BEATRICE – The City of Beatrice is extending a new wholesale electric power contract with AEP Energy of Ohio, through the year 2030. The original agreement was to extend through 2023.
City Administrator Tobias Tempelmeyer says the switch by the city from Nebraska Public Power District to AEP, is expected to save money at the wholesale level, and for retail electric customers in the city.
:24 “this contract”
The Beatrice Board of Public Works had recommended approval of the contract extension.
:30 “25, 26 percent”
If the savings is 12%, the wholesale cost savings would be about $1.3 million annually. The city remains a wholesale customer of NPPD through 2018 and phases out the contract, completely breaking ties with the district in 2022.
One city councilman, Ted Fairbanks, cast a no vote on the extension, even though he supported switching wholesale suppliers.
:20 “voting against it”
Fairbanks describes energy use as “a huge moving target”, with so many more options available today…which helps reduce the cost. The city council approved the AEP contract extension, on a 7-1 vote.
Tempelmeyer says the city still must settle electric capacity issues. It is purchasing capacity in the meantime, through Lincoln Electric System.
Working with Bluestem Energy Solutions, a natural gas-fired electric generating station is proposed for the Gage County Industrial Park. That proposal is yet to go before the Nebraska Power Review Board for action.