City of Norfolk approves new contract with NPPD

By Eric McKay

NORFOLK, Neb.— A much-discussed utility contract is getting the go-ahead from a northeast Nebraska city council.

The Norfolk City Council voted on Monday  to approve a new 20-year contract with Nebraska Public Power District.
The amended contract lowers the initial lease rate for utilities from 12.5% to the current rate of 12%.
The amendment was proposed by councilwoman Sue Beckmann. 

Beckmann had initially opposed the rate increase saying she wants to give the city more time to discuss whether or not rate increases are in the best interest for the city's budgeting plan going forward.

“An exchange plan is a long term plan, like four years out,” Beckmann said. “And it asks for citizens approval on a number of those steps and I think there’s a lot of people that have not yet had access to that document or that even know about it to be honest with you. So I would like to keep it at the 12% now with the option to move forward in the future. And that will give time for the plan possibly to go into effect. So for right now I would like to keep those rates just as they are.” 

The contract approved by the council allows the city to increase rates in half percent increments annually with a cap set at 14%.
The new contract runs through 2046.