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Mayor: Proposed 10.1 percent LES rate hike is step in right direction

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By ALGIS J. LAUKAITIS / Lincoln Journal Star

Friday, Jul 18, 2008 - 06:31:22 pm CDT

Lincoln Mayor Chris Beutler says a 10.1 percent rate hike proposed by the Lincoln Electric System Administrative Board is a step in the right direction.

“I’m glad that the board is being sensitive to public opinion and trying to hold the rates down,”  Beutler said.

The mayor said he and his staff will examine the board’s rationale for the proposed rate hike and make constructive suggestions.

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Graphic: Average 2008 residential monthly bill by state

On Friday, the LES board unanimously proposed a 10.1 percent systemwide rate increase to deal with a projected $9.3 million shortfall by year’s end. As part of  the rate package, the board also wants to reduce the utility’s operational costs by $1.1 million and use $1.5 million from its Rate Stabilization Fund.

A week ago, Beutler and LES Administrator and CEO Terry Bundy squared off publicly over news the utility would seek a rate increase, perhaps as high as 12 percent. The mayor said such a jump was unacceptable in such a difficult economy; he threatened a veto and withdrew his proposed 1 cent increase in the city property tax rate. Bundy accused Beutler of using the rate hike as a scapegoat for city budget issues.

The Lincoln Employers Coalition, a rate watchdog group made up of the city’s 25 largest employers, also blasted the earlier proposal, saying that when combined with a 5 percent increase this spring, it would amount to a 17 percent rate hike in one year.

“We appreciate anything the board can do to lessen the impact on the employers and citizens of Lincoln,” coalition spokesman Bob Caldwell said Friday.

“Our concern and disappointment is that in less than a 12-month period, we will have over a 15 percent increase in electric rates,” added Caldwell, president and CEO of Hampton Enterprises.

LES management plans an Aug. 5 public hearing on the proposed 10.1 percent rate hike. Afterward, the board will vote to forward a rate increase to the City Council.

If the 10.1 percent hike is approved by the council, a typical residential customer would see an $8.50 increase in his or her monthly electric bill beginning Sept.1. The annual increase would be $102.

According to LES, higher wholesale energy and power generation costs, especially skyrocketing natural gas prices, caused the utility to seek a rate hike for the second time this year. A 5 percent rate hike took effect March 1.

“Just as the increases in fuel costs have been difficult for LES, we understand they will also be difficult for our customers,” Bundy said. “As we have in the past, we will work with our customers through this time of rising costs.”

Last year, about 17 percent of LES’s energy was generated by natural gas, compared with the national average of 22 percent for utilities. This year, LES said,  about 10 percent will be generated by natural gas, because of the utility’s partnership in the Walter Scott coal plant south of Council Bluffs, Iowa.

LES plans to reduce its operational costs this year by cutting travel and training expenses,   eliminating customer surveys by consultants, leaving some jobs vacant and deferring maintenance on generating equipment until next year, Bundy said in an interview. There will be no layoffs, he said.

“I expect the Employers Coalition to have concerns and to want to know the details about the numbers and we are certainly willing to provide those,” he said. “I think there will be a lot of (coalition) members ... that will recognize what is happening to fuel prices. They use natural gas like we do.”

Before the vote, Kathy Campbell, chairwoman of the LES budget and rates committee, warned that there may be more rate increases as the utility grapples with escalating energy costs.

“It’s extremely important to remember that this is not a one-time event,” Campbell said.

Bundy said LES might need a 1 percent to 4 percent increase in 2009, depending on year-end adjustments from its partner power plants, like Laramie River Station in Wyoming, and what happens to natural gas costs.

Campbell said the budget and rates committee focused much of its time on the utility’s Rate and Stabilization Fund. LES has used the fund to keep  a lid on rates in the past. But over the years, the fund has been depleted, from $12 million to about $2.4 million.

“If we had a lot of money in the Rate Stabilization Fund it would make our decisions today a lot easier, but we don’t,” she said.

Omaha Public Power District, for example, has $32 million in its fund, Campbell said, which allows it more flexibility and helps the utility cover rising energy costs.

Board member Dawn Rockey said she didn’t like to see LES’s Rate Stabilization Fund depleted, but added: “I think using the $1.5 million is doable.”

Rockey said she is frustrated because LES officials went to the Lincoln City Council a couple of years ago to ask for the authority to use a “power cost adjustment” tool to deal with escalating energy costs. Similar to a surcharge, the adjustment would allow LES to adjust its rates automatically to reflect market conditions.

“We were blown out of the water,” Rockey said. “Now, maybe members of the council and the Lincoln Employers Group will understand how a PCA would be used in this situation.”

Bundy told the board LES doesn’t have the tools it needs to deal with escalating energy prices and the financial shortfall. They include: a higher level of debt coverage, more money in its Rate Stabilization Fund and the Power Cost Adjustment.

