tuesday, november 25, 1980
daily nebraskan
page 3
LES approves rate hike,
monthly rate adjustments
By Steve Miller
Lincoln Electric System board members
Friday approved and sent to the City
Council a proposal for 17.6 percent over
all rate increase for 1 081.
According to Harold Simmons, LES
public information director, there is wide
variance in rate increases for different
groups because of the difference in de
mand for services.
While residential customers could face
a 20.8 percent increase, commercial users
would have only a (.o percent increase.
Simmons also said that rates would be
based on consumption within the resi
dential division. The increase would
only he 15.2 percent for those who use less
than 250 kilowatt-hours of electricity per
month, but would be 26.0 percent for
those using more than 5,000 kilowatt
hours per month.
Simmons said it is rare for anyone to
use less than 250 kilowatts or more than
5,000.
The board also approved a production
cost adjustment plan for future rate
adjustments.
"Our problem is that we adjust the
budget once a year," Simmons said. "Then
the problem is how close the budget comes
to our estimates. If our costs were not as
expensive or more expensive than our
estimates, we've got a bad budget problem.
"Now, if prices rise more than we es
timated, we either bite the bullet and have
problems at the end of the year or ask for
a midyear increase."
The production cost adjustment is to
adjust rates monthly, Simmons said.
Surplus money supplies could have been
refunded to customers at the end of 1078
and 1070, Simmons said, but in 1080
rates would have risen.
Simmons said public comments at
Friday's meeting provided no constructive
suggestions.
"Other than saying they didn't want
the increase and asking that we not in
crease rates they didn't suggest anything
for us to do," Simmons said.
"The rate is set only to meet budget
requirements and we already have a bare-
bone budget."
Inflation was the main cause for the
increases, Simmons said, explaining that
some LES supplies may go up in price
as much as 30 percent.
LES also must pay S3 million to $4
million for repairs on a turbine at the
Cooper Nuclear Station near Brownville,
Nebraska.
"For the last four years we have been
below the rate of inflation," Simmons
said. "This is a bad year and the rates
will go up for 108 1 , but we expect them to
go back down in 1982."
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