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LES rates among nation’s lowest for 20th consecutive year

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By The Lincoln Journal Star

Monday, Aug 27, 2007 - 12:11:01 am CDT

For the 20th consecutive year, a  study of 106 cities ranks the rates paid by Lincoln Electric System customers among the lowest in the U.S.

The annual survey compared electric bills at various usage levels and revealed LES’ electric costs are among the lowest for all classes of customers, said the utility’s Rich Andrysik in a news release.

LES rates remain unchanged since the last survey was conducted a year ago. The last rate change was a 4.5 percent hike in February 2006.

Best power plants

Twice in three years, new power plants serving Lincoln Electric System customers are among the best in the world, according to Power magazine.

The August edition named the Walter Scott Jr. Energy Center Unit 4, south of Council Bluffs, Iowa, the top new plant in the world. LES is entitled to 12.6 percent of the energy generated by the 790-megawatt coal-fired plant, operated by MidAmerican Energy Co.

In 2005, the magazine listed LES’ Salt Valley Generating Station, north of Lincoln, as one of the 12 top plants in the world.

The survey said LES’ bills ranked ninth lowest, overall. Residential electric bills were seventh lowest and commercial and industrial bills eleventh lowest.

Andrysik said LES residential customers using 1,000 kilowatt-hours of electricity per month pay $61, or 41 percent less than the survey average of $103.

The city with the highest rate was Cambridge, Mass., where residents paid $201 per month. Boise, Idaho, had the lowest residential monthly bill at $52.

Andrysik said 55 percent of the utilities in the survey reported rate increases in 2007.

“Even with the February 2006 rate increase, the rates paid today by LES customers are just 28.5 percent higher than rates charged 20 years ago, while the Consumer Price Index has increased by almost 84 percent since that time,” he said.

Andrysik attributed LES’ low rates to:  low operating  and repair costs at power plants supplying electricity to the city-owned utility, a conservation program where nine large businesses curtail power use at peak times, and high bond ratings which allow LES to borrow money at lower interest rates.


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stignob wrote on August 27, 2007 8:05 am:
" LOL...Just as I expected, an nice "feel good" article about how cheap it is here and don't feel so upset when the rates go up. "

russell wrote on August 27, 2007 8:23 am:
" Thank you LES management! I wonder if those persons that are always complaining about high taxes and are going to move out of town for lower taxes consider other factors such as this? "

Hello LJS ? wrote on August 27, 2007 8:48 am:
" Article does not identify "survey" source! LES has NO solar programs, NO biomass and minimal wind generation initiatives. Nebraska 49th in the U.S. This Happy Valley type article lulls sleepy old Lincoln into missing the point. Little energy diversification or innovation. Another salute to the Good Old Coal Boys. "

Yea I did wrote on August 27, 2007 9:04 am:
" Take into consideration the rates before moving from lincoln. I now pay $ .07 a kw. But, with property taxes being about one fourth of lincolns I feel I am still getting a good deal. My average electric bill is $110. now remember I only have electric to pay as the house is all electric. I don't have an 80 dollar electric bill + a 80 dollar natural gas bill. One other thing, all surveys can be conducted to get the answer the company wants. Take politics for example. Russell, please do your homework before embarrassing yourself and others. "

chazz wrote on August 27, 2007 9:05 am:
" Here you go whiners... "

Be aware wrote on August 27, 2007 9:10 am:
" It seems everytime it is published that LES rates are among the lowest in the country we get hit with a rate increase. I've lived in three other states and my electric bills are no cheaper here than in other places I've lived which are south with warmer temps. "

Hummm wrote on August 27, 2007 9:18 am:
" How do you explain my gas bill, one person living alone, using hardly more than a 100 Watt bulb, don't cook, a water heater is the main thing, yet my bill is as high as where I use to live with Cinergy/Duke Electric and they pay dividends??? And my property taxes are four times higher here. State tax double, vehicle taxes in former state $300.00 and here are $650.00. No wheel tax. I've got a heck of alot more expense here, and I've got the bills/receipts for the proof in black & white. So quit the braggin' as usual!!! Just an office call to a doctor in my former city is $65.00, here its $140.00 just to walk in the door??!!!! I have neighbors that moved back from Calif. and they fly back to Calif. to see their doctors because its cheaper!!!!!! "

