 pm:
" Beutler should be commended on his position that LES needs to show it can be a more efficient and productive organization. However, the proposed increase is probably in line with acceleration of inflation in the energy sector. Beutler should be calling for LPS to engage in cost cutting initiatives and staff reductions as the costs of energy will be greatly affecting their budget and the recently approved wage increases place an excessive burden on Lincoln’s citizens. LES should be charging more so she can invest in wind generators. It would alwo be prudent for LES to begin implementing a surcharge when high consumption customers exceed an average for homes or industry use. This is a time for conservation and four day workweeks so the behavior of the community embraces the energy challenges our world faces.. "

 Its Hysterical wrote on July 10, 2008 9:13 pm:
" that the blogs here talk about the city should have been more understanding because energy costs have risen, that LES has to pay more because their costs of gone up. So have the city's....and we blast
them for daring to ask for a ONE PENNY increase? Let's give the city
the same consideration and understand that they use energy, they use gas, they have capital costs and equipment costs too. It's not just LES folks
that need our help and our dollars...our city does too. "

 UpInSmoke wrote on July 10, 2008 9:28 pm:
" A fiscal performance audidt should be required each & every time LES ask's for a rate hike. Since LES is publicly owned, there shouldnt be any "luxuries" I see LES vehicles everyday that are either brand new or no more than a year or 2 old, Why cant the meter reader's & the LES employees tasked with turning on & off service drive vehicles that are a few years older? I know for a fact that there is a lot of excess fat that could be easily trimmed from the LES budget! It's time Mr. Bundy & the rest of LES be held accountable & show it's customer's where every penny collected by LES goes! "

 timmy wrote on July 10, 2008 9:29 pm:
" Electric rates are, for reasons already mentioned in many of these posts, skyrocketing all over the country. LES will, as usual, disclose their costs and reasons for the rate hikes if Beutler can stop grandstanding long enough for them to do so. For the mayor to suggest that the reason for rate hikes is due to inefficiencies within LES is an undeserved insult to the company's workers. Nobody wants rate hikes, but the realities of increased fuel costs to generate electricity aren't in LES's control. Lincoln has some of the cheapest electric rates in the country. To see that Lincoln's not alone, see this recent USA Today piece: http://www.usatoday.com/money/industries/energy/2008-06-15-power-prices-rising_N.htm "

 Harry the Antenna Guy wrote on July 10, 2008 9:54 pm:
" Sorry mayor, I can't stomach your proposed cuts and tax hikes. Where did you squander our tax dollars at? LES has been doing a good job at keeping rates down. If they work hard, they can do even better but I can't believe the gall of this mayor. Want to build an arena shed, a big ditch road, and continue to expand government. Maybe you, Mr. Mayor, should look at cutting your fat and not useful public services. "

 Funny wrote on July 10, 2008 10:00 pm:
" thing, last month my LES bill jumped $25.00 and I hadn't and still haven't
even turned on the air conditioner. In fact I barely turn on any lights,
and last month I lived the same as the month before except with the longer
daylight hours didn't turn on any light until later. Figure that one out??? This is what Beutler gets when he turned his budget job over to
the public groups, to figure out what to do instead of doing the job he
was elected to do. Ya just never know when ya live in a city where you
can't trust ANYBODY!! Just think of all the retireds on fixed incomes
with maybe a little C.D. getting 1% interest and the retireds on fixed incomes in retirement homes where rates are increased to who tied 'em.
Homes are way over assessed, several have had to lower their asking price way below the assessed value and some I know trying to sell for the
assessed value won't sell. Can't wait for those that want the higher
taxes and rates until they retire and they'll be singing a different tune. And you'll probably even be lucky to get any social security!!
I'm sure LES wanted to get the jump on higher rates before the new gas
utility comes to town with higher rates!!!!! "

 LES does not need to advertise wrote on July 10, 2008 10:21 pm:
" I wish LES would end the pointless color fliers touting how to save electricity by shutting off lights. Print these messages on the bill - there is more than enough room. The extra paper, ink, and design costs add up. "

 Jump ship wrote on July 10, 2008 10:36 pm:
" Its time to leave this town. Unreal, tax the poor! Its lincolns only solution. This town will become a ghost town. "

