Nebraska Electricity Rates: What to Know

Nebraska is the only state in the country where you cannot buy electricity from an investor-owned utility. Not because it is banned — because it does not exist. Every single electron delivered to a Nebraska home, farm, or business flows through a public power district, a rural electric cooperative, or a municipal utility. No shareholders, no quarterly earnings calls, no profit margin baked into your rate. The state completed its transition to 100% public ownership between 1933 and 1946, and it has stayed that way for nearly a century.

That unique structure is the reason Nebraska consistently ranks among the five cheapest electricity states in the nation. As of 2025, the average residential rate in Nebraska was about 11.98 cents per kilowatt-hour, roughly 28% below the national average. The typical monthly bill lands between $112 and $117 — compared to $147-$156 nationally. But the era of ultra-cheap Nebraska power is showing signs of strain. In 2026, every major provider raised rates: Omaha Public Power District by 6.3%, Nebraska Public Power District by 3%, Lincoln Electric System by 3%, and Southern Public Power District for the first time in more than a decade. OPPD has warned customers to expect 5-9% annual increases through the end of the decade. Understanding why — and what you can do about it — matters more than ever.

Nebraska: The Only 100% Public Power State

If you live in Nebraska, you do not have a choice of electricity provider — and that is actually a feature, not a bug. The state has no investor-owned utilities (IOUs) at all. Instead, electricity is supplied by a mix of customer-owned, not-for-profit entities organized in three categories:

Provider Type	How Many in Nebraska	Examples
Public Power Districts (PPDs)	30	NPPD, OPPD, Dawson PPD, Southern PPD, Norris PPD
Electric Cooperatives	10	NVEMC, Perennial Power, Wheat Belt PPD
Municipal Utilities	121	Lincoln Electric System, many small-town utilities

In total, Nebraska has 161 publicly-owned electric service providers delivering power to roughly 1.8 million residents. Every one of them is governed by an elected board or an elected city council — not a group of investors in New York or Omaha.

That governance structure has two practical effects on your bill. First, there is no profit margin. Investor-owned utilities typically build a 9-10% return on equity into their rates to reward shareholders. Nebraska utilities do not. Every dollar collected goes back into operations, debt service, and reserves. Second, decisions about rates, coal plants, renewable energy, and reliability are made at public board meetings you can attend — and by board members you can vote out. That democratic accountability is a real lever when things go wrong.

The state regulatory body is the Nebraska Power Review Board (NPRB), created in 1963. Unlike a typical public utility commission in other states, the NPRB does not set retail rates. It approves service area agreements between utilities, authorizes new generation and high-voltage transmission construction, and oversees long-range power supply planning. Retail rates are set by each utility's own elected board. The board consists of five members appointed by the governor and confirmed by the legislature, including at least one engineer, one attorney, and three laypersons.

The bottom line: as a residential customer in Nebraska, your main levers for controlling costs are managing your usage, staying informed about your utility's board decisions, and taking advantage of efficiency and assistance programs. You cannot shop your provider — but you do own a piece of it.

What Nebraskans Actually Pay

Let's put real numbers on the table. As of 2025, the average residential electricity rate in Nebraska is approximately 11.98 cents per kWh, compared to a national average of 16.73 cents per kWh. Nebraska ranks as the third-cheapest state in the country for electricity according to EIA data. The average monthly residential bill is roughly $112-$117, well below the $147-$156 national average.

Historically, Nebraska's rates have been extraordinarily stable. NPPD's board has a formal goal of keeping rates in the lowest 25% of utilities nationally, and the most recent rankings put NPPD at the 12.5 percentile — meaning only one in eight utilities in the country charges less.

But 2026 is a year of broad-based increases. Every major provider raised residential rates effective January 1:

Utility	2026 Rate Increase	Typical Impact (1,000 kWh/mo)
OPPD (Omaha Public Power District)	6.3% overall, 6% residential	~$7/month on a $115 bill
NPPD (Nebraska Public Power District)	3% retail	~$5/month
LES (Lincoln Electric System)	3% systemwide	~$3.22/month
SPPD (Southern Public Power District)	First increase in 10+ years	Varies

OPPD has been the most direct about what comes next: its own board materials project 5-9% annual increases through the end of the decade. If that plays out, an OPPD residential customer paying $115 per month in early 2026 could be paying $155-$180 per month by 2030. That is still below the current national average, but the gap is closing fast.

