LINCOLN — The Lincoln Electric System Administrative Board’s Finance Committee proposed a budget that includes a 3.3% systemwide increase to retail electric rates in 2025 during LES’ Administrative Board meeting today.
“LES has a long-standing dedication to providing safe, reliable and sustainable electric service to our customers,” said Emily Koenig, LES vice president of Financial Services & chief financial officer. “As our community’s sole electric provider, we are committed to maintaining a resilient electric system while keeping our rates stable, affordable and equitable. The budgeted rate increase is needed to meet these values.”
If the rate increase is adopted, an average LES residential customer using 1,000 kilowatt-hours per month will see an increase of approximately $3.50 on their monthly bill. Other rate classes would see increases varying from 2.1% to 10.0% based on the cost to serve each customer class.
Cost reductions have been included in the proposed budget, including decreases in non-critical capital projects and operating expenses. However, the electric utility industry is continuously evolving, and LES must be able to continue evolving with it. Factors like supply chain and other cost increases, regulatory and policy requirements, and changing energy market dynamics are creating new challenges and opportunities for the industry. As such, the proposed rate increase is necessary to ensure the ongoing financial health of our customer-owned utility.
The proposed budget totals $474.8 million, including the operating budget of $291.1 million and the capital budget of $183.7 million.
A public meeting on the proposed LES 2025 budget and rates will be held on Oct. 3, 6-7:30 p.m. at the Kevin Wailes Operations Center, 9445 Rokeby Road in Lincoln. Customers can view the meeting’s materials at LES.com/Budget. LES staff will also meet with customers and customer groups throughout October to provide information and receive feedback on the proposed budget and rates.
The LES Administrative Board is planning to take action on the budget at its Oct. 18 meeting. If approved, the proposed budget and rates will be considered by the Lincoln City Council at a public hearing in November. If approved, rate changes will become effective Jan. 1, 2025.
Payment assistance options can be found at LES.com/FinancialAssistance or by calling LES at 402.475.4211.