With a lower incentive rate and a couple of new special rate products, Nebraska Public Power District’s toolbox to help businesses with their energy needs got a little bigger. Earlier this year, the Economic Development Rate that is available to wholesale customers and their end users that meet certain criteria, saw a production energy rate decrease from 2.7 cents per kilowatt hour (kWh) to 2.5 cents per kWh. This rate provides eligible customers a reduced energy rate for up to five years. Projects must have a minimum size of one megawatt (MW) and have a monthly load factor of 60 percent or greater. The project must also qualify as an economic development project under state or local law. Transmission, subtransmission and distribution costs may also be applicable depending on where the qualifying customer takes delivery of service.
In the spring of 2018, the NPPD Board of Directors approved a new Interruptible Service product that is intended for that large energy user that operates seven days a week, 24 hours a day and is able and willing to curtail their demand for electricity in certain instances to get a reduced rate. It does require a non-firm contract demand of 10 MW or more and a firm contract demand equal to at least 25 percent of non-firm contract demand for a minimum monthly demand of 12.5 MW.
As more businesses set renewable goals for their energy consumption and become more sophisticated with their renewable energy needs, the NPPD Board of Directors felt it was important to offer a rate that would help a large customer meet their renewable energy goals while at the same time provide a price hedge for their renewable energy purchases. As a result, in the fall of 2018 the NPPD Board of Directors approved a new Market-Based Rate product. End-use customer with a monthly demand of at least 20 MW eligible for this special power product.
Nebraska Public Power District has worked hard to not only keep rates stable and affordable but by offering new rate products to assist expanding and new industries in Nebraska is another way public power is working help grow the state’s economy.