If your bill has been creeping up and you cannot tell which line item is to blame, our guide on how to read your electric bill and spot overcharges walks through every component.

Nebraska's Major Public Power Providers

Three providers dominate the state by customer count and generation capacity. A fourth category — the dense patchwork of rural public power districts, cooperatives, and small municipals — serves the rest.

Nebraska Public Power District (NPPD)

NPPD is the largest electric utility in Nebraska and the backbone of the statewide power supply. Headquartered in Columbus, it serves all or parts of 84 of Nebraska's 93 counties, delivering electricity to an estimated 530,000 Nebraskans directly or through wholesale partnerships with 24 rural public power districts, cooperatives, and more than 100 municipalities.

NPPD is a generation, transmission, and distribution utility all rolled into one. It owns Nebraska's largest power plant (Gerald Gentleman Station, more on that later), a nuclear plant (Cooper Nuclear Station), and a significant share of the state's transmission backbone. It also has direct retail customers across much of rural Nebraska.

NPPD's 11-member Board of Directors is popularly elected from within its chartered territory. Each member serves a six-year term. That means if you are an NPPD retail customer, you can vote for the people who set your rates.

For 2026, NPPD's board approved a 3% retail rate increase and a 1% wholesale increase, effective January 1, 2026. For a typical residential customer using 1,000 kWh per month, that translates to just over $5 more per month. The board also authorized a Production Cost Adjustment (PCA) credit of approximately $30.8 million to wholesale customers — the eighth consecutive year wholesale partners have received a PCA credit.

Omaha Public Power District (OPPD)

OPPD is Nebraska's largest retail electric utility by customer count. It serves 13 counties in eastern Nebraska, covering the Omaha metro area and surrounding communities. Its 8-member Board of Directors is elected to six-year terms, and the board approves the annual corporate operating plan, budget, and rates at public meetings.

OPPD has been the most aggressive in adjusting to rising costs. For 2026, the board approved a $2.98 billion Corporate Operating Plan with a 6.3% average rate adjustment across all classes. Residential customers will see approximately 6% — about $7 more on a typical $115 bill. Commercial customers face a 3.7% average increase; industrial customers, 8.9%. The increase consists of a 5.8% general rate adjustment plus a 0.5% increase in the Fuel and Purchased Power Adjustment (FPPA).

Even this sizeable increase is smaller than what OPPD initially anticipated. The utility reduced internal costs by nearly $60 million in 2025 — implementing a hiring freeze for non-critical positions and deferring or canceling projects — which the utility says kept the rate increase about 4 percentage points lower than it otherwise would have been. Looking ahead, OPPD is telegraphing that 5-9% annual rate increases should be expected through 2030.

OPPD's 2026 residential rate structure consists of:

• Service charge: $30.00/month
• Summer energy (Jun-Sep): 11.937 ¢/kWh standard; 10.189 ¢/kWh with heat pump
• Non-summer energy (Oct-May): 9.503 ¢/kWh standard; 8.738 ¢/kWh with heat pump
• FPPA charge: 0.521 ¢/kWh on all kWh

Notably, OPPD eliminated its declining block rate structure as of October 1, 2025. Under the old structure, customers who used more electricity saw a lower per-kWh rate on their upper usage — a legacy design from a different era. The new structure is simpler and sends a clearer conservation signal.

Lincoln Electric System (LES)

LES is the municipal utility serving Lincoln and parts of Lancaster County. Unlike NPPD and OPPD, which have directly elected boards, LES is overseen by the Lincoln City Council — which approves budgets, rates, and major decisions. That makes rate votes part of the broader city budget process.

For 2026, the Lincoln City Council unanimously approved a 3% systemwide rate increase on November 18, 2025, effective January 1, 2026. For a typical residential customer using 1,000 kWh per month, that is about $3.22 more per month. Other customer classes saw adjustments between 0.8% and 10% depending on the cost of serving each class.

LES originally considered a rate increase of more than 4% but used internal budget reductions to bring the final number down. The 2026 budget totals $713.7 million — $328.8 million operating and $384.9 million capital. LES cites rising wholesale power costs and transmission expenses — factors that are largely beyond its direct control — as the main drivers.

