Nebraska Power Review Board Rules In Favor Of Neligh

The City of Neligh was granted the right to serve its newly annexed area with power, according to an order signed Friday by the Nebraska Power Review Board. The City will pay roughly $390,000 less than what Elkhorn Rural Public Power District had requested.

The retail service area rights will be transferred from ERPPD to the City of Neligh upon payment of $490,445.90 by the City to ERPPD. ERPPD had requested $881,059.38 in compensation, according to the order. 

The $490,445.90 payment is for the infrastructure that Neligh was required to purchase in the annexed area, such as poles, wiring and transformers.

If the City fails to make payment by March 24, 2018, its right to acquire the existing customers and distribution facilities is waived, according to the order written by Board Chairman Frank Reida.

The $490,445.90 payment broken down is $265,073.33 for loss of net revenue for customers in the south annexation, $149,079.57 for the facilities in the south annexation and $76,293.00 for the costs to integrate the facilities to provide service to the Hemenway customer as a result of the south annexation transfer. 

ERPPD also requested the City of Neligh pay $337,567 in compensation to relocate substation 71-18 and $53,046.48 for lost revenue for customers Bomgaars and Baker. Earlier, ERPPD said it would cost $935,000 to relocate the 19-year-old substation but requested less since it "could be viewed as betterment costs" and lowered the amount to $337,567, according to the order.

The Power Review Board ruled in favor of the City and will not require payment of $337,567 to relocate the substation. The order stated, "Relocating the substation is not necessary in order to reintegrate it into Protestant's distribution grid system."

Also in dispute was service to the Baker and Bomgaars customers located in the annexed territory that was already being served by the City of Neligh. Because no transfer of service will take place, the Power Review Board also ruled in favor of the City and denied the request of $48,750 for the loss of revenue for Bomgaars and $4,296.48 for the Baker residence. 

"The City is not required to provide any compensation to the Elkhorn Rural Public Power District for the loss of revenue for these two customers as a result of annexation 578, as the customers are not 'existing customers' of Elkhorn Rural Public Power District under Nebraska law and the District has no revenue from sales of electricity to those customers," according to the order.