 Alice in Wonderland wrote on July 10, 2008 10:59 pm:
" We have fallen into the looking glass. . . . . .it is only a matter of time until the revolution starts.. . . our "leaders" have LOST all perspective and society is crumbling. . .its only a matter of time.... . "

 Interesting wrote on July 11, 2008 5:58 am:
" Hey Mayor. How does it feel to have information dumped in your lap at the 11th hour? Don't like it? It is the same thing you have been doing to the City Council lately. I agree, there are many places ALL agencies and departments can cut costs. All of you jumping up and down here, where were you when Lincoln Public Schools wanted more? "

 READ MY LIPS wrote on July 11, 2008 6:16 am:
" I don't have any more money due to gas etc. "

 Really getting annoyed wrote on July 11, 2008 7:47 am:
" Time for a NEW mayor. "

 Arnie wrote on July 11, 2008 8:13 am:
" Time to privatize this bloated bureaucracy. And, NPPD and OPPD too. These quasi-government agencies have no accountability and waste, waste, waste. "

 I understand wrote on July 11, 2008 8:40 am:
" Business is hurting also with the economy BUT we the people can support your short fall. We are short ourselves and if you haven't noticed, it has affect us in many ways. People say a penny here, $10 there etc, add then up and the total of all of it on my calculator is equalivant to over $125/mo (groceries/gas included) extra. Now my pay went up $18/month, where am I going to get the difference??? I live meager now, guess as a treat I won't get cheese hot dogs, will get the turkey franks! Wonder if government could do the same??? "

 omg wrote on July 11, 2008 8:49 am:
" stuff costs more than it used to! oh my gosh, this is breaking news!

get over it, whiners. "

 Craig wrote on July 11, 2008 9:09 am:
" Good for you Mayor Beutler! How about we let the competitive market set our energy prices. I say Senators run Legislation in 2009 to privatize Public Power. If not, maybe I can take my frustrations out like the state fair folks and start a petition drive to abolish Public Power. "

 windpower wrote on July 11, 2008 9:23 am:
" I believe no one debating the increased costs issue for electrical power but LES is still refusing to look at the option of diversification of energy sources. Research shows that the plains are the best source of Wind Power. In fact Nebraska is in the top 5 in the nation. While no one is suggesting this would supply all of our power even 20% would be a huge benefit. From news I've seen in the past, both OPPD and NPPD are investing in wind farms but LES only has the 2 towers. At some point this needs to be a priority. I have yet to hear anyone say that energy costs will go down in the future. "

 Oh Grundle wrote on July 11, 2008 10:00 am:
" Step into reality, who do you think is going to pay for 2015. If you think Chris has been a good Mayor and cares for the well being of this city you may need your head examined. LES is the cheapest electric company in the region and hasn't hiked prices for a very long time comparitive. Call me crazy but I would rather have my bill hiked up then pay more on taxes that do absolutely NOTHING for me. "

 Really Lincoln wrote on July 11, 2008 10:17 am:
" I think I have heard enough. All of you saying, we should leave town, the revolution isn't far away, we can't take any more taxes etc.. Have you looked around lately, we live in a small 'city'. Therefor there are fewer taxes coming in, but yet we don't pay a very high tax rate. Stop slamming the city you live and blaming the mayor etc. for your problems. Do you all really have it that bad? The ship isn't sinking folks and if yours is, it isn't the citys job to help you keep it afloat. Take the increases with a grain of salt and move forward, just think what you will have if the increases don't happen, most likely things will get worse without the increases. Stop whining already and grow up, nobody wants to hear your sob stories about switching hot dogs just to afford power. We all have to make changes (rich and poor) of which I am in the middle of, so don't think I am one of your so called 'rich southies' which by the way I am happy to have b/c without them and their large houses and their huge tax payments we wouldn't have half of what we have in this town now. "

 SE Lincoln wrote on July 11, 2008 10:41 am:
" Privatize?! So then a private corp. will work to keep our rates low? Gee, would it be as great a deal for us as Cablevision has been? Come on people-in the present environment I am amazed LES doesn't need a lot more than a 12% increase. Wages not keeping pace with inflation? Well, certainly your private employers are looking out for you-you know, sharing their profits with you, cutting the CEO's salary so you can have more. Open your eyes! Private corporations created this economic quagmire we are in. "