Rural PPDs, Cooperatives, and Small Municipals

Beyond the big three, Nebraska's electricity system includes dozens of smaller providers. The Nebraska Rural Electric Association counts 35 member systems — 26 public power districts and 9 cooperatives. On top of that, 121 municipal utilities serve smaller towns and cities across the state.

These smaller providers often buy wholesale power from NPPD or from wholesale markets and distribute it locally. Their rates vary considerably. Southern Public Power District, which serves portions of south-central Nebraska, announced a rate increase in November 2025 — its first in more than a decade, a reflection of how long Nebraska rates have been stable. Dawson Public Power District, Norris PPD, Wheat Belt PPD, and NVEMC (Nebraska Valley Electric Membership Cooperative) are among the other notable regional providers.

If you are not on NPPD, OPPD, or LES, your utility's website will have its own rate schedule and board meeting information. Because these are public power entities, all of that information is by law open to customers.

How Public Power Actually Works

Most Americans have no direct say in who runs their electric utility. A handful of executives at an investor-owned utility make the decisions, a state public utility commission approves or rejects rate requests, and consumers are left to write checks. Nebraska is different, and the difference shows up in three concrete ways.

Elected Boards, Not Appointed Commissions

In Nebraska, the people who decide your rates answer directly to voters. NPPD has an 11-member board elected from subdivisions across its service territory for six-year terms. OPPD has an 8-member elected board. Rural public power districts and cooperatives have similar structures. LES decisions are made by the Lincoln City Council, elected by Lincoln voters.

That means if customers are unhappy with a rate increase, a coal plant delay, or a renewable energy plan, they can show up at a public meeting, speak during public comment, and — ultimately — vote the decision-makers out. This happened in a limited way during the 2025 debate over OPPD's North Omaha Station, where public pressure and board turnover influenced the eventual decision to delay coal retirement rather than proceed on the original schedule.

No Shareholder Profit Margin

In most states, an investor-owned utility's rate includes a "return on equity" — typically 9-10% — that goes to shareholders. That margin is baked into the rate base and paid by every customer on every bill. Over time, it compounds. Public power utilities do not have shareholders. Their rates are designed to cover operating costs, debt service, and reasonable reserves. Any surplus gets reinvested in the system or, occasionally, credited back to customers.

One way to see this in action: NPPD's Production Cost Adjustment credits to wholesale customers, which have returned hundreds of millions of dollars to partner utilities over the past eight years. An investor-owned utility would not refund excess revenue to customers — it would distribute it to shareholders.

Transparency by Default

Because public power utilities are creatures of state law, their meetings, budgets, rate studies, and long-term plans are public documents. You can read OPPD's 2026 Corporate Operating Plan, watch NPPD board meetings, and access LES rate schedules without filing a records request. Every rate increase is debated publicly before it takes effect.

The practical value: informed customers can participate in the process. If you want to understand why your rate is going up, the reasoning is available. If you disagree, the decision-makers are accessible.

Why Nebraska Rates Are Rising

For decades, Nebraska electricity rates climbed slowly or not at all. That changed in 2026, when every major provider announced increases at the same time. Four forces are driving this shift.

Data Center Demand

The biggest new pressure on Nebraska's power system is data center load. Google alone has invested more than $4.7 billion in Nebraska since opening its Papillion data center in 2019. It now operates facilities in Papillion, Omaha, and Lincoln, and has proposed a fourth facility that could require more power than the entire city of Lincoln uses at peak demand in summer. Meta also has a significant presence in Papillion. The Washington Post reported in late 2024 that Google and Meta's Omaha-area data centers were effectively "keeping coal alive" because the load growth outpaced the speed at which utilities could bring new clean generation online.

OPPD is now in the middle of what it describes as a massive effort to double its generation capacity by the end of the decade. Every megawatt of new capacity — whether wind, natural gas, or transmission upgrades — gets funded through the rate base.

