Declining Block Rates and Energy Management Credits Changes
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Update June 19, 2025
At their monthly meeting on June 19, the Omaha Public Power District Board of Directors approved the rate actions to clean up outdated pricing structures and credits as well as an update to the existing meter opt-out rate. For more information, read the press release here.
OPPD is proposing to remove two methods for calculating customer bills from OPPD’s Service Regulations & Schedules:
Declining Block Rates (DBRs)
Energy Management Credits (EMCs)
Both DBRs and EMCs are being eliminated/ending. DBRs are an outdated pricing structure that is inconsistent with the current market environment, and EMCs are a legacy credit that has not been updated in 20 years and does not have a cost-of-service basis.
This change is revenue neutral to OPPD; while some customers will see a bill decrease, some will see a bill increase. OPPD will not, in total, collect any additional revenue with this change.
The district’s rate consultant, The Brattle Group, recommended the proposed changes in April 2024. That recommendation, along with the management’s intention to seek full board approval in 2025, was shared with the Board of Directors Finance Committee in September 2024.
Public Comment Accepted
OPPD is accepting public comments on this rate action from May 13 - June 15. You may leave your feedback in the "Guestbook" below.
Update June 19, 2025
At their monthly meeting on June 19, the Omaha Public Power District Board of Directors approved the rate actions to clean up outdated pricing structures and credits as well as an update to the existing meter opt-out rate. For more information, read the press release here.
OPPD is proposing to remove two methods for calculating customer bills from OPPD’s Service Regulations & Schedules:
Declining Block Rates (DBRs)
Energy Management Credits (EMCs)
Both DBRs and EMCs are being eliminated/ending. DBRs are an outdated pricing structure that is inconsistent with the current market environment, and EMCs are a legacy credit that has not been updated in 20 years and does not have a cost-of-service basis.
This change is revenue neutral to OPPD; while some customers will see a bill decrease, some will see a bill increase. OPPD will not, in total, collect any additional revenue with this change.
The district’s rate consultant, The Brattle Group, recommended the proposed changes in April 2024. That recommendation, along with the management’s intention to seek full board approval in 2025, was shared with the Board of Directors Finance Committee in September 2024.
Public Comment Accepted
OPPD is accepting public comments on this rate action from May 13 - June 15. You may leave your feedback in the "Guestbook" below.
Please note, "Guestbook" is for comments only and they will be passed along to the Board of Directors. OPPD's Board of Directors is accepting comments on removing the DBRs and EMCs rate through June 15, 2025.
Please know, OPPD cannot respond to comments or questions left on this guestbook comments tool. Your opinion matters and all comments provided here in this tool are shared with OPPD leadership. Please leave your feedback here in our guestbook.
CLOSED: This discussion has concluded on 6/15.
This change should've been implemented with the earlier rate hikes. Separating these changes makes it look like OPPD was trying to hide the full impact.
This will have a significant impact on low-income households that use electric heat. It also seems like a bait and switch for the customers who made the switch to heat pumps at OPPD's urging.
While I understand the desire to correct the distorted price signal that declining block rates send to customers; this change should wait until time-varying rate plans can be implemented.
Brian1
20 days ago
After years of pushing people to move to all electric, now you are increasing rates on those who followed your advice by taking away the discounted rate for higher usage. This is wrong.
Nosmartmeters
21 days ago
I welcome the removal of the declining block rate structure. Folks who make efforts to improve their household efficiency and reduce their overall usage should not be forced by an outdated rate structure to subsidize the inefficiencies and wastefulness of those who don't. In short, those who use more electricity should be paying more, and if this is an issue they can seek to reduce their usage like everyone else if they would like to lower their bill.
This change should've been implemented with the earlier rate hikes. Separating these changes makes it look like OPPD was trying to hide the full impact.
This will have a significant impact on low-income households that use electric heat. It also seems like a bait and switch for the customers who made the switch to heat pumps at OPPD's urging.
While I understand the desire to correct the distorted price signal that declining block rates send to customers; this change should wait until time-varying rate plans can be implemented.
After years of pushing people to move to all electric, now you are increasing rates on those who followed your advice by taking away the discounted rate for higher usage. This is wrong.
I welcome the removal of the declining block rate structure. Folks who make efforts to improve their household efficiency and reduce their overall usage should not be forced by an outdated rate structure to subsidize the inefficiencies and wastefulness of those who don't. In short, those who use more electricity should be paying more, and if this is an issue they can seek to reduce their usage like everyone else if they would like to lower their bill.
Public comments will be seen here