Customer Newsletter, January 2009

Board Reviews Rate Study Results, Adjusts Rates for 2009

In December, Southern Power District's Board of Directors reviewed a rate study which examined the implementation of an 11-percent rate increase to be put into effect on January 1, 2009. The study provided an in-depth look at Southern's rate structure, and outlined the best allocation of the rate increase based upon the cost to serve each individual class (irrigation, residential, commercial and large power customers) There are a number of factors that required the District to take a look at the future performance of our rates.

First, Nebraska Public Power District announced in November that wholesale rates will increase by seven percent effective January 1, 2009. This increase was implemented in order for NPPD to pay for increased expenses associated with rising fuel and operating costs, in addition to investments made in infrastructure.

In addition to the increase in wholesale costs, Southern is also anticipating the need to make improvements to our existing facilities, which are part of an increased capital expenditure budget for 2009. Additionally, the District recently approved the sale of $30 million in taxexempt bonds, which were acquired to pay for Bond Anticipation Notes that came due in December 2008. The BAN funds were utilized for emergency funding following the 2006-07 ice storm. The rate adjustment is needed to maintain a strong financial picture for the District, and to continue our commitment to provide infrastructure that delivers reliable electric service.

With the upcoming rate adjustment, the average increase is 11 percent for all rates, with individual rate increases being no lower than 9 percent or higher than 13 percent.

Given the uncertainty in our national economy, we want you to know that we will continue to work hard to use the funds gathered from your rates as efficiently as possible. Although we have seen a trend of rising costs in recent years-and have taken on added costs handed to us by mother nature-keeping your rates as low as possible remains a strong commitment to each of us at Southern Power District.

Other stories you'll find inside this edition:
  • Energy Wise Tip: Apogee Calculator...Go Online for Energy Savings!
    • Energy costs are rising. Wouldn't it be great if all types of energy efficiency advice were in one place? Somewhere you could sort through and make sense of the mountain of information? More>>>
  • Electric Heat Incentives
    • Southern offers an incentive program to customers who convert their existing, fossil fueled heating and cooling system with an energy efficient, ENERGY STAR qualified air source or ground source heat pump. More>>>
  • Electric Heat Incentives
    • In October 2008, President George W. Bush signed the Emergency Economic Stabilization Act of 2008, which extended tax credits for energy efficient home improvements. More>>>
  • Southern Seeks Scholarship Applicants
    • If you know a recent high school graduate, or a student who will graduate from high school in 2009, now is the time to start thinking about Southern Power District’s Utility Line Scholarship Program. More>>>
  • Recipe Box
    • Easy Ground Beef & Pasta Casserole Enjoy!>>>