What's Happening?
Southern Public Power District (SPPD) has announced a 2.5% increase in energy costs for its residential customers, effective January 1, 2026. This marks the first rate increase for SPPD residential customers since 2012. The decision was made during the SPPD board
of directors' regular monthly meeting on November 12, 2025. Alongside the rate increase, there will be a 50% reduction in the Power Cost Adjustment (PCA). Residential customers consuming approximately 1,450 kWh per month will see an increase of $5.70 per month before taxes. Despite the rate hike, the average residential customer will still pay less in 2026 than they did in 2013 due to previous rate reductions.
Why It's Important?
The rate increase reflects rising wholesale power costs from Nebraska Public Power District, which supplies SPPD. Nearly 70% of every dollar collected from SPPD customers is allocated to cover these wholesale power expenses. The increase is significant as it highlights the challenges faced by power providers in maintaining affordable energy amidst rising supply costs. This decision impacts residential customers who will need to adjust their budgets to accommodate higher energy bills. It also underscores the broader issue of energy affordability and the need for strategic planning to balance cost and reliability.
What's Next?
SPPD will continue to engage in meticulous planning and financial forecasting to ensure that current rates support necessary maintenance and strategic investments. The board will likely monitor the impact of the rate increase on customers and may explore additional measures to mitigate the financial burden. Customers may also seek ways to reduce energy consumption to offset the increased costs.