Caldwell said the coalition  has generally supported having a reasonable amount of money in the Rate Stabilization Fund to cover swings in power costs, but is “absolutely” opposed to a power cost adjustment.

“We believe that is not the answer. All a PCA does is allow LES to raise rates whenever they want to without asking for a vote,” Caldwell said. “If we had a PCA today there would be none of these hearings and they would have raised rates by 10 percent.”

Bundy said a power cost adjustment would be a good tool for LES, but it does not have plans to implement that right now. He said the utility may consider a PCA if customers become more comfortable with it. In the past, they have reacted adversely to such a proposal.

“We will find a way to pay the bills,” said Bundy, noting that he is more concerned about the utility’s  financial ratings with bond agencies. Those ratings allow LES to borrow money for capital improvements.

“What we are seeing here is not that unusual,” Bundy said. “These rate increases are happening across the country. Our timing is earlier because we don’t have the tools to deal with it on a short-term basis.”

Reach Algis J. Laukaitis at 473-7243 or alaukaitis@journalstar.com.


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wrote on July 18, 2008 11:15 am:
" Didnt they just raise rates? Need for competition!? "

 mik wrote on July 18, 2008 11:15 am:
" The City Council better do the right thing and vote this down.. People in Lincoln are strapped for cash, can barely pay all the bills, better lower property taxes then.. Where do these politicians think the money is going to come from? Mr.Mayor how are you going to handle this ? "

 come on... wrote on July 18, 2008 11:16 am:
" A PCA would have made it possible for an internal increase in rates without public process. When an entity is asking for double digit increases they should have to face full public scrutiny and hear what
rate payers have to say. Period. City Council was right on the money on that one. "

 TG wrote on July 18, 2008 11:18 am:
" Thanks for providing a nice sugar-coating, LES. What you are not saying is that households will pay for their own increase, but will also pay for increases when the city, state and businesses have to try and cover this monumental and ridiculous increase. Higher tax and higher prices on goods and services combined with the household energy bill is almost like a triple increase on Joe Citizen who is already struggling to get by. Thanks, LES for making it 10.1% harder to make it in tough economic times. "

 Reality wrote on July 18, 2008 11:20 am:
" Looking at Aquila's(now BHP) natural gas costs for the summer compared to the fixed price option in 2007-08 time period, if June and July actuals carry forward to next year, could be looking at a 30% increase in next winter natural gas prices. Happy to have invested in the high efficiency heat pump last year, an electric 10% increase looks pale in comparison. "

 Mike wrote on July 18, 2008 11:25 am:
" Why does LES advertise at movies? Are they afraid I'll take my electricity needs elsewhere? "

 Vote no wrote on July 18, 2008 11:26 am:
" 10%? That is a little steep, with more increses next year. Seems the only thing that doesn't go up by double didgit precentages is my pay. "

 Alan wrote on July 18, 2008 11:30 am:
" I'm amazed that the mayor claims to have been "blind sided" by this rate increase. Has he not been reading the papers or filling up his own gas tank? At least I have some control over my use of electricity. I can choose not to run my A/C or TV set. I have no control over how much the school and city taxes me. I only know if I refuse to pay a man with a gun will show up sooner or later. If I refuse to pay my electric bill they will disconnect me. If only I could disconnect my city and school "service" so easily. "

 SB wrote on July 18, 2008 11:30 am:
" I guess I’ll just have to reduce my energy use by 10.1 percent - or maybe I’ll just complain about it. "

 mitchy_v wrote on July 18, 2008 11:31 am:
" let the complaining begin "

 Outside the Box wrote on July 18, 2008 11:35 am:
" Anybody else wish our state made better use of it's potential for wind energy? "

 Up Up Up wrote on July 18, 2008 11:35 am:
" The energy situation in this country is looking worse and worse. What has our leadership done to address this? Rates continue to climb. Isn't alternative energy starting to look like a good business? "

 WHY NOT wrote on July 18, 2008 11:36 am:
" Heck...why not. Let's just raise the rates of everything!! Eating is just a suggestion anyway, who needs groceries when you can have gas in your car and lights!! I love this economy...where a dollar buys you nothing. Absolutely nothing. "

 Hey mik wrote on July 18, 2008 11:41 am:
" The people who are strapped because they bought a house that was more than they could reasonably afford and drive gas-guzzling SUVs don't get any sympathy from me. I do feel bad for the truly poor. As for our family, we can handle the increase due to living within our means. Not happy about it, but can handle it. "

 Max A. wrote on July 18, 2008 11:42 am:
" LES needs to reduce their advertising budget, by not advertising! They have no competition! There is no reason for them to advertise at the movies and there is no need for all of the color inserts that come with my bill. In addition, LES could save money, by utilizing plain white envelopes. No need to pay for the color on them. As a homeowner, I'm beginning to think that renting might be a lot cheaper! "

 Please be quiet whiners... wrote on July 18, 2008 11:50 am:
" If you don't want to pay the increase - stop using electricity. LES isn't doing this - the world we live in is doing this. We all have choices. LES doesn't have a choice but to pay the costs associated with serving its customers, including the whiners. I hope to see every one of you at the rate hearing, and I hope that every one of you has a "better idea" - do you suggest that LES just stop paying its fuel bills? That sounds BRILLIANT...... until their suppliers stop selling them fuel and purchased power. LES can't give away money it doesn't have like the Federal Government and the IRS can. "

 DEAR LES wrote on July 18, 2008 11:54 am:
" I just asked my boss for a 10% raise to cover the increased costs of everyday things. He told me no. Therefore, I'm going to have to deny your request. Guess you'll have to learn to live like me: make due with what you've got.