Coal Plant Decisions

Nebraska still burns a lot of coal. Two of the biggest coal plants in the state are at the center of ongoing rate and reliability debates:

• Gerald Gentleman Station (NPPD): Located near Sutherland, this 1,365 MW facility is Nebraska's largest power plant. Unit 1 came online in 1979 (665 MW); Unit 2 in 1982 (700 MW). Coal arrives from Wyoming's Powder River Basin by rail. NPPD has not announced a retirement date for Gerald Gentleman, and the plant continues to operate.
• North Omaha Station (OPPD): OPPD originally planned to retire the remaining coal units and convert the plant to natural gas by the end of 2026. In December 2025, the OPPD board voted 6-2 to delay the coal retirement to at least fall 2028, citing rapid demand growth, new winter reserve requirements from the Southwest Power Pool, inflationary pressures on infrastructure, and reliability concerns. Nebraska Attorney General Mike Hilgers had filed a lawsuit in October 2025 challenging the plan, then withdrew the suit after the board's delay vote.
• Nebraska City Station (OPPD): A coal plant with Unit 1 (1979) and Unit 2 (2009) providing approximately 1,337 MW of capacity. No firm retirement timeline has been announced.

Every delay to coal retirement and every new natural gas or renewable addition has rate implications. Capital spending on generation, transmission, and reliability upgrades flows through the rate base. So does fuel cost volatility.

Net Zero Ambitions Meeting Reality

OPPD committed to net-zero carbon emissions by 2050 in 2019, when electricity demand was relatively flat. Since then, data center growth, electrification, and new reliability standards have complicated that pledge. The utility is now working to double capacity while simultaneously decarbonizing — two goals that can be hard to reconcile without either higher costs or slower timelines. The 2025 decision to delay North Omaha coal retirement was a clear signal that reliability and affordability concerns can override the original decarbonization schedule.

NPPD has not set as aggressive a net-zero target as OPPD, and LES is pursuing its own clean energy roadmap. Across the state, the debate is similar: how quickly can public power districts transition without passing unmanageable costs to ratepayers?

Rising Wholesale Power and Transmission Costs

Even utilities that generate much of their own electricity buy some power on wholesale markets and pay for regional transmission. LES specifically cited rising power and transmission costs as the main drivers of its 2026 rate increase. Regional transmission organization costs, market-based power prices, and the general inflation in utility equipment and materials all feed into rates.

Understanding Nebraska's Rate Structures

Nebraska utilities have traditionally used some of the simplest residential rate structures in the country. That is starting to change.

OPPD: Seasonal with Heat Pump Credit

OPPD's 2026 residential rate is primarily seasonal. Summer rates (June through September) are higher than non-summer rates (October through May), which reflects the higher cost of supplying electricity during peak air conditioning season. Customers with heat pumps get a discounted per-kWh rate year-round, designed to support home electrification. The structure is simple: a flat monthly service charge plus a per-kWh rate that depends on the season and whether you have a heat pump.

Importantly, OPPD eliminated declining block rates as of October 1, 2025. Under the old structure, customers paid a lower rate on their highest-usage blocks — effectively rewarding higher consumption. Eliminating that structure sends a clearer conservation signal: every additional kWh you use costs the same, so efficiency upgrades pay back consistently.

LES: Flat Residential Energy Charge

LES uses a relatively flat residential rate structure: a customer charge plus a fairly consistent energy charge. There is no complex tiering or sharp seasonal differentiation for residential customers, which makes bills predictable but means the savings from conservation are also straightforward.

NPPD Retail and Wholesale Partners

NPPD's retail rates for direct customers vary by service area and class. Its wholesale rates to partner public power districts and cooperatives are separate from retail. If your local provider buys power from NPPD, your bill reflects both the wholesale cost and your utility's distribution costs.

Time-of-Use and Special Rates

Most Nebraska residential customers do not have access to a standard time-of-use (TOU) rate plan with peak and off-peak pricing. OPPD offers some optional and specialty rate schedules, and customers who install certain technologies (heat pumps, electric water heaters) may qualify for specific rate riders. If you are a heavy user — especially if you have an EV — check with your utility about any optional rates that could save you money on overnight charging.

What's on Your Bill

A typical Nebraska residential electric bill includes:

• Energy charge — the largest component, calculated from kWh used times the per-kWh rate
• Service charge / customer charge — fixed monthly connection fee (OPPD: $30/month)
• Fuel and Purchased Power Adjustment (FPPA) — a variable charge that passes through fuel cost changes
• Taxes and franchise fees — municipal taxes vary by location

There is no equivalent to Oregon's "public purpose charge" or similar ratepayer-funded efficiency program in Nebraska. Efficiency programs are smaller, and consumer protection programs like LIHEAP are federally funded rather than utility-funded.

