FAQs
- An additional $11.7 million in the budget toward tree-trimming, for a total of $29 million
- $6.5 million in system-hardening measures
- Investing in the stability of power distribution system through new meters and the new technology to support and power them
- A new online customer platform to improve how customers do business with OPPD
- A new outage map and operating systems to help communicate restoration times during outages, such as during storms.
- Investing $595 million in projects that grow our assets and modernize the electrical grid
- Investing $193 million in existing assets to ensure reliable performance
Why do you need to raise rates?
The average price to serve our increasing customer load is rising, and we need to cover these costs with additional revenue. As a public power utility, OPPD is not-for-profit, and does not generate a “profit” from our operations. All revenue is invested back into the system. The costs associated with serving both existing and growing load have increased. The price to serve load is being driven by current needs and new growth throughout our service territory. To fund this additional generation, we are making capital investments that will serve this increasing load, transform the utility and support the overall health of our electric system.
In addition, the Southwest Power Pool (SPP) is increasing its Planning Reserve Margin (PRM) – the amount of power that utilities must have available beyond peak projected demand to guard against unplanned situations – from 15% to 36%, starting in December 2026.
How will this impact my bill?
The monthly impact of the rate change on an average residential customer bill of $113 will be $9.44. Over the course of the year this would equate to an annual impact of $113.32 for the average residential customer.
How will this rate change impact my level payment plan?
OPPD projects your monthly usage based on the last 12 months of usage at the service location you occupy. Generally, your monthly level payment will be set for 120 days, based on the month you enrolled in the Level Payment Plan Program. After 120 days, your monthly level payment amount will be re-evaluated and adjusted accordingly. With the rate change going into effect on Jan. 1, 2025, it could be up to 120 days that an adjustment takes place if needed. Please contact OPPD Customer Service with any questions at 402-536-4131 within the Omaha metro area or 1-877-536-4131, outside Omaha.
Will all residential customers see an 8.4% increase?
While the total residential class impact is 8.4%, the impact will vary based on usage with higher usage customers experiencing more than 8.4% and low usage customers seeing less of an impact.
How can I lessen the impact of this increase on my bill? What tools and programs does OPPD offer to help me?
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. OPPD understands the challenges some customers may face. The utility has a range of assistance programs, available at OPPD.com, to help those struggling to pay their utility bill. Some of these programs involve collaboration with other organizations. More information is available at oppd.com/EAP.
Do employee/executive pay and compensation factor into this proposal?
All costs that OPPD incurs are part of the rate-increase analysis, including salaries and wages for all employees, but are not a primary driver of the rate increase.
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 categories 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. If your energy usage is the exact as it was in 2024 you will see a higher bill every month. Your actual usage will likely be different in 2025 due to factors such as the weather and energy efficiency improvements you may make in your home.
How do your rates compare to other utilities in our region?
In an analysis of 11 utilities in the Midwest and elsewhere in the country, the OPPD proposed rate increase is the same as the average of the other utilities’ rate increases, of which the average increase is 6.3% and the highest increase is 15.5%. OPPD has been gaining a competitive edge against the national average over the past five years. As of 2023, OPPD’s average retail rate was 32.5% below the national average. The modest rate increase proposal will ensure that OPPD maintains competitive rates while supporting the overall health of our operations.
Are data centers contributing to the increases?
OPPD is seeing growth across all customer categories. If anything, data centers’ energy usage and the retail sales revenue they generate help OPPD to lessen the need for higher rate increases.
Are renewables contributing to the rate increase?
Renewables are a long-term, low-cost generation resource for our customers. Having renewable generation sources, like solar and wind, mixed into our system help with reliability and ensure that we have several sources of power to draw from.
Are higher executive salaries contributing to the higher rates?
Energy prices in the market are largely driven by factors like fuel costs, supply and demand, infrastructure needs, and overall market conditions, not by executive compensation. OPPD’s board of directors review and mitigate the risk for executive compensation to prioritize personal gain over the company's long-term health and customer satisfaction.
If you hadn’t shut down Ft. Calhoun Station, would we have been able to avoid this rate increase?
The decision to cease operations at Fort Calhoun Station (FCS) was based on a feasibility study that determined FCS to no longer be economically viable for both the utility and our customers. Assets that replaced FCS are modern, have different operating capabilities and cost less to operate for our customer-owners.
Is this related to the slow transition to time-of-use rates (AMI)?
No. The rate increase is based on the projected cost of serving customers in 2025. Time-of-use rates, if implemented in the future, will impact the way we charge for our service but will not impact the total amount of revenue collected from customers.
What am I getting out of these rate increases?
There are several near- and long-term benefits that our residential customers will get from this rate change, to include:
Does this mean you’ll be burying my powerlines?
Burying power lines can be a complex process with a lot of costs and considerations. OPPD looks at all the issues and angles when making these types of decisions from maintenance to restoration efforts. For example, maintenance of underground lines is more complicated, and when an outage happens with underground lines, the repair process takes longer and is more involved. New development typically includes installing underground lines in areas without many trees. In those areas, developers plan for, and generally pay an additional fee to have facilities installed underground. Underground construction continues to be more prevalent in both rural and metro areas. In rural areas, conversions from overhead to underground are often more feasible because there are generally fewer obstructions with which to contend.
Does the weather have anything to do with this rate change?
It’s important to note that the types of weather we experience can have an impact on energy usage and therefore energy bills. 2024 had both a mild winter and summer, so even if a residence uses relatively the same amount of power in 2025 but the winter is colder or the summer is hotter, this will impact your bill.
What's the difference between a watt and a kilowatt-hour?
A watt is a unit of power whereas a kilowatt-hour is a unit of energy.
One kilowatt [kW] equals 1,000 watts [w].
Kilowatt-hours represent the amount of electric usage over a one-hour period.
Example: 1,000w over a 1 hour period = 1kWh [kilowatt-hour].