The Loup Power District Board of Directors approved a 7.28% retail rate increase at its December meeting. The increase comes amid increasing wholesale power costs, material price increases, and supply chain issues.
“Even with the retail rate increase, Loup’s retail rates remain among the lowest in Nebraska and the nation,” said Board Chairman Jim Donoghue.
Loup’s overall rates are 34.7% below the national average and 11.0% below the Nebraska average based on data from a 2023 American Public Power Association survey. This places Loup in the lowest tenth percentile both statewide and nationally.
Loup’s average residential customer will see an annual increase of about $125 for electricity costs, although the exact amount depends upon seasonal rates and usage.
Before voting to increase retail rates, Board members reviewed current rate levels for all classes of customers as well as budgeted revenue and expenses. In addition, management performed a retail cost-of-service study.
As part of this review, the Board analyzed purchased power costs from Nebraska Public Power District (NPPD), Loup’s wholesale power supplier, and anticipated future costs in all areas of the District.
Loup has seen an increase in material costs in recent years coinciding with nationwide supply chain issues and inflation pressure. In addition, Loup is projecting a large increase in construction projects in the next six years due to anticipated load growth. Loup will see an increase in wholesale power costs from NPPD in 2026, and potentially beyond the 2026 time period.
Rate Committee Chairman Steve Heesacker said the Board worked with management to successfully keep rates steady between 2018 and 2022. Loup was able to do that despite the 2019 storm that damaged District’s hydroelectric system and the impact of the COVID-19 pandemic in 2020 and 2021. Loup is still working to recover approximately $4 million in construction costs from the federal government for repairs made to the hydroelectric system from the 2019 storm. This has affected the District’s cash position, even with the bonds the District issued in 2025 that will help meet projected construction cost needs in 2026 and beyond.
“With the increases in purchased power costs and construction and material costs, including the debt costs associated with the 2025 bond issue, the Board felt it was prudent to implement this increase in retail rates to maintain Loup’s financial health,” Heesacker added.
Energy or kilowatt-hour (kWh) usage and seasonal usage patterns are always the determining factor in a customer’s bill. Customers in all rate classifications have opportunities to reduce their costs by taking advantage of numerous programs offered by Loup.
These programs include energy incentives and home energy audits. For more information on Loup’s retail rates and energy-saving programs, visit the Loup’s website at www.loup.com.