Current | LES Customer Newsletter Current - October 2018

CURRENT LES' CUSTOMER NEWSLETTER X68173 1040 O Street, P.O. Box 80869 Lincoln, NE 68501 8 a.m.–5 p.m., Monday–Friday Customer Service: 402.475.4211 Power Outage: 888.365.2412 - Toll Free Nebraska811 (Call before you dig): 811 - Toll Free OCTOBER 2018 LES PROPOSES NO RATE INCREASE FOR 2019 While restructuring continues, rates aren’t going up for the second year in a row. Lincoln Electric System staff and its board’s Budget & Rates Committee recommended no increase to retail electric rates in its 2019 budget and rates proposal during the LES Administrative Board meeting Sept. 21. The proposed 2019 budget totals $348 million, allotting $272 million for operating costs and dedicating the remaining $76 million for capital projects. This is $14.5 million less in capital projects and $1.4 million less in operating costs than 2018. With no system-wide average rate adjustment, demand-metered customers won’t see changes to their monthly bills. The only changes Residential, General Service and Heating Service customers will notice comes in the form of ongoing, revenue-neutral rate restructuring. In 2019, customers will have a decrease in energy rates (identified as the Energy Charge on account statements) offset by an increase in the Facilities Charge, which collects fixed costs for LES to maintain and deliver energy. Most customers will notice little to no change to their bill. 0% RATE INCREASE 4% 2019 budget by the numbers LOWER THAN 2018 BUDGET “We are happy, for the second year in a row, to not need an increase in electric rates,” said Vice President and CFO Laura Kapustka. “Instead, we’re focusing on restructuring rates to better account for the fixed costs of getting electricity to homes and businesses while keeping LES among the nation’s leaders in reliable service.” Electric rates in Lincoln rank among the most affordable in the nation. LES surveyed the rates of 100 electric utilities in different cities across the country in its 2018 National Electric Rate Study and determined that LES’ average rates are the eighth lowest. LOWER CAPITAL Residential customers using 1,000 PROJECTS BUDGET kilowatt-hours per month pay an average of $96.42 on their monthly LES bill, which is 31 percent less than the study average of $139.98. Meanwhile, industrial customers using 1,000 kW and 400,000 kWh pay $31,080 on their RESERVED FOR 2019 monthly LES bill, which is 23 percent less than the study SUSTAINABLE average of $40,614. 16% $1.5M ENERGY PROGRAM Learn more about the proposed budget at