Best of luck on maintaining your bloated management salaries and continuing your price hikes!

The Other JR "

 hondadog wrote on July 18, 2008 11:54 am:
" I'm going to protest LES. I have decided to go down to my local hardware store and purchase one of the windmill kits for my home. Ha Ha. take that LES. "

 Comm UnSense wrote on July 18, 2008 11:55 am:
" Mr. Foley could help us feel better about this by publishing an audit of LES. If we knew there was no waste or abuse, it wouldn't be so hard to take. How about it Mr. Foley? "

 net metering wrote on July 18, 2008 11:56 am:
" Does LES allow customers with wind or solar to net meter? The legislature propose a bill that would allow it but it didn't pass. Some states actually give rebates to install solar panels on the grid. "

 Well wrote on July 18, 2008 12:04 pm:
" You can be sure next winter the heating bill will go thru the roof!!
People struggle with these utility bills everywhere but a good many are
not struggling with the high property taxes Nebraska & Lincoln are. LPS
has plainly raped the citizens of Lincoln and spent like drunken' sailors! They have used the public as a laughing stock and know they can
get every dollar they want for anything they want! Isn't that a wonderful
way to teach children?? The cost of housing for years has been way out
of reach compared to the cities I've lived in. Neighbors who moved from
out of state were sick at the last assessment to find they had paid an
astronomical price for their home, they would like to sell and move out
of this state, but even now with the downturn they can't because they
would loose more than an bundle!! Its not only their house but many many
and now tack on the huge utilities, means theres really no end in sight,
its just exsist!! I as a good many especially in these small towns have
only known the word exsist, and barely. Lincoln & Nebraska have not
progressed and this is the price we're paying. We the "few" are going to
pay a hefty price to survive with the progressive ones in this country.
And you can't keep comparing Lincoln with growing Omaha and other big
cities, thats like comparing apples to oranges, yet this town loves to
snow its citizens time after time!!! "

 me wrote on July 18, 2008 12:05 pm:
" Now, are they going to give us a 10 percent wage increase as well? I think not!! "

 Time for Wind power wrote on July 18, 2008 12:10 pm:
" The worst thing that comes along with living in this state (besides absolutely nothing to do) is wind. Lets use it to our advantage. Farmers could make double what they make off their land for farmer. Lets step into the future for once. "

 Alt wrote on July 18, 2008 12:13 pm:
" This cycle must be ended. Time for LES and us to step up and invest in solar and wind. Why does the price of natural gas increase anyway? The providers are running ads saying supplies are plenty, 60-70 years worth. Are they worried we might begin to get off our apathy and actually invest in solar and wind. "

 Static Boy wrote on July 18, 2008 12:16 pm:
" Walt Canney where are you? "

 Mike wrote on July 18, 2008 12:29 pm:
" I think that's a little steep. Here we are in tough times and LES just adds to it. Way to go LES! Next time I call and my power is out I better get it back on right away since I am paying more for it! "

 Giving back wrote on July 18, 2008 12:31 pm:
" Now kids I'm sure when the energy crisis is over and fuel prices recede LES will gladly cut their rates! Hey a monkey just flew outa my...... "

 Chris wrote on July 18, 2008 12:31 pm:
" ahahahaa! Need for competition? You gotta be kidding me. Check markets where privately run energy companies operate, then compare to what Lincoln pays for electricity. The kicker? When privately run energy companies increase rates, you don't hear about it before hand. You just get a higher bill. No negotiation, no veto power, they do what they want. Man, get a clue. "

 you all have no clue wrote on July 18, 2008 12:31 pm:
" I would love to see all the whiners live without electricity!! and do you people have any idea how many windmills it would take to power a good portion of the city.. and who is going to pay for these windmills???? "

 Thats the problem wrote on July 18, 2008 12:32 pm:
" Here's the deal. LES says "conserve". Bush says "conserve". Well, you know what happens when we conserve? The electric companies don't make as much profit, and they raise rates to compensate. So were damned if we do, and damned if we don't. "