 Opportunity wrote on July 11, 2008 10:42 am:
" We as taxpayers and ratepayers have an opportunity to petition our city council to an "honest" audit of both LES and the city to find out where the money goes.By "honest" why I mean is not a bogus commitee made of political volunteer cronies but a professional team that will report facts.Then at that point we can decide what to cut and increase.
I could fully support both a tax increase and a rate increase but will not because this cities mayor,LES board (pick-one of several),bureaucrats and city council lack any credibility.One of many examples was the "ice-tax" of 5.00 per bill for over a year on the LES bills due to an ice storm miles from Lincoln and for which FEMA paid for however LES levied this "ice-tax" and promised it would be removed for our bills.Concurrant to that the city was 9 million in the "red" buit it strangly disappeared after the "ice-tax" was collected.
As far as the city goes the list of waistful spending is endless..such as paying cops to watch strippers not once,twice but over 20 visits,non-necessary police substations,motorocycle divisions.The fire department waist is legendary.So before I pay more money to "enable" these types of waist I want someone to take responsability and access blame.
In short these is no accountibility in this city for the failuers that have been foristed upon us by unaccountable mayors that demand more money to continue more of the same. "

 Big Wonder wrote on July 11, 2008 11:15 am:
" I can't imagine that anyone is surprised that with oil and natural gas prices skyrocketing that electrical generation costs are going up too. Just because the city owns LES doesn't mean they can magically produce electricity at the same rates despite big cost increases.

By the way, for all the posts I read of folks who have already left Lincoln and are happy about it, and all the folks who are planning to leave as soon as they can, it's amazing the city population just keeps going up and up. Maybe those folks who have left or are going to leave should just keep the news to themselves. That way the rest of us poor shlubs who are going to stay and work to resolve the problems don't feel so bad about their absence. "

 Worse yet wrote on July 11, 2008 11:24 am:
" How about we let the competitive market set our energy prices? Companies like ExxonMobil have done a great job holding our gas prices down, at the expense of their record breaking profits...not! "

 Josh wrote on July 11, 2008 11:46 am:
" LOL - just another nail in the already WELL nailed shut coffin for my future in Lincoln. Two more semesters and I'll take my degree and hit the road, just like 90% of the UNL Class of 2009 (the other 10% are staying for grad, they'll leave after that).

I'm not even interested in picking apart the why's anymore - every time I read something like this (and it's frequent), I just thank God I'll have the resources to leave soon. "

 Mrs. Johnson wrote on July 11, 2008 12:07 pm:
" At some point we'll need to get in on the wind power thing. Why wait until the price of coal and gas go so high and then try to catch up. It's time to join the parade before we miss it. Wind won't jump in price ever time some world leader does something crazy (ie GW!). It will just keep on blowing. "

 Larry wrote on July 11, 2008 12:10 pm:
" I'm packing my bags and heading down the dusty road with the rest of you! There's got to be a place somewhere?!? A place where solar and wind fill all our needs. Let's go boys and girls! "

 WOW wrote on July 11, 2008 1:10 pm:
" Okay, here goes, I work for LES. I know there are some areas where budget costs could be cut. LES has done this for the last several years in fact trying to offset raising the rates. No, I do not know about the advertising dollars spent, but sure, some of them could be done away with. As to putting advertisements on the bills, those are not printed here in house so that can not happen. What most people do not realize is that being a publicly owned utility LES DOES NOT make a profit. As for the vehicles, I can't say about that either other than to point out that the meter readers don't have company vehicles, they are required to provide their own. I also can not believe that the mayor had NO idea that LES would need a rate increase. As to stopping overtime and hiring an additional shift. Come on, overtime is an occasional thing and an additional shift would be full-time. Pay someone overtime once ever 2 months or someone a 40hr week every week. Does that sound cost effective? The only way to get away from a rate increase would be to start doing brownouts and not providing you the electricity that you demand. Also, where are we supposed to get the funding from our budget to invest in any new wind turbines? We are cutting our budget, we have no money to put toward new technology. Get real people. Don't complain unless you know what you are talking about. This is a $9.00 a month increase at 12%, I know it is difficult to find money where there is none, but think about that from LES's point also. I can't afford anything extra either, but am going to be turning my AC (yes I use it 2-3 months a year) up to 80 as it is set at the recommended 78 now. That will offset some of the increase.

