Current | LES Customer Newsletter Current - October 2016

Current 1040 O Street, P.O. Box 80869 Lincoln, NE 68501-0869 8 a.m.-5 p.m., Monday-Friday Lincoln Electric System LES proposes rate adjustment LES’ CUSTOMER NEWSLETTER OCTOBER 2016 Customer Service: 402.475.4211 24/7 Bill Pay: 866.462.8432 - Toll Free Power Outage: 888.365.2412 - Toll Free Nebraska811 (call before you dig): 811 - Toll Free decreased wholesale market revenues, driven by low natural gas prices. Power costs are typically the single largest driver of rates. LES recently refinanced approximately $120 million in revenue bonds which resulted in a net present value savings of about $19 million. This refunding, combined with internal cost management measures, helped to significantly lower the rate adjustment. LES also continues its restructuring of electric rates to properly allocate the fixed charges and variable energy charges associated with supplying power to customers. As part of this process, LES is proposing to segment the facilities charge for the residential rate class into three levels based on average monthly electric usage. This allocation provides a more equitable distribution of After two years with no rate adjustment, LES is proposing an increase to retail electric rates. Residential customers will see an average rate adjustment of 3.5 percent, while the system average adjustment will be 3 percent. LES’ rate philosophy is to equitably allocate costs to customers with the goal of maintaining rates for each class within 5 percent of the cost to serve the customer class. This means that while the system average rate adjustment is 3 percent, individual rate classes will see adjustments both above and below the average. Even with the proposed adjustment, LES electric rates are projected to remain among the lowest in the country. The rate adjustment primarily is due to increases in net power costs, which are related to RATE ADJUSTMENT BY CLASS 2015 2016 2014 Residential General Service Large Light & Power 2.9% 1.2% 4.4% 0 0 0 System average 2.9% 0 0 0 0 0 Prop. 2017 4-yr avg. 3.5% 0.7% 4.0% 1.6% 0.5% 2.1% 3.0% 1.5% LES’ budget & rates meeting Oct. 6 At its Oct. 21 meeting, the LES Administrative Board will take action on the proposed 2017 budget and rates. Board members will consider customer comments and questions presented at LES’ public meeting on Oct. 6 at 7 p.m. at LES’Walter A. Canney Service Center (27th & Fairfield). Following Board approval, the proposed budget will be considered by the Lincoln City Council. Unable to attend the public meeting? Information is available on fixed facility-rated costs between high- and low-use customers. LES residential customers using 1,000 kilowatt-hours pay $94, which is 29 percent less than a national study average of $132. LES industrial customers using 1,000 kilowatts and 400,000 kWh pay $29,969, which is 22 percent less than the national survey average of $38,537. For more information about these changes, contact LES at 402.475.4211 or finance@les. com. p: 402.475.4211 ·