Nebraska

Legislation Passed
Electric N Gas N

Electric
Overview:

• There are no plans to introduce electric utility deregulation in Nebraska. Nebraska is somewhat unique in that it is the only state served entirely by public power.
• 1996: The Nebraska legislature commissioned a three-year study to review the state's electric system and determine whether retail competition would be beneficial for ratepayers.
• 1997-1999: The Phase I Study examined the background and current status of the electric industry in the state. The Phase II Study examined the developments in retail and wholesale competition in the electric industry in the United States, and evaluated the possible effects those developments might have on Nebraska's electric industry.
• Overall, the report found that Nebraska has little incentive to institute retail competition due to the low electricity rates enjoyed by ratepayers, and that competition may cause an increase in electric rates for small electricity users such as homeowners, rural residents, and small businesses. It recommends the state take a "condition certain" approach to deregulation: The state would consider implementing retail competition only if and when certain conditions are met that indicate Nebraska would benefit from electric retail competition.

Natural Gas
Overview

• Nebraska has one customer choice pilot program, offered by KN Energy, which serves about one-quarter of the state's residential and commercial customers. Nearly all the communities in KN Energy's service territory have voted to participate in the choice program.
• Nebraska has a somewhat unique situation in which individual communities and municipalities, rather than a statewide regulatory body, regulate retail natural gas service. In setting up its Nebraska Choice Gas Program, KN Energy reached an agreement with each municipality. The company agreed to fund formation of a Municipal Oversight Committee, which would recommend any changes needed in the program and serve as a mediator in any disputes.

• As of December 2001, all of the 73,669 residential customers eligible for choice under KN Energy's pilot program were enrolled with competitive suppliers. Forty-eight percent of these customers are enrolled with KN Gas Services, KN Energy's supplier affiliate.

Utility Regulatory Commission
Nebraska Power Review Board
402-471-2301
www.psc.state.ne.us