 Dano wrote on July 18, 2008 12:32 pm:
" Can we cut the LES advertising budget? There is no competition for this public commission, so why do we need them to advertise? Kind of like adevertising for City water and Sewer or Lincoln Public Schools. "

 todays economy wrote on July 18, 2008 12:38 pm:
" With fuel prices going up, utility prices will go up. it's a fact!! move to another city or state and see what you will be paying for electricity.. Almost 80% of LES's operating cost are for power supply, not personal... it's unfair to compare the city budget to LES's budget!!!! Get some of those city employees to climb up to a high voltage power line and work on it!! I'll bet most of them wouldn't do it for twice what they make now!! The people of Lincoln are paying cheap rates and getting good service. I'd like to see how everyone would act if that "good service" went away!! " "

 Chris wrote on July 18, 2008 12:39 pm:
" Seriously people. Do you have any idea what a public utility is? Bunch of whiners and complainers. Energy costs are going up everywhere, the dollar is falling in value, lessening our purchasing power for global commodities. The era of cheap energy is over. Learn it, accept it, deal with it, and move on. Quit using so much energy and it's not a big deal, ie. quit driving 2 hours a day going to and from a house that is too big and too far away from where you live. Quit pointing the finger at LES and think that maybe, just maybe, you will have to change your lifestyle in times of a waning American economy and high energy prices. "

 Tired wrote on July 18, 2008 12:45 pm:
" This is rediculous....between LES and taxes in the state of Nebraska how on earth are people supposed to live.....I work 2 jobs and barely make it. My household income exceeds 80,000.00 a year barely getting by. This is pathetic! My daughter is a single mother and works 70+ hours a week just to pay bills and take care of her daughter. LES and the State of Nebraska who doesn't know what to do with all the money they have in reserve should figure it out.......... "

 Star wrote on July 18, 2008 12:50 pm:
" Look, this is all a result of rising fuel prices. None of us likes to pay the increased gas prices when we fuel up our vehicles, but there is nothing we can do about that. The same is true for the power companies. They are stuck paying the increased fuel prices, only everyone wants them to absorb this cost, instead of passing it along. While that would be nice and I don't look forward to my electrical bill jumping up, it is reasonable that they need more money. Where do you think the electricity comes from? "

 Brian in Lincoln wrote on July 18, 2008 1:05 pm:
" How much is LES putting into renewable electricity? Is it between zero and zero? Where are the solar and wind farms? NE ranks VERY high in the ability to produce both, so instead of complaining about how much it costs to generate electricity from coal,natural gas etc, start thinking outside of the box a bit and get in touch with the REAL energy needs of its customers "

 Mrs. Campbell wrote on July 18, 2008 1:05 pm:
" Just wait till Kathy Campbell gets in the legislature. Then you will really see hikes. "

 CS wrote on July 18, 2008 1:05 pm:
" If you make 80,000 a year and "barely make it" I think some prioritizing is in order. Median income for Lincoln is only in the mid 30,000's. My family of 5 live quite comfortably in the low 40,000's and we own our house and two cars. Is it a cookie cutter house? No. Are both cars new? No. It's pretty doable if you evaluate want vs. need. I'm not saying their rate increase is easy for anyone, but you and I are probably going to get a lot less sympathy than many others who make a lot less in Lincoln. "

 Mike wrote on July 18, 2008 1:06 pm:
" We are still way below National average. If we want reliable power the electric coop must be in the black.

The free ride of cheap energy is over, All republicans must thank Ronald Reagan for ripping Jimmy Carter's solar panels off the white house.


http://www.neo.ne.gov/statshtml/115.htm "

 Yup wrote on July 18, 2008 1:10 pm:
" Just read on an Omaha site that OPPD expects its 2009 costs to go up because their new coal contract is $90 million more than expected. I don't know what some of you expect LES to do. It's not like they can just absorb the increased costs. Like it or not, you're either going to have to pay an increase or shut off the circuit breaker. "

 Compare before complaining wrote on July 18, 2008 1:16 pm:
" It doesn't take much to compare what we pay for electricity, to the just about the ENTIRE rest of the country. Historically NE has had some of the lowest rates in the NATION. It is entirely unrealistic for people to see that fuel rates (oil, natural gas, etc.) are climbing - along with prices of everything else (food especially) - and then get upset when electricity rates rise. Electricity is generated by the burning of another fuel, generally coal or natural gas. Wind generation IS on the rise in NE - but it cannot supply much of the demand needed. Anyone know how many THOUSANDS of acres of land it takes to get enough wind turbines to make even dent in the need? "

 Hey Tired wrote on July 18, 2008 1:16 pm:
" We're all having problems making ends meet!! it's not just in Nebraska, it's nation wide. This country need to find a way to get fuel prices down for a quick fix and find different forms of energy for the future. but quit blamming LES and the state of Nebraska! "

 ... wrote on July 18, 2008 1:20 pm:
" $80k a year and you "barely make it"?!?! Are you KIDDING me?! I'm getting by just fine on $50k a year with a house of my own and a car. And I'm not even batting my eye at this rate increase! What are you people spending your money on!? "

