Cambridge, Nebraska--On April 13, 2007 Nebraska Public Power District’s Board of Directors approved a Production Cost Adjustment (PCA) that will be in affect from April 1, 2007 to March 31, 2008. This will increase the wholesale cost of power that Twin Valleys Public Power District pays by approximately 2.6%.
The ice storm that occurred on December 29, 2006 and the resulting damage to NPPD’s high voltage transmission lines in Central Nebraska is the reason for this one year adjustment. With these transmission lines out of service NPPD could not use the Gerald Gentleman power plant near Sutherland that produces the least expensive electricity, to supply power to a portion of the state of Nebraska. They had to increase the load at plants that use natural gas or diesel fuel, which is more costly to produce electricity. They also had to buy power on the open market at much higher costs.
As a result of this increase in wholesale power costs, Twin Valleys Public Power District Board of Directors voted on April 16, 2007 to pass this additional charge from NPPD along to our customers. This will be an increase of 1.2% in our rates, or $0.001072/ kWH. The increase will be first seen on your May billing. The PCA rate will have a very slight change in 2008.
“Twin Valleys Public Power District regrets having to pass this increase on to our customers” said Jim Dietz, General Manager. “After suffering approximately $7.1 million in damage form the two ice storms last December, Twin Valleys Public Power District is not in a financial condition where such as increase can be aborbed.”
