By Bruce Vitosh, Norris PPD general manager

    Electricity in Nebraska stands out as an exceptional value, with Nebraska rural public power districts and electric cooperatives (Nebraska rural systems) consistently delivering reliable, cost-effective power to the communities they serve. While reviewing a sampling of mission statements from Nebraska rural systems, each included a reference to low-cost, competitive prices, cost-effective, affordable, economical, or cost-based electricity. Are Nebraska rural systems fulfilling their commitment to provide low-cost electricity to their customers? Absolutely.
    According to the National Rural Utilities Cooperative Finance Corporation, the median residential electricity cost per kilowatt-hour for Nebraska rural systems is 11.0 cents, or more than 20% better than the nationwide median of 14.1 cents. 
    Electricity continues to be an extremely great value for Nebraska and rural systems nationwide. Since 2010, average monthly residential electric bills have only increased $16, and when inflation is considered, the average monthly bill has actually decreased $26. This data demonstrates that overall inflation has outpaced the increase in electricity costs for households.
    The single largest expense for rural systems is power costs, which they have little control over, as they contractually depend on generation and transmission organizations to provide reliable and low-cost power. Revenues collected from customers recover both power and other controllable costs. These costs are allocated to customer classes based on the cost of service and are collected through customer, demand, and energy charges. Rates for these charges are determined on how customers impact the costs incurred on their behalf.
    Other applicable charges collected through electric bills are determined by the Nebraska state legislature or local communities and are not the responsibility of individual power systems. Unless a customer qualifies for a sales tax exemption, Nebraska rural systems are required to collect a state sales tax of 5.5% and a community sales tax, as determined by the local community, which typically ranges from 0.5% to 2.0% on gross revenues. 
    State statutes require that Nebraska rural systems collect a gross revenue tax of 5.0% on revenues received from customers located within the corporate limits of incorporated communities. The gross revenue tax collected is paid to the county treasurer, who distributes the funds proportionally based on the mill levy of the taxing authorities within those communities.
    For communities that lease their electric system to a Nebraska rural system, lease agreement fees are calculated on gross revenues received from customers located within the community’s service territory and are set by the local council or board, typically ranging from 5.0% to 12.0%. Nebraska rural systems return 100% of the lease fees collected to the communities for use at the discretion of the local governing body.
    In a time of rising costs, Nebraska rural systems remain focused on delivering reliable, cost-effective power. By managing expenses responsibly and carefully considering the impact of rates on customers, Nebraska rural systems continue to deliver reliable service while preserving the value electricity provides to the customers and communities they serve.