Frank wrote on August 27, 2007 10:52 am:
" The fact that Salt Valley was named on of the Top 12 plants is laughable. I was offered a job with LES at that plant when it was being built, but after seeing how poorly LES was running the general construstion of the plant I decided against it. And my suspicions were confirmed after the plant went online I went on a tour and found out that various sub's pulled off the job due to poor management and design, and that they have had numerous mechanical problems above and beyond what is normal during a new plant start up. "

What a town wrote on August 27, 2007 11:40 am:
" Lincoln...No job opportunities for young people, a city stuck in the past with no vision for the future & a public who fights every attempt at progress. But, at least the electricity is relatively cheap! "

RB wrote on August 27, 2007 12:10 pm:
" Sounds like a bunch of crap. Where is the independent accounting report. TAXES included. "

NL wrote on August 27, 2007 12:47 pm:
" Ah yes, another "things were cheaper in the state where I used to live", except they never name the state (probably because all things given, it was still higher). So please tell me, where did you live that was so much cheaper, then why did you move back here, and why don't you go back to the other state. For us to believe you, you need to explain a few more things than " And my property taxes are four times higher here. State tax double, vehicle taxes in former state $300.00 and here are $650.00". I also find it hard to believe that your friends fly back to California to see their doctors because it's cheaper. Sounds like an un-truth to me. P.S. we're talking about the electric bill not the gas bill. "

JP wrote on August 27, 2007 1:13 pm:
" Yep, here comes the rate hike. Each time LES releases this type of data, a rate hike comes about 2 months later. "

PD wrote on August 27, 2007 2:17 pm:
" NL, I'm the neighbor that flys back to Calif. to see the doctors, from Omaha too, and I frankly don't think its any of your business as why, who, where someone lives, or anything else!!!!! This was suppose to be a free country last time I noticed, of course not in the dictator state of Nebraska.!!!! "

for NL wrote on August 27, 2007 3:15 pm:
" I think we have all seen your skepticism before in blogs. If you would take a big risk to go outside lincoln and heaven forbid the state line of nebraska you would see there is a whole world out there for your delight. While living in lincoln I knew quite a few citizens who were born, raised and by god going to be buried in lincoln without knowing anything else. It's a small city not new york where you can find everything within the limits. Take a 400 mile ride some week and see what else is out there. Just why do you think the younger people are leaving and the older ones want to just can't afford the price of the move. "

NL wrote on August 27, 2007 3:59 pm:
" I'm just asking the names of this "state" where everything is low, yet living is great. Since it was written in a comment, that opens up the dialog to ME to ask where this land of milk and honey is. I find it hard to believe with the air fare, that it would be cheaper to fly to California to see a doctor, than to visit a doctor here. If not believing everything that is written is being a skeptic, than that must be what I am, but I'm certainly not gullible . As to leaving Nebraska, you would be surprised to learn that I have traveled, (yes gasp, beyond the state line) and while other states are nice to visit, they have their own set of problems. In fact, you are wrong to assume I even live in Lincoln. I guess I'm still waiting to learn what state is better and why. I'm not the first person who has asked this question! "

pdl wrote on August 27, 2007 5:02 pm:
" Everyone is free to do what you want. When you find that great city with no crime, great paying jobs, cheap clean energy and super low taxes, invite us all to join you. I think those wind generators cost $1 million each. LES customers had an opportunity to buy into it. I do wonder if the survey grouped the utilities together with other public utilities. Not comparing apples to oranges. If I could afford it, I would invest in solar power. If enough people got into that, the govt. would jump right in there to put a tax on that to. "

JPB wrote on August 27, 2007 6:48 pm:
" Thank you, LES for great service and low rates! "

John wrote on August 28, 2007 4:24 am:
" Thats right. Let us all take solace in the fact that our electricity is so low. There is not one thing else that is cheaper. Is this supposed to make us feel better since we live in the 6th highest state in the country? what a joke. I am moving to Wyoming. "

richard wrote on August 28, 2007 5:57 am:
" what kind of property taxes does les pay? "

... wrote on August 28, 2007 7:12 am:
" About $9.1 million: http://journalstar.com/articles/2007/04/21/news/local/doc462953383eb2d011678779.txt "

Chris wrote on August 28, 2007 7:15 am:
" Nebraska tax rates are ridiculous, but I don't understand why all that whining is focused under this article. Their rates are low, so maybe they are doing something right. I would like to see renewable energy improvements, though that might be one of my few complaints. I work a late shift and have had many LES employees come in and out on bad weather nights... they work extremely hard and I wish to thank them for that. The people I have met seem to be a good group of people. Thank you! That being said, there is always room for improvement, but LES seems to be doing a good job. "