Why do you need to raise rates?

    As we see the average price to serve our customer load increase we need to cover these costs with additional revenue. OPPD is a not-for-profit utility and does not generate a “profit” from our operations. All revenue is invested back into the system. 

    The rising costs of net power to serve our load, both existing and new growth, is contributing to the proposed rate action. In addition, OPPD continues to invest in work that supports the reliability, resiliency, and overall health of our system during a transformational period for OPPD and the industry as a whole.

    How will this impact my bill?

    The monthly impact of the rate change on an average residential customer bill of $111 will be $0.44. Over the course of the year this would equate to an annual impact of $5.28 for the average residential customer.

    How can I lessen the impact of this increase on my bill?

    Because it is based on energy usage, the less energy you use, the less of an impact the general rate increase will have on your bill. Following conservation measures and improving your home’s energy efficiency can also help you lessen the impact.

    Does employee and executive pay and compensation factor into this proposal?

    No. The proposed increase in 2024 is in response to increasing net power costs, which increased 19% in 2023. OPPD is also experiencing growth in capital investment needs in order to serve a growing population as well as maintain a reliable and resilient system for our customers. 

    I’ve done everything in my home to reduce my energy usage. The cost of everything is going up and I can’t afford this increase. Can I get help with my bill?

    OPPD understands the challenges some customers may face and has a range of programs to help those struggling to pay their utility bill. Some of these programs involve collaboration with other organizations. More information is available on OPPD’s website. Customers may also contact a customer care representative by emailing customerservice@oppd.com or calling 402-536-4131 in the Omaha metro area, or toll-free outside the metro at 1-877-536-4131. OPPD urges customers to call before they fall behind on their bills so that OPPD can work with them.

    Why does the rate increase vary between types of customers?

    OPPD’s rates are established based on an industry-standard cost-of-service study. Costs are allocated to customer classes based on how much they contribute to the utility’s costs. The degree of impact of the rate adjustment will vary due to customers’ energy usage. Those customers with the highest usage will see the largest increases. For more information on how rates are established, please visit our Rate Fundamental Report online.

    Will we see the increase year-round or only during certain months?

    Because the general rate is based on your energy usage, during the months when you use more energy your bill may be higher than in months when you use less.

    How do your rates compare to other utilities in our region?

    In analysis of 11 utilities in the Midwest and elsewhere in the country, the 2.5% proposed rate increase is lower than the average of the other utilities’ rate increases, of which the average increase is 4.8% and the highest increase is 8.4%. OPPD has been gaining a competitive edge against the national average over the past five years. As of 2022, OPPD’s average retail rate was 26.5% below the national average. The modest rate increase proposal will ensure that OPPD maintains competitive rates while supporting the overall health of our operations.

    How is the rate impact for residential customers 1.6% when the mean customer only experiences a 44 cent increase?

    While the total residential class impact is 1.6%, the impact will vary based on usage with higher usage customers experiencing more than 1.6% and the mean customer experiencing less than the 1.6%. The higher usage tier rates were raised in our residential offerings. Thus, the majority of the impact is seen in customers whose usage is over 1,000 kWh a month. If customers conserve energy, the impact will be less. OPPD has strategies and tools to help with energy efficiency, including how-to videos, at oppd.com/ee.