Understanding the 2017 rate increase
- General Service Rate
- A-SH General Service Electric Heat
- Small Power Rate
- Small Power with Space Heating Rate
- Net Metering Rider Rate
- Security and Street Lighting
Net metering applies to customers who generate electricity and follow the standards in Nebraska’s net metering laws. They purchase power from Dawson PPD at the appropriate rate. Excess power is sold to Dawson PPD at the net metering rider rate. Generation credits may offset energy charges, but do not offset the distribution charge.
On April 1, 2017, Dawson PPD changed the requirements for new area lighting services. Payment for the area light and installation costs are due before the light is installed. Call Dawson PPD for more information at 308-324-2386.
Starting with May electric statements, Dawson PPD customers will see an average three percent increase. The new rates went into effect with April usage.
“Our goal is to make sure we provide safe, reliable and affordable power,” said Dawson PPD General Manager Gwen Kautz. “We believe the scrutiny and changes we’ve put in place are sufficient to keep the impact to a minimum.”
Customers on the General Service Rate who use on average 1,000 kilowatt hours per billing period can expect to see their bills increase $3.80 during the summer months of June-September and increase $3.50 in the winter months of October-May. This estimate includes the distribution charge, which will increase one dollar to $28 per month. Implemented August 2015, the distribution charge covers the cost of equipment, facilities and labor needed to provide safe and reliable electric service. Sales tax and village imposed lease payments are not figured in this estimate. The General Service Rate is used for homes, farms, stock wells and general use electric customers who do not use electricity as their primary source of heating.
Customers on the A-SH General Service Electric Heat Rate who use on average 2,000 kilowatt hours per billing period can expect to see their bills increase $6.60 during the summer months and $5.40 in the winter months.
This estimate also includes the distribution charge, which will increase one dollar to $30 per month. Sales tax and village imposed lease payments are not figured in this estimate. The A-SH Rate is used for customers who have 10 kilowatts or more of permanently installed electric heating such as baseboard heaters, an electric furnace or an electric heat pump.
“At the December board meeting, Dawson PPD board members reviewed the 2017 budget including our cash reserves,” Kautz said. “The directors felt that they could not ask customers for a rate increase without asking staff for cuts to the 2017 budget.”
Approximately $1.5 million was cut from the original 2017 budget. Distribution system improvement projects were evaluated and prioritized, and some were rescheduled to a later date.
As a not-for-profit utility, Dawson PPD uses bonds to finance large-scale improvements to its distribution system and ensure safe and reliable service. Dawson PPD previously used its cash reserves to pay for these expenses, much like using funds from a savings account. By building the cash reserves back up, the District will qualify for better bond rates in the future.