 REALLY wrote on July 18, 2008 1:43 pm:
" What are we talking about here?? about $8-$9 a month on average? Really people.. that's well below the national average! Move if you don't like it! "

 Scott wrote on July 18, 2008 1:43 pm:
" I dont know where you people get your sources from but i know for a fact a giant wind turbine powers enough electricty for thousands of homes. i would be willing to pay a 30 plus rate increase if they just built more of these. In the long run do you realize how much money it would save us?? "

 Trip wrote on July 18, 2008 1:47 pm:
" The mayor and LES personnel need to take a trip to Boulder Colorado where tax incentives for customers who install solar. Some customers at times have their meters running backwards. BACKWARDS. LES premise for rate increase is buying more power and at increased costs. Neither are necessary with customers meters running backwards. Of course LES must first allow such a thing. Why wouldn't they today with this "our hands are tied" mentality. Time to think outside the box. "

 paying the bill wrote on July 18, 2008 1:56 pm:
" With the price of energy rising, can you really expect LES NOT to raise their rates? They have to pay for the electricity that we use, and right now they are $9.2 million short with not much left in their reserve fund. I don't think they are doing this to get rich.

A 10.1% increase will only increase my monthly home bill by $5.25, or $63 for the year. I think I can handle that. I do feel for those who are truly poor and may have to choose between electricity and food.

Hopefully it will force big companies/department stores, etc. to rethink how they use electricity. For example, when it's 90 plus degrees outside, do you really need the air set at 70? Most stores are freezing inside and could save money by simply turning up the thermostat.

If a 10% hike will make us better stewarts of energy, and make us look to wind and solar as an alternative, then I'm all for an increase. That's what this country needs to do anyway. Now that it's hitting the pocket book,maybe some energy changes will finally come. "

 Poor Mom wrote on July 18, 2008 2:14 pm:
" Sad. Unfortunate. Will have to make sure and go home and turn the A/C off and my children and I will suffer for it. Sad. Unfortunate. I don't pretend to make 50K a year or 80K. I make $8 an hour. It's people like us who will feel it the most. Sad. Unfortunate. I can protest. I can veto. But the lower income scale, we have no say-so. We meekly accept what is being thrown our way. Sad. Unfortunate. And I know, before the bigots and high and mighty make the comment, I know it's all my fault because I'm at or below poverty level, but I feel I have every right to express my concern, in a mild manner, as you people do. "

 Donna wrote on July 18, 2008 2:17 pm:
" The concept you're talking about is net metering and LES already offers it. "

 Saving wrote on July 18, 2008 2:17 pm:
" I just went out and bought a couple more compact flourescent light bulbs. We try to only run the air conditioning when we absolutely need it; we have ceiling fans in several rooms so it is not so bad. We could watch less TV and be more vigilant about turning off lights. Hopefully a few changes will allow us to absorb the hike without noticing too much. The electric bill doesn't bother me nearly as much as the gas bill. "

 To you all have no clue... wrote on July 18, 2008 2:26 pm:
" actually a private sector comes in to deal with the windmills. Do you know how much power you can get off one? I think you need to do some reasearch on it there buddy. I mega watt can power up 1,000 homes. So even if you built 12 that would be 12,000 homes which would drastically drop electric prices. Does anyone do research before they comment or do they just pull stuff out of no where? "

 Im confused. wrote on July 18, 2008 2:46 pm:
" How is that LES can raise their rates 10% and the City can't raise property taxes 1 cent to help out with the severe deficit? The City of Lincoln employees are having to deal with loss of jobs and a possible reduction in benefits and yet LES can just raise their rates without any cuts whatsover. The City needs the $ just as much as LES does....if not more. How can we justify one increase over the other? I say raise the LES rates 5-6% now and wait to see what natural gas prices do next year and raise property taxes 1 cent. This way both facilities can see a means to an end. "

 homes are not big consumers wrote on July 18, 2008 3:32 pm:
" Relatively speaking, your average home is not a big consumer. It looks good on paper to say 1 wind turbine can power 1000 homes. But to get enough wind power for a city is another thing entirely. Utilities have to prepare to serve peak summer loads - industrial & residential - and you cannot count on the wind to be blowing at the right time! Until they create a better way to store electricity, wind power is nice & should be fully utilized - but it can only be a small piece of the resource mix. "

 Time for renewables wrote on July 18, 2008 3:33 pm:
" Sorry, but feel lucky lincoln that it didn't jump higher. Better get on the renewable energy bandwagon like Rockport, Missouri and get off of gas and go pure electric. Because natural gas prices at chicago continue to climb every day even though oil has been down over the past two weeks. And gas is expected to continue to go up! Just wait for December and you'll start to cry. "

 to Im confused wrote on July 18, 2008 3:45 pm:
" LES is cutting there budgets!!! do you want electricity?? It's not LES that controls the cost of power!!!!!!!! If you only had a clue!! If LES is short on money then you will not get the service that you are used to! remember that next time there is a power outage. You people better hope that we don't get a major Ice storm this winter without any money left in there rate stabalazation fund.... we'll all be out for a long time unless FEMA steps in.... and we all know how that goes. "

 Time for renewables wrote on July 18, 2008 3:46 pm:
" The city of Rockport, Missouri runs on all renewable wind power for electric from 4 windmills just outside of town(so if you have a completely electric home, which you should, you are all renewable).

