Power Board Favors City Of Neligh In Electricity Rights Dispute

The City of Neligh’s electrical case, which was heard by the Nebraska Supreme Court earlier this year, may have concluded, pending yet another appeal to the Supreme Court.

On Friday, the Nebraska Power Review Board ruled in favor of the City of Neligh on Friday and ordered payment of an additional $82,623.86 to Elkhorn Rural Public Power District.

The board stated in its ruling that the municipality had the right to acquire the retail service area rights previously served by ERRPD and annexed into Neligh by Ordinances 578 and 579.

Nebraska Power Review Board Chairman Frank Reida wrote that Neligh is not required to provide any compensation to ERPPD for loss of revenue of the Baker and Bomgaars customers that were annexed by Ordinance 578 because they are not “existing customers” of ERPPD under Nebraska Law.

However, the customers and distribution facilities in the territory annexed from the south (Ordinance 579) shall be transferred to Neligh after payment of $82,623.86 to ERPPD.

The board ruled that Neligh owed the agreed-upon sum of $490,445.90, plus the compensation for the effect of the annexation on substation 71-18, consisting of the loss of 26 percent of the substation’s load, which amounts to $82,623.86.

The City of Neligh has paid the $490,445.90, which means the only amount due at present is $82,623.86.
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Neligh has until Nov. 16, 2019, to make this payment or the right to acquire the existing customers and distribution facilities is waived. ERPPD has 30 days to appeal the order to the Nebraska Supreme Court.