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Why are Cornhusker's Rates so Low?
Reduce Line Loss - “Over the last 10 years
employees have worked hard at lowering line loss,”
said Cornhusker Power General Manager Ron Hostetter.
Line loss is the term used when energy escapes from
the conductor for various reasons. Employees have done
a good job in keeping branches cleared away from power
lines. Efficient transformers have been purchased. Conductor
sizes have been analyzed for efficiency. We are buying
the most efficient size to carry the proper load to
customers to reduce line losses.”
Reduce Wholesale Power Costs - “We have
worked hard to lower wholesale power costs several ways.
Cornhusker uses many methods of eliminating peak demand.
Electricity above the peak costs us more. In 1986, Cornhusker
added a six-day irrigation load control rate. When irrigators
allow us to control their pumps during those six days,
they receive a lower rate. In 1992, we added the Peak
Energy Partner Program. In this voluntary residential
program, customers have the opportunity to receive a
credit on their electric bill when they allow Cornhusker
to control their electric water heater during peak electric
usage times. In 1995, residential air conditioning load
control was added.”
Promote Electric Heat - “Throughout this
time, we have encouraged the growth of electric heat.
This fills in the valleys of electric usage.”
Encourage New Loads - “We have seen new loads come on our
system in recent years. Some of the big new industrial customers are FLEXcon
and Carnico. Several hog confinements have come on-line. These loads are
stable. They balance out the system. All of these practices and programs,
coupled with good load patterns with our customers, have allowed us to
purchase wholesale power at a low cost!” he said.
Public Power - Nebraska is the only state in
the USA that is 100% public power. No investor owned
utililities make a profit on the revenue. For more information
visit: http://www.nepower.org.
| Electric Utility
Comparisons |
| Type |
Average # Customers/Mile of
Line |
Average Income/Mile of Line |
Average Residential Cents/kWh |
Average Overall Cents/kWh |
|
| Investor Owned Utilities |
35.1 |
$62,665 |
9.2 |
7.9 |
| Municipal Systems |
46.6 |
$86,302 |
8.2 |
7.2 |
| Rural Electric Systems |
7.0 |
$10,565 |
8.3 |
7.4 |
| Cornhusker Power, 2002 |
2.54 |
$5,046 |
6.47 |
5.85 |
| Cornhusker Power, 2003 |
2.57 |
$5,217 |
6.74 |
6.09 |
| Cornhusker Power, 2004 |
2.6 |
$5,507 |
6.74 |
6.15 |
| |
|
|
|
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Source: EIA/DOE
NRECA Strategic Analysis, March 2003
CFC Trend Analysis |
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