I don't know why Lincoln can't do the same? There is more potential in North Lincoln (By unuseable land around the dump!)for 2.5-3 megawatt windmills (much larger than the current .5 megawatt ones that are there). Plus, the new KANTANA windmill plant in Columbus will be able to build these windmills. Thus, increasing jobs/manufacturing in NE that produces renewable energy for nebraskans. A POSITIVE DOUBLE EDGED SWORD!!! Is it that difficult?!?! Get on in LES!!! "

 JRP wrote on July 18, 2008 4:22 pm:
" This is for "REALLY". Ok, it's only $8 or $9 per month. Now add to that the $15/mo the city wants. Now add to that the $15+/mo LPS just gave themselves. Suddenly we are paying $40+ per month MORE than last year for the exact same services. If we give it to them, they will take it instead of coming up with alternatives or other possible solutions. LES, LPS and the City work for us, not the other way around. Sometimes they should have to go without, just like we have to! "

 frivelous wrote on July 18, 2008 4:34 pm:
" I'm not technically considered poverty level, but I'll tell you, I'm struggling BADLY. I live in an apartment, I don't have cable or internet (or even a computer) or anything that I would really consider a luxury, except maybe I could move to a cheaper apartment--but I think I'd be comprimising the safety and security at my current complex. I don't know. It's hard for a lot of people, and I just fume when I read a couple of posters point fingers and make assumptions about people and their lifestyles when they honestly express that this rate increase is going to hurt. It's hurting me. I'm not an irresponsible schlepp by any means, and I sometimes cannot afford to pay all of my bills each month. A lot of people that I know are struggling, so just keep your judgmental comments to yourself about how brilliantly you handle your income. Most of us probably wouldn't [want to] trade lives with you, anyway. "

 I wrote on July 18, 2008 4:54 pm:
" I'm so glad that my meter is broken. They saw it, shrugged their shoulders, tagged it and moved on. I wish you were so fortunate.
I agree with the advertising. Why? For What? To who are you hoping to persuade to use your service? Why the inserts? Who actually reads them?Why don't you use the same type envelope to mail your bills as Lincoln Water System. They've had the right idea for years. More business should follow suit. "

 DH wrote on July 18, 2008 6:20 pm:
" To you all have no clue, I don't know how to start, 1 mega watt won't come close to powering 12000 homes. the average home uses 3.2 Kw. a wind mill needs 25-30 mph winds to reach FULL RATED CAPACITY. The wind to power curve is not linear. Yes the wind blows in Nebraska but not near as hard as the people of Linocln that don't understand that competiton has NEVER brought the price of anything down. The cost to build a wind turbine is about $2,000 to $2,500 per Kw. So you green weenies up front the 3,000,000.00 to build a new wind turbine and connect it to your houses. However, don't complain when the wind is just like it was today, less than 8 mph and 85 degrees. Ya'll can sit in the dark and sweat!! "

 JoBeth wrote on July 18, 2008 6:33 pm:
" They just said on the Channel 7 News that coal prices are going up 65% this year. That is a budget increase of 9 BIllION, that's right it's a B not an M dollars this year. Maybe we shold be thankful that the increase is only going to total 17%. Folks, face it, we are just going to have to pay it sooner or later, and I think sooner is here now. "

 Democrat wrote on July 18, 2008 6:44 pm:
" I would suggest that LES puts up a windturbine over the City County building. Lots of hot air and spin there! Maybe in the Ridge too.
Now lets look at North Lincoln. I would suggest that Salt Creek be dammed up and used for a hydro electric power source. Everyone in Lincoln knows that Lincoln is full of stuff to power this project. "

 whatever wrote on July 18, 2008 6:47 pm:
" This is only the beginning. As I have said over and over and over. The issue will soon to turn to 24/7 availability. Without new power generation we will likely not have electricity on demand in a few short years. The problems are real, the problems are profound and we simply don't have the leadership, a knowledgeable citizenry or it would appear the will to find a solution most of us can agree upon. "

 Douglas wrote on July 18, 2008 6:59 pm:
" I see no need for this hike. LES has two windmills off the interstate that should have made enough energy for the whole town by now. That awesome wind power has helped out! Um...no.

