Gwen Kautz, Dawson Public Power District General Manager
By Gwen Kautz, Dawson PPD General Manager
gkautz (at) dawsonpower.com
308-324-2386
The question I get asked most often is whether or not Dawson PPD will have a rate increase. More often than not, I can’t give a black and white answer until our year is coming to a close. Did we have a mild or cold winter, mild or hot summer – that darned weather makes a big difference in our revenue. I’ve been the general manager since 2013. Under my tenure, our first rate increase was in 2016; just one percent which was assessed to energy only.
Still the question remains….will Dawson PPD need to increase rates for 2017? The answer to that is yes – regardless of the weather this time.
“Which states are most affordable to live in?” Movoto Real Estate Blog, December 2014. Methodology for ranking included 2010 U.S. Census and the 2008-2012 American Community Survey data of adjusted income, cost of food index, cost of utilities index, miscellaneous cost of living index, median home price and unemployment rate.
Our expenses have increased over the last four years, but we have not adjusted rates that counter those changes. One percent last year was just to keep our cash position in the place it needs to meet Dawson PPD’s financial parameters. At this point, our budget process will be closely scrutinized so the increase is as low as possible.
We don’t care for rate increases any more than you do – but our expenses change just like yours. What did you notice this year? Were groceries more expensive, but gas lower than the year before?
Looking at the chart, “Which states are most affordable to live in?” by Movoto Real Estate Blog, it costs twice as much overall to live in San Francisco or New York City as it does to live in Lincoln, Nebraska.
Nebraska’s retail electricity rates are in the lowest third of state rates and it is the only state in which all electricity providers are not-for-profit organizations.
According to the U.S. Energy Information Administration, Nebraska’s average cost per kilowatt hour has consistently been below our neighboring states. Dawson PPD’s average residential cost per kilowatt hour was below the state average in 2015 at 10.3 cents compared to the state’s average of 11 cents. States that rely on affordable, reliable coal power for electricity enjoy the lowest rates in the United States with Nebraska obtaining about three fifths of its electricity from coal.
It’s our goal to balance reliability with low cost. It’s not always easy, but our mission statement sums it all up.
We exist to safely provide reliable, low-cost power using effective technology to meet our customer’s needs.
September 2016