Now
Fair
74°
High
88°
Low
55°
Full Forecast

Jobs

Cars

Homes

Rentals

Alerts

Subscribe
Home > News > Local
Bookmark Us   •   Make Us Your Homepage

Customers urge LES to invest in renewable energy projects

Comments 33 comment(s)  
E-mail Story E-mail Story
Print Story Print Story
Share  Share
Text Size: 
Tools Sponsor

BY ALGIS J. LAUKAITIS / Lincoln Journal Star

Tuesday, Aug 05, 2008 - 10:56:36 pm CDT



The Lincoln Electric System Administrative Board and staff got several suggestions Tuesday night on how to deal with a $9.2 million budget shortfall due mostly to rising fuel and power generation costs.

The suggestions included investing in more wind turbine and other renewable energy projects, and raising electric rates even higher to force people to conserve energy.

Story Photo

One of the more intriguing ideas came from Beatty Brasch, executive director of Center for People in Need. She proposed that if LES implements a 10.1 percent increase, then low-income families should be exempt from that increase.

“The Census Bureau says there are 4,584 Lincoln families living at or below 100 percent of the poverty level,” Brasch told the LES Administrative Board. “If we exempt these families from the rate increase estimated to be approximately $8.50 per month, per household, the dollar amount would be $467,568.”

LES management is proposing a systemwide 10.1 percent rate hike due mostly to a volatile natural gas market. If approved by the City Council, the rate increase would take effect Sept. 1.  The city-owned electric utility passed on a 5 percent rate increase to its customers in March.

Tuesday night’s hearing was the first of two public hearings on the proposed rate hike. The LES board plans to vote on the measure Friday and will pass on a recommendation to the City Council, which has scheduled a public hearing for Aug. 18.

Ken Winston, a Lincoln attorney appearing on behalf of the Nebraska Chapter of the Sierra Club, urged the LES board to invest in more “green” projects that utilize wind and solar resources.

“We’re saying let’s invest in renewable energy. That’s a way to guard against rate shocks,” Winston said.

Tim Hemsath, with the Flatwater Chapter of the U.S. Green Building Council, suggested that LES get involved in constructing more green buildings in Lincoln and offer financial incentives to those who install renewable energy devices on their homes and businesses.

Todd Hall, vice president of consumer services for LES,  said the utility has been involved in an Energy Star program, which promotes energy-efficient homes, for the past 10 years. He said the utility supports green-build incentives but does not currently have such a program.

Instead of a regular public hearing, LES management used a  new format Tuesday night to create a “dialogue” with those in attendance. John Baylor, a former radio personality, served as moderator during the meeting attended by about 50 people. The new format appeared to work with customers speaking and asking questions and LES board members and staff  giving responses.

Coby Mack, with the Lincoln Independent Business Association, said his organization neither supports nor opposes the proposed rate hike. However, he said LIBA is concerned that that utility has not worked hard enough to reduce its internal costs. Mack suggested that LES reduce its matching contribution to the employees’ retirement fund.

 To lessen the impact of the rate increase, LES has proposed cutting its internal costs by $1.1 million. It also plans to use $1.5 million from its Rate Stabilization Fund.

Joyce Perry, a ratepayer, praised the board for doing an excellent job in keeping its rates down and instituting the new meeting format. She also encouraged the utility to look into alternative fuels.

Bob Caldwell, who represents the Lincoln Employers Coalition made up of some of the city’s largest power users, said his organization is not taking a position of support or opposition at this time. But his group did ask LES to, among other things, provide a line-item summary report outlying the cost reductions and efficiency measures related to the proposed rate increase.

Stuart Long, another ratepayer who attends LES meeting frequently, told board members that residential customers pay more for their electricity and subsidize other ratepayer classes. He also suggested that the utility boost its Rate Stabilization Fund to at least $20 million.

Roxanne Smith, a former member of the Lower Platte South Natural Resources District, told the board that no one likes to see their rates go up. She and others blamed a failed federal energy policy which relies heavily on oil  and not renewables.

“I support the rate hike to cover rising natural gas prices. I don’t want to see blackouts in Lincoln,” Smith told the board. “I encourage  raising rates even more to reduce (energy) consumption.”

Smith said citizens will not conserve energy on their own without higher electric rates. She also encouraged LES to get involved in planting trees. She said trees planted on the west side of homes help reduce energy bills by providing shade.

“I approve of the rate increase. In the future I look forward to more,” Smith said.

Reach Algis J. Laukaitis at 402-473-7243 or alaukaitis@journalstar.com.