I would like to know how much they spent on the windmills, and furthermore, how much energy they contribute...other than lighting up the red light on top of the windmills. "

 Stop Complaining... wrote on July 18, 2008 7:33 pm:
" I guess some of you will just have to stop paying $100s of dollars a month for your cell phones and your cable TV and all the other extras people seem to think are "necessities" if they're having trouble paying an $8.50 increase for electricity! If you can't make it on an $80,000 salary, then you need some basic finance classes. Our energy prices in Nebraska are still a bargain! "

 Hey JRP wrote on July 18, 2008 8:46 pm:
" This is for JRP - you need to re-check your figures. The city didn't ask for $15 a month. It was $15 a YEAR. Now THAT'S the bargain. I will gladly pay $15 a year for money for repaving streets and having some parks mowed a little more often. We keep saying Lincoln is a beautiful city but we're sliding down a slippery slope to mediocre pretty fast. "

 were fortunate for what we have wrote on July 18, 2008 9:58 pm:
" These comments are amazing to me. We don't realize how good we have it here, do we? Our electric rates are among the very lowest in the country, thanks to it being a well-managed public utility. Thank goodness we don't have the mess of the privatized electric companies! LES is facing increasing costs just like the rest of us, and is simply trying to pay the bills. We are so fortunate to have LES and have extremely low electricity rates. It's time for us to pay the piper on this one. Thanks to the Lincoln Journal Star for an editorial that's right on the money on this issue. Any chance the Journal Star would be willing to do some reporting to compare what we pay and our experience here with, say, California?

http://journalstar.com/articles/2008/07/18/opinion/editorial/doc487e6ab063733818569798.txt "

 kevin wrote on July 18, 2008 10:17 pm:
" I am glad I moved to Beatrice so I am not effected by it. "

 Mervin wrote on July 18, 2008 10:37 pm:
" Memories are short, remember Gov. Gray Davis of California prevent the electric utilities from raising there rates and consequently electric utilities went bankrupt. Today brown outs and power outages are common and there rates are the one of highest in the country at 11.92 cents/kwh. Lincoln's average rate is 6.12 cents/kwh. LES staff has show a great track record for the lowest rates for the citizens, where as democrat Mayor Chris Beutler is just another politician doing what they do best, increasing your taxes and in this case in the end raise your electric rates. "

 Neil wrote on July 18, 2008 11:20 pm:
" The cost of electricy is going up because of the coal and natural gas that is used to make it. Its happening nationwide. That $8 a month average is cheap compared to how much more money I spend a week in gas. I'm worried about my natural gas bill this winter... "

 nuts wrote on July 18, 2008 11:42 pm:
" If you think that you'll escape higher energy costs by moving, you just might be crazy. Increasing energy cost will force all of us to do what has been long overdue - conserve non-renewable energy sources and look for alternatives. $8 a month...come on people! For smokers, that's a couple packs a month, for those of us that drive through McD's at lunch, that's 2 lunches a month. If you don't like it, turn off your A/C, turn off your lights and deal with it! "

 wat wrote on July 18, 2008 11:49 pm:
" A potential 15% increase in one year DOES seem like a lot. However, if the council had viewed increases with a bit of early adjustments and forsight, without completely depleting our rate stabilization fund, perhaps we would not be in this painful situation. A $9 million dollar budget shortfall is far more important than the complaints some people make on here. $8.50 is not too much to ask per month when facing some of the lowest rates in the country and such a shortfall. Since LES has also made strong efforts to reduce their overhead, then I don't have a problem. And I, by no means, have available money. I just think it needs to happen. What I do have a problem with, however, is the fact that we weren't eased into this situation. Come on, council, I know hikes might make you unpopular for a month, but you could have prevented a shock like this! "

 Henry wrote on July 19, 2008 8:01 am:
" Who in the heck has an average electricity bill of $85? I know that for our household a 10% increase means an average of almost $20 a month. We can afford it, how many people won't be able to? Single people and families who make less than $30k per working adult are already on such a tight budget that the combination of all the increases across the board makes it almost impossible. "

 Omahan wrote on July 19, 2008 8:57 am:
" Lincolnites, you've been bamboozeled. Bundy said a 12% increase last week to frame the debate. Now that they are talking about adding a 10% increase to the previous 5% increase, it looks like they are "scaling back" and "being responsive" and "meeting in the middle" while the cold hard fact is, they are raising your rate by 15% in the first 7 months of 2008.

Don't let the LES spin doctors roll over you with a smile on your face. "

 Amazed wrote on July 19, 2008 9:11 am:
" WOW, way to stick to your guns Mayor! You sure showed LES! Got the proposal down a whopping 1.9%. Your comments "I'm glad that the board is being sensitive to the public opinion and trying to hold rates down". Give me a break, this will come back to haunt you at election time unless you step up and recomend a 0% based on LES's proposed 17% rate hike in one year! "

 WELL wrote on July 19, 2008 10:23 am:
" He sure flopped from veto at 12% to hey 10% looks pretty cool, didn't he. "

 JRP wrote on July 19, 2008 4:31 pm:
" Ok, without rechecking exact figures, let's see, average LES customer's electric bill is about what, $150+/mo (mine is just below that and I have a very efficient house, I'd say it probably closer to $200). So $15/month for LES, a low ball guess of $15/ month for LPS's $30 million budget increase this year ($263 million to $293 and that's just the general fund), and let's add $2/month for the City (their estimates are on the price of a $150,000 home, about 2/3 the median in Lincoln).
Let's see that puts us at $15 + $15 + $2 for $32/month minimum increase for an extra $384 per year in living costs. Should we add any increases from the added gas tax that just went in, the added charges for garbage collection and most likely an increase in water and sewage rates?