Thank you to everyone who had an understanding of the way this works and LES. I don't belive that asking for 12% is a bait and switch tactic, but a beging point in negotiaions. I'm not sure where it will end up. Hopefully I still have a job left at the end. I think the mayor just wanted to have something to take the heat off of him and chose LES. This is not set, it hasn't even gone to the board yet.

By the way, everyone one gets the chance to personally question and speak in the public hearing that will be held (as they always are for a rate increase) after the board decides what to propose. "

 lolly wrote on July 11, 2008 1:26 pm:
" The turd in the punch bowl folks is LPS. If they were made to account for all the money they spend, we could get a break and afford the city increase and the LES increase. I'm sorry but for what we spend on education in this town we aren't getting our money's worth. LPS has an open checkbook while everyone else scrimps. Audit LPS and see what kind of money we have! "

 I wrote on July 11, 2008 1:32 pm:
" Headline J&S Saturday, Jan 19, 2008 - 12:33:09 am CST "LES board approves 5.5% rate hike"
Headline J&S Friday, Dec 28, 2007 - 12:24:48 am CST, "LES administrator gets 4.5 percent salary boost"
Wow, LES, Can you just hold off a year at least? It hasn't been long enough for us to forget yet. "

 HuskerDemon wrote on July 11, 2008 2:04 pm:
" People should get the facts before making a snap decision....

FACT: Summer wholesale power prices (power that LES buys
from other utilities to keep YOUR lights, air conditioners,
and plasma TV's running) are closely tied to natural gas
prices (see
http://www.ferc.gov/legal/staff-reports/06-19-08-cost-electr
ic.pdf for proof from the Federal Govt).

In the past 7 months, natural gas prices have risen over
100%. LES is only asking for 12%......do the math, and then
you should feel pretty lucky that you all live in a
City/State that has not deregulated (privatized as some poor deluded soul called it earlier)...some of the areas that have
deregulated on the East Coast have seen rate increases of
over 100% in the past few years.

LES electric rates have consistently been in the lowest 10%
in the nation ((see http://www.eia.doe.gov/cneaf/electricity/epa/fig7p4.html for proof....LES rates are 5.65 cents/kwH.....lower than the NE state average!!!).), and will continue to be for years to come.
The reality is that everywhere around the world, energy prices of all kinds are going up, and Lincoln can't bury its head in the sand and
pretend that we're any different. "

 Hold the Phone wrote on July 11, 2008 3:20 pm:
" So LES says that natural gas is the culprit. A little research, and to no surprise they are correct. The price of natural for my home in Lincoln last July of 2007 = $0.89272 per therm, today in 2008 = $1.51174/therm. That is a 69% increase or at my house where we use 1,500 therms per year is an increase of $929. Where is the Mayor? Blindsided? LES's $100 a year to keep the lights, not such a bad deal after all. I am stunned that with all of the watchdogs in Lincoln, that no one has said a peep. Thanks Aaquila. Maybe that rebate check is just in time to keep my natural gas increase to only $899. Wow Wow Wow! "

 ex-Husker wrote on July 11, 2008 5:00 pm:
" I am a CEO of a nonprofit electric company in a neighboring state. I have worked in energy in four states including Lincoln. The rates at my electric company are 250% higher than Lincoln's. Lincoln has the lowest electric rates for a metro utility in the nation. You folks don't have a clue. LES's retail rates are lower than my wholesale rates. Man I hate it when you guys overreact every time this happens. You are the luckiest electric customers on earth! Go to any municipal or co-op website and check out their rates. You will be embarrassed by your reaction! Bloated? No voice? Neither is true. "

 When does it end wrote on July 11, 2008 5:55 pm:
" Mr Canney built LES reputation for cheap power for us and this Bundy guy has destroyed it with twice yearly rate increases and the sheep that are supposed to pass as Lincolnites just bend over and take it.

Somewhere there is a place where the people have some guts to stand up and say........."ENOUGH! NO MORE!"

Thats where I'm going after (IF) my house sells. "

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