$1 Sunday Delivery - Subscribe Today!
Local > Back to Top of Story

Post Your Comment

Standards and Rules
All posts to JournalStar.com are subject to our Terms and Standards.
Your posted comment will appear after it has been approved.
Frequently asked questions about story commenting.
(optional)
   
Hide Comments Hide Comments   Newest First Newest First  
ARE PEOPLE INSANE wrote on August 5, 2008 11:56 pm:
" Am I the only person in Lincoln who can't afford any more rate increases? I am already sweating like a pig while watching tv in the dark...all the while looking forward to freezing this winter...all because I AM ALREADY CONSERVING and now my fellow citizens are ENCOURAGING and LOOKING FORWARD to more increases!!!!!!!! My God peoople what the heck are you thinking...and to top it off lets make half of Lincoln exempt????
So ummm yeah when do I qualify for the Lincoln Cares Program??? "

 Chris wrote on August 6, 2008 12:35 am:
" Excellent. LES should be leading us all to the wind and the sun. Props to all who spoke on renewables behalf. And I also agree, the only way to motivate people to conserve is to raise prices. LES, go for it! I've saved over 10 percent this last year just by turning things off. My friggin cable bill was much more. I turned the box in...

As for you greedy business folks, you would do well to maximize efficiency and invest in renewables as well. There is no future in fossil fuels. They're already fossils for crying out loud. No thanks to Heineman for doing NOTHING to help us get more solar and wind power...

Keep this in mind: in just one hour, enough sun hits the earth to power all of humankind for a year. And, the US has enough wind to power our needs five hundred times over. We have to meet the challenge of storage and transmission. It's like God shining down on us saying 'hellllo' I'm up here...

Oh yeah, and if you factor in the cost of war for natural resources, all bets are off. Read previous paragraph on solar and wind to provide additional national security. "

 Public Meet wrote on August 6, 2008 1:46 am:
" What a joke. Why bother? This is all a ruse by LES. It's to give the appearance that they are sincere and open to ideas. People c'mon,they have no intention to negotiate. They will beat a dead horse till they get their increase and do it again next year and the year after that and that year after that and ..well you get the point. "

 concerned wrote on August 6, 2008 5:17 am:
" i believe LES should run this company like any other right now. i work for a company who is down about 20 million dollars in annual sales and with rising costs we had no choice but to make unwanted cutbacks.
1. 40+ layoffs in the last 8 months
2. cleaning service cut down to 3 times a week
3. reduced expense account expenditures
4. virtually eliminated donations
5. reduced gross profit percentages
why is LES any different than the rest of us companies who are trying to make it through these tough times? (only to make them tougher?) "

 Gets old wrote on August 6, 2008 5:46 am:
" To Roxanne Smith - I trust you are paying more than your current electric bill now. I'm confident LES would accept any amount you would like to pay as long as you at least pay the "Amount Due." If you aren't already paying a lot more, why don't you and your cronies that want higher LES bills begin today writing much larger checks? If I was to bet, I'd bet you have never written a check to LES for more than what you owe. Why not? There is nothing stopping you, you don't have to look forward to higher rate increases in order to pay more now. Higher "taxes" and higher "rates" are never never never the answer to these types of problems. If they sound like and big spending lib, if they look like a big spending lib, they are a big spending lib. You can spot them miles away. "

 unbelievable wrote on August 6, 2008 6:18 am:
" Some of these people are out of their minds! Have you ever had an employer give you a 15% raise in one year just because your costs have gone up? Don't think so! They should be held accountable just like everyone else...have they reviewed internal costs and make reductions everywhere possible before they raise rates again? I'll bet they could make lots of internal reductions that wouldn't hit the consumer quite so hard. "

 WCG wrote on August 6, 2008 6:47 am:
" Hey, this is all OUR fault, after all. We elected politicians who ignored the writing on the wall after the last oil shock in the 1970's (just as we wanted them to). We didn't push for increased fuel mileage standards (just the reverse, we wanted gas-guzzling SUV's) or increased research into renewable energy. Worst of all, we were dumb enough to elect Bush/Cheney, the worst presidential administration in U.S. history, not just once, but TWICE! Look what they've done to us. Now, we've not only got an energy shock, but we're starting out bankrupt!