I think "hey" missed the point. These entities work for us. If we, the citizens are having hard times and have to sacrifice extras (and some are sacrificing necessities), then these entities need to as well. "

 To frivelous wrote on July 19, 2008 5:22 pm:
" then do something to change your situation. I am so sick of people who complain about their life but do nothing to improve it.You should try living in a big city and see how much they charge for electricity. "

 Did You know wrote on July 19, 2008 5:46 pm:
" LES just raised the cost for electricity 11 percent to UNL and their campuses. Most people don't even know that the U is a city unto itself in terms of utilities. LES and UNL negotiate rates for service to campus areas separate of that of the city of Lincoln. So, in essence LES got an increase. "

 wow... wrote on July 19, 2008 6:40 pm:
" JRP, your house must not be nearly as efficient as you think it is. My house is almost 20 years old (i.e. older eqpt, insulation, etc), an "average" size (about 1400 sqft), and even during the summer my bill barely gets above $120/month. I probably average about $75 over the whole year. I suspect that the "average" bill here in Lincoln is probably closer to mine than yours, unless, that is, you believe that everyone has 3000 sqft homes here...which if you've been north of O, you'll know they don't... "

 hd wrote on July 19, 2008 7:50 pm:
" Let me see if I remember this right. LES asked for a power cost adjustment and the city council said no, LES got their 2008 budget approved by the city council, part of that 2008 budget was a rate increase the first part of the year. The city council(same ones that approved the budget)cut the amount of rate increase. Now LES is trying to do the right thing and be proactive (that means acting in anticipation of future problems, needs, or changes) So to sum it up, IF the CITY COUNCIL would have let LES run their business it would appear this rate increase would not be as severe. Thank you Lincoln City Council, LIBA and the Coalalition of Lincoln Businesses for poking your noses in places they don't bleong. LES has an extremly competent governing body that has functioned just fine. Now that I relflect back on my 40+ years of living in Lincoln I do not recall ever once hearing LES tell the other city departments how to run their business. GOOD JOB LES to bad you have to work in Lincoln! "

 sigh wrote on July 20, 2008 12:23 am:
" Well I make 12.50 an hour f/t self sufficient single mom but I cant even buy a another fan to cool my duplex as to keep my energy (elec.) bill down. We stick it out for the most part but I still need lights, food & gas so I choose food for us & get the "shut off notice your lights" notice every month. I dont go places, spend friviously but LES, AQUILA,TWC(luxury I know) or LWS etc... dont see it from a struggling citizens point. Depressing. "

 re renewables wrote on July 20, 2008 10:31 am:
" Great for Rockport, population 1300. We have 20 times the people not to mention business and industry. So they have 4 turbines, we would need 80 to 100 just to match their output per person. Don't compare apples and oranges.
Get a grip people, energy costs are rising all over the country not just here. We have low rates compared to most of the country. "

 reality check wrote on July 20, 2008 1:28 pm:
" If you're making $12.50 an hour and you're living paycheck to paycheck, you either have a lot of "necessities" that aren't really, or else you need to learn how to budget (i.e. you have money going out for things that you aren't adding up). Do you smoke? Do you have a starbucks coffee every morning on the way to work? Some of us are making do with less than that and are keeping up. And yes, TWC *IS* a luxury that you don't HAVE to have, or at least you could cut back to the ultra-basic (which is about $15/month versus $55/month for the "basic" cable). There's an extra $40 right there for ya (at least) and I didn't even have to break a sweat... It's rough for all of us, but unfortunately, that's the way the world is right now. Costs are going up everywhere and wages aren't. I don't know how we're going to make it, but it sure seems that Bush and congress don't care... "

 joe wrote on July 20, 2008 8:12 pm:
" Consider yourselves lucky. In LA, So Cal Edison is likely proposing a 30pct rate increase. "

 JRP wrote on July 23, 2008 5:19 pm:
" Wow, I do live North of O st, quite a ways actually, the cornfields are 2 blocks away north of the interstate. Did I mention my house is completely electric? Heat pump, stove, oven ect. That puts my price up a little. I have friends who have gas/electric and if you add them up, I come out ahead and my bill is closer to the $120 range (monthly average including winters) due to the last 2 rate increases (around 14% over the last 1.5 years). 3 years ago my monthly bill was around $75/month (for a 1400 sq ft home). "

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