Solar Energy in Nebraska

Nebraska is a surprisingly strong solar resource — sunnier than many people realize. But the market is small, and the state's solar policies are more modest than what you see in places like Oregon, California, or Colorado.

Market Status

Nebraska had approximately 203 MW of installed solar at the end of 2024, ranking 44th nationally. Wind dominates Nebraska's renewable generation — wind alone accounted for nearly 89% of the state's renewable electricity in 2024. Solar is growing but remains a small slice of the pie.

Net Metering — LB 436

Nebraska's statewide net metering law is LB 436, signed by Governor Dave Heineman in May 2009. It made Nebraska the 43rd state with a net metering policy, codified in state statute § 70-2005. The key provisions:

• 25 kW system size cap — The total installed renewable generation at a single site must be 25 kW or less. This is plenty for any residential system (typical homes run 6-12 kW).
• Retail rate credit — Customer-generators are credited at the applicable retail rate for each kWh they export, up to their total consumption during the billing period.
• Annual true-up at avoided cost — Any excess generation remaining at annual true-up is compensated at the utility's avoided-cost rate, which is typically much lower than the retail rate. This means oversizing your system to "bank" credits for profit does not work.
• 1% utility cap — Utilities are not required to keep offering net metering once the total customer-generator capacity reaches 1% of their monthly peak demand capacity.

LB 436 applies to every electricity provider in Nebraska: public power districts, cooperatives, and municipal utilities. The structure is reasonable for residential customers, but the 25 kW cap and avoided-cost true-up are meaningful constraints for larger homes and farms.

Incentives and Financing

Nebraska does not offer a statewide personal income tax credit for residential solar. There is no Nebraska version of the Energy Trust of Oregon or a state solar rebate program. What the state does offer:

• Dollar and Energy Saving Loans (DESL): Administered by the Nebraska Department of Environment & Energy, this program offers low-interest loans at 5%, 3.5%, or less for energy efficiency and renewable energy improvements. Terms run up to 15 years, with loan amounts up to $125,000 for single- or two-family homes. There is no income requirement — any Nebraska resident can apply. The program has been running since 1990.
• Solar for All: Nebraska was awarded $62 million through the federal Solar for All program to expand equitable access to solar power, with a focus on low-income households and both rooftop and multifamily installations. Rollout is ongoing through local partners.
• Federal tax credit (expired): The 30% federal solar investment tax credit for residential systems expired on December 31, 2025 under the "One Big Beautiful Bill" signed in July 2025. Homeowners who installed solar before that deadline can still claim the credit on their 2025 taxes; those starting now do not qualify.

Is Solar Worth It in Nebraska?

The math is trickier than in high-rate states. With residential rates around 12 cents per kWh, the annual savings from solar are smaller in dollar terms than for a California or Massachusetts homeowner paying 25-35 cents per kWh. But rates are rising, the DESL program offers cheap financing, and Nebraska's sun resource is actually quite good. If you are interested, get multiple quotes and model your specific usage. Our guide on choosing the best solar panels for your home covers the selection and installation process. For those who cannot install rooftop panels, a few Nebraska utilities are piloting community solar programs worth watching.

Strategies to Lower Your Nebraska Electricity Bill

With rates climbing and projected to keep rising, every efficiency improvement gets more valuable over time. Here are the highest-impact strategies for Nebraska residential customers.

1. Weatherize Your Home

Nebraska has brutal winters and hot humid summers. Both extremes drive heavy heating and cooling costs, which dominate most residential bills. Insulation, air sealing, and weatherstripping are the highest-return investments for most homeowners. The Nebraska Weatherization Assistance Program provides these upgrades at no cost to qualifying low-income households (discussed in the next section), and any homeowner can use the Dollar and Energy Saving Loans program to finance improvements at a below-market interest rate. Our guide on how to cut your electric bill in half covers the highest-impact efficiency upgrades.

2. Use Your Utility's Efficiency Programs

Each Nebraska public power provider offers some efficiency programs. OPPD runs the 3% OPPD Dollar & Energy Saving Loans program for qualifying customers and provides rebates for high-efficiency heat pumps, smart thermostats, and certain appliances. NPPD and LES offer similar programs. The