We brought this on ourselves. We knew it was coming, but we refused to look ahead. And many of us want to drill just a little more oil, to put the reckoning off just a little longer, when it will be even worse. Remember the story of the ant and the grasshopper? Well, we've become an entire nation of grasshoppers,... and it looks like winter is on its way. "

 Carl wrote on August 6, 2008 7:12 am:
" While I am not saying that LES should not invest in more forms of renewable energy, I am saying that renewable energy is not the answer to lower rates. Solar, wind, Bio-mass and all of the other types of "green" energy are still not to the point where they can provide a large enough percentage of LES's generation that anyone is even going to notice. The only "green" fuel that currently has any size to it is hydro power, unfortunately we just don't have enough water around here to build a large hydro plant. LES does however purchase 126 MW's of hydro power from WAPA in the summer, all of which comes from the huge hydro's in Canada. The only fuel that will provide electricity in any measurable amounts for the forseeable future is good old fossil fuels. And LES has aggressively been buying into new cleaner burning fossil fuel plants in both Council Bluffs, and Nebraska City. So even though the average LES customer does not see that LES is doing what it can to aquire stable, reliable, and cost effective generation, that is exactly what they are doing. "

 C wrote on August 6, 2008 7:39 am:
" "concerned" has the right idea. The rest of us are all having to lose benefits and have cuts, why not them. Their website states that they pay 3/4 of the benefits for employees and match signficantly in their retirment plan. Most employees are lucky to get half their benefits paid and get anything matched in their retirement accounts. Also, lets ahve an audit done comparing the salaries paid at LES to the rest of the city.

Last time I went into the LES building downtown it had to be 70 degrees and no shades on the windows to keep out the sun. Turn up the thermostat and install some shades. They sure are being energy efficient. (Sarcasim) "

 sean wrote on August 6, 2008 7:50 am:
" This year, my family and I have done with out AC, TV and lights. When its dark we go to bed the clock are all wind up. I cook on a wood grill. I have put in a wood stove that heats the hot water for winter. What more can We do? I guess I'll find out. "

 Kevin wrote on August 6, 2008 7:52 am:
" An average of $8.50 per month per household? That's $102/year. If you can't afford an extra $102/year, you had better have some sort of government assistance. There are a lot of folks that say that they can't "afford" this, yet their priorities get out of whack. Example; buying a few beers instead of saving that money for the electric bill. You'd be amazed at what you can pay for if you prioritize your expenditures. "

 Lisa wrote on August 6, 2008 8:08 am:
" I for one have other things I'd like to be buying with my paychecks, however I DO NOT BELIEVE PEOPLE SHOULD BE TAKEN OFF THE HOOK BECAUSE THEY HAVE BAD PAYING JOBS. There is no free lunch. You use something, you must pay for it. Period.

The only thing that scares me about LES pushing to conserve energy use, is when we do conserve they don't make enough in revenues (RE: Lincoln Water) then the prices go up even further.

If you use X units of energy you pay Y dollars. Simple. "

 thank you Carl wrote on August 6, 2008 8:11 am:
" I wish more people knew as much about what is going on as you do!! Wind power is just not the answer at this time and in this area. and people have no idea how much the windmills cost and all the cost of maintaining them... maybe in the future!!! "

 as wrote on August 6, 2008 8:35 am:
" Hate to be the one to break it to 'Kevin' but there are many out there to whom $102 per year is a LOT of $$. These are the people who are in between, those in the gap of qualifying for HHS help & not qualifying for a thing but barely making enough to survive. There are more of those out there than there are agencies to count them & normally those also are outside the guidelines for many agencies to intervene as well "

 umm... wrote on August 6, 2008 8:36 am:
" charge more to force conservation?!? sounds a lot like the rhetoric spun over water usage in lincoln over the last year or two. last year they wanted to charge more to force people to use less, then turn around this year and say rates need to be raised because people aren't using enough water. "

 How wrote on August 6, 2008 9:30 am:
" How can you possibly believe poor people deserve to pay less for their utility rates than a working middle class person?

When and where does the entitlement bus ride end?!!!! "

 Sorry wrote on August 6, 2008 10:10 am:
" Sorry to see LES has controlled by the interestes they buy from with no plan toward renewables. Boone Pickens can't be wrong. Shouldn't LES at least have a statement of direction to buy into his plan? Has LES or the mayor visited Boulder CO to bring back a plan of implementation of their successful project? Otherwise, it'll just be same-ol, same-ol over and over again. "

 net meter wrote on August 6, 2008 10:13 am:
" Here's a thought for the legislature ... With the projected budget surplus offer tax credit for individuals or businesses to install solar panels / wind mills. Then folks can net meter & sell back to LES or other utilities when they produce more than they need. "

 Scott wrote on August 6, 2008 10:16 am:
" This is such a farse by LES, when we have cool summers they complain because there's not enough revenue coming in and need a rate hike and then when it is hot like this summer they come up with more excuses to increase rate hikes, and when gas prices go down I don't see them saying hey gas prices are down now we're going to lower your rate. Obviously, they like to insult peoples intelligence and there's not one thing we'll be able to do about it. It will be interesting to see what kind of raises Bundy and other will get. "

