§ 70-655 — Reasonable rates required; negotiated rates authorized; conditions

Nebraska § 70-655

• Jurisdiction: Nebraska
• Ch. 70: Power Districts and Corporations

Text

(1) Except as otherwise provided
in this section, the board of directors of any district organized under or
subject to Chapter 70, article 6, shall have the power and be required to
fix, establish, and collect adequate rates, tolls, rents, and other charges
for electrical energy, water service, water storage, and for any and all other
commodities, including ethanol and hydrogen, services, or facilities sold,
furnished, or supplied by the district, which rates, tolls, rents, and charges
shall be fair, reasonable, nondiscriminatory, and so adjusted as in a fair
and equitable manner to confer upon and distribute among the users and consumers
of commodities and services furnished or sold by the district the benefits
of a successful and profitable operation and conduct of the business of the
district.
(2) The board of directors may negotiate, fix, establish, and collect
rates, tolls, rents, and other charges for users and consumers of electrical
energy and associated services or facilities different from those of other
users and consumers. Any negotiated rates, tolls, rents, and other charges
for a commercial or industrial customer shall be effective for no more than
five years and in no case shall such rates, tolls, rents, and charges include a production component that is less
than the incremental production cost
of supplying such services if (a) such customer has entered an agreement with
the state or any political subdivision to provide an economic development
project pursuant to state or local law and (b) such economic development project
has projected new or additional electrical load requirements greater than
five hundred kilowatts and a minimum annual load demand factor of sixty percent
during the applicable billing period. This subsection shall also apply to any
nonprofit corporation organized for the purpose of furnishing electric service
pursuant to the Electric Cooperative Corporation Act or the Nebraska Nonprofit
Corporation Act, any agency
created pursuant to the Municipal Cooperative Financing Act, and any municipality
engaged in furnishing electrical service to customers at retail or wholesale.
(3) In order to facilitate the merger and consolidation of districts,
the board of directors of a merged or consolidated district may negotiate,
fix, establish, and collect rates, tolls, rents, and other charges for consumers
in the service area of one or more of the predecessor districts which are
different than rates, tolls, rents, and other charges for consumers in the
remaining service area of the merged or consolidated district. Any different
rates, tolls, rents, and other charges pursuant to this subsection shall be
effective for no more than five years after the date of merger or consolidation
and shall be based on cost of service or other rate studies showing that adoption
of dissimilar rates for consumers in otherwise similar rate classes is needed
to effectuate the merger or consolidation. This subsection shall also apply
in the event of a merger or consolidation of any nonprofit corporation organized
for the purpose of furnishing electric service pursuant to the Electric Cooperative
Corporation Act or the Nebraska Nonprofit Corporation Act.

Legislative History

Source: Laws 1933, c. 86, § 13, p. 353; Laws 1937, c. 152, § 8, p. 589; Laws 1939, c. 89, § 1, p. 388; C.S.Supp.,1941, § 70-713; R.S.1943, § 70-655; Laws 1981, LB 181, § 26; Laws 1986, LB 1230, § 47; Laws 1995, LB 828, § 2; Laws 2001, LB 243, § 1; Laws 2005, LB 139, § 16; Laws 2012, LB1043, § 1. Cross References: Electric Cooperative Corporation Act, see section 70-701. Municipal Cooperative Financing Act, see section 18-2401. Nebraska Nonprofit Corporation Act, see section 21-1901. Annotations: A discount provided only to wholesale customers who renewed their contractual relationship with Nebraska Public Power District was not discriminatory under the circumstances. In re Application of Northeast Neb. Pub. Power Dist., 300 Neb. 237, 912 N.W.2d 884 (2018). Rent collected under this section would not necessarily have to be cash rent, but would only have to be reasonable consideration. Jeffrey Lake Dev. v. Central Neb. Pub. Power and Irr. Dist., 262 Neb. 515, 633 N.W.2d 102 (2001). A dissimilar rate may not be imposed for similar service solely on the basis that the additional source of the power or energy is more costly than previous sources. All of the sources must properly be blended into a rate which results in all customers obtaining the same service under the same conditions being charged the same rate. McGinley v. Wheat Belt P. P. Dist., 214 Neb. 178, 332 N.W.2d 915 (1983). Potentially conflicting interests within a class are incompatible with the maintenance of a true class action and this aspect may be disposed of upon motion for summary judgment. Blankenship v. Omaha P. P. Dist., 195 Neb. 170, 237 N.W.2d 86 (1976). It was intended to permit the business of a power district to be operated in a successful and profitable manner. City of O'Neill v. Consumers P. P. Dist., 179 Neb. 773, 140 N.W.2d 644 (1966). Board of directors is authorized to establish and collect adequate rates for electrical energy. York County Rural P. P. Dist. v. O'Connor, 172 Neb. 602, 111 N.W.2d 376 (1961). Powers conferred are intended to permit district to be operated in a successful and profitable manner. United Community Services v. Omaha Nat. Bank, 162 Neb. 786, 77 N.W.2d 576 (1956). Under assumed contract, district could not increase annual maintenance charge. Faught v. Platte Valley P. P. & I. Dist., 155 Neb. 141, 51 N.W.2d 253 (1952). District is not exempt from payment of charges under Federal Power Act. Central Neb. P. P. & I. Dist. v. Federal Power Commission, 160 F.2d 782 (8th Cir. 1947).