 Busted wrote on August 6, 2008 10:54 am:
" I am so happy my meter is busted. It's been sitting still all summer. I run 3 air conditioners full blast 24-7. My last bill was about 20 bucks.
Sen. Chambers...there is a God. "

 Carl wrote on August 6, 2008 11:22 am:
" This is a great idea, the "rich" people can move in with the "poor" people and get free heat. Also, does a free tire gauge come with the trees??? If these suggestions weren't so pathetic it would be funny. The special interest groups are ruining this town/country. "

 Lincoln Cares wrote on August 6, 2008 11:28 am:
" "Are People Insane" asked "when do I qualify for the Lincoln Cares Program???" A good question. I believe the answer is that he or she qualifies when they become park land. Lincoln Cares provides money to serve Lincoln's park system. It does not have anthing to do with paying electric bills. I also enjoyed the comments from someone who cooks dinner with wood stoves to save money but obviously has a computer and Internet service. "

 BOB wrote on August 6, 2008 11:44 am:
" The "raise the price so people will use less" sounds like congress with tobacco taxes. Most people won't use less, they will pay the higher rate just like the "evil" smokers. "

 Priorities wrote on August 6, 2008 11:50 am:
" Those same people who are complaining about LES increasing their rates, are the same people who have the highest tier of cable stations and the newest cell phone with all the bells/whistles. Seems like their priorities are messed up! LES should go to pre-pay billing. Perhaps if people's electricity was shut off when their account showed a Zero balance, they'd learn to set their priorities differently! "

 THINK ABOUT IT wrote on August 6, 2008 2:11 pm:
" I for one am getting tired of hearing how renewables are the answer to rising rates. That idea was created by renewable energy promoters who are taking advantage of people's fears about rising costs, knowing full well that adding wind or solar generation will actually further contribute to skyrocketing rates. (Yes, wind is free but you have to invest in the turbines up front, along with adding to the transmission systems...not a cheap investment). They also fail to admit that on the days when we are using the most electricity--the days we are cranking up the AC, or farmers are irrigating their fields, those are the stifling dog days of summer, with high temperatures and often no wind. These unfortunately are the days when we need power generation the most. If you go solar, the investment to match what our power plants produce for us would be unreal. No matter what, we are still going to need coal/nuclear energy as consistent sources of generation on those days when wind turbines are standing still. So how then does adding renewables help to lower rates when we will need to maintain a constant base of coal & nuclear to assure the lights stay on?

I guess to those who are not concerned about raising rates, then yes you should further push for wind or solar generation because the sky's the limit. Those of you who do not have a bottomless wallet need to speak out and share your concerns as well. Electricity is not a luxury, its a necessity and it concerns me that it will become something that only the wealthiest can afford. Speak out to your elected officials and your utility company if this concerns you too. They need to hear from people on both sides of the issue, not just those with renewable interests. "

 ex-Husker wrote on August 6, 2008 3:05 pm:
" A few observations. As I've said before, compare Lincoln electric rates to those of cities and you will see the bargain you have. I have yet to see a news article about this in the LJS, unless I missed it somehow.

Renewable energy costs 200% (wind) to 300% (solar) more than conventional electricity. How is this going to save money? And what is the carbon footprint of a wind turbine? The same as a natural gas peaking plant. Unless you want the power to go out when the wind isn't blowing, you must back wind power up with a rapid response generating system: a large natural gas turbine. So when the wind is idle, the gas turbine can respond in a fraction of a second. Which of course doubles your plant cost. And they say wind is free...

Conservation and energy efficiency are always under the control of the user of electricity. It doesn't take utility money to make it happen. And it's a poor business plan for the utility to pay its consumers to use less of its product. So you the consumer are paying your neighbor for his new efficient air conditioner, etc.

Finally, subsidizing low income utility bills is also a failure. There is absolutely no incentive for low income folks to conserve when their usage is subsidized. Experience has proven that they use more energy when they aren't paying for it. Again, conservation is always under the control of the user.

You have a fine utility in Lincoln. And your rates are lower than any others that I am familiar with. "

 amazing wrote on August 6, 2008 5:37 pm:
" Wow. Lots of criticism. I'd hate to see what it would be like if our electrical rates were among the very lowest in the country.

Many thanks to the dedicated employees of LES for providing us electrical service day in and day out! "

 Carl wrote on August 7, 2008 10:02 am:
" Every utility including LES would love a cool summer. There is a lot more money to be made by selling your energy to the market. If LES has to run all of their generation at full load plus go to the market and purchase energy just to cover their native load, then there is no way they make money in the summer. People always seem to think that the power companies love the hot dog days of summer, but nothing could be further from the truth. A nice cool summer means that LES can send it's power South and get market prices for it, instead of what the Lincoln City Council says they can get for it from the rate payers of LES. It's a little known fact that the utilities in this state make all of their money in the spring and fall when it's cooler here, there is no irrigation load and yet it's still hot in other parts of the region. "

 Feeling the crunch wrote on August 7, 2008 11:10 am:
" I work on a daily basis with people who cannot afford to pay their utility bills. Area businesses who help low-income families pay for utility bills are overwhelmed as it is. With this rate hike, not only will it effect ALL low-income families, but it will have an effect of the businesses that help them, as well as the not-so-low-income people who are also struggling to make ends meet. This needs to be stopped. Run the business like a business and stop making the consumer pay for your mis-appropriations. "

 Million Dollar Man wrote on August 7, 2008 1:08 pm:
" I don't mind the rate hikes...I'm filthy rich! Bring on the rate hikes to lower consumption...I still will run my A/C 24 - 7. "

 icare wrote on August 8, 2008 3:15 am:
" My guess is that NOT ONE of the LES executives or Council members can comprehend what it is like to not have $.25 - what's can be purchased with a quarter? I couldn't believe people in Lincoln had no money in their pockets or in their future for weeks at a time until I volunteered at schools from elementary, middle/junior high, through high school. When the truly impoverished children come to school hungry or in t-shirts and sandals in the snow or have no pencil or paper or cannot go on a field trip because they must have $.50, the schools provide for that (or beg parent associations for donations - or teachers give from their pockets - to help) so that the general public can complain what it costs for schools. Who said schools must subsidize a child's hunger?

In Lincoln we have been lucky as there have not been tornadoes or other devastating weather to take out power in huge areas. We must consider that we are also lucky that the high temperatures and humidity have not caused deaths among the poor and unhealthy. Some health needs cannot be met because there is no way to provide air conditioning - nothing more than a fan to move the air.

The Center for People in Need is being realistic. At least those of us in the middle class have the good fortune to be able to make a decision about how much to cool our homes or run the outside water so the children can cool off under the hose or go to a movie matinee to stay cool. There are people in Lincoln who have no choice but to struggle to feed their children, keep them from becoming ill from the heat, and wonder how they can get employment to have a salary to keep the power on in their home so that one fan can move the air, their refrigerator will work to cool water and the little food available to them.

I can't really imagine even though I've seen those poor children. Can the decision makers imagine driving around Lincoln without AC in their cars, to arrive home to a house that's been gaining heat to the 95 degrees of the day, to have no food in the frig because the power was cut off and it all spoiled? May our Supreme Being grant LES and the Council caring thoughts for those who suffer most. "

 HuskerDemon wrote on August 8, 2008 8:22 am:
" Everyone on this list needs to go to http://appanet.files.cms-plus.com/PDFs/PPFactSheet.pdf and get educated on what public power really means.

LES is a public power utility. As such, it is legally required to charge only enough to cover operating costs and debt for capital improvements. It is not reponsible to any shareholders, does not give bonuses or discounts to employees, and can only pay its employees a reasonable market value for a salary.

LES has kept Lincoln's rates in the lowest 10% in the nation for years by only charging what it needs to cover costs. On the other hand, there are many other investor-owned power utilities in the nation who are increasing their rates by over 30% at a shot to cover costs and turn a profit so they can increase their quarterly earnings to meet a target share price.

Count yourselves lucky that you live in the only all-public power state in the the nation. Do some research before you complain...check out the info at http://www.eia.doe.gov/fuelelectric.html and realize that you don't have it as bad as you think. "

 Entertained wrote on August 8, 2008 9:24 am:
" What an entitlement generation. Your Grandparents would be embarrassed. Does the gas station owe you gas when your SUV runs empty? In fact, you prepay for the auto gas you use. I recently spoke with someone complaining about their electric bill. When I asked how much they paid for cable TV, the cable bill was twice the electric and she said that there was no way they could live without cable, and this is the common attitude. We are rapidly becomming a fat sloppy nation begging to get our buts kicked by the rest of the world. Where will your 350 pounds of entitlement be when that hits your doorstep? The increase is irrelevant, this city and this country need a major attitude change. Pay for what you use and quit blaming everyone else for who you see in the mirror. Improving your life begins with you. "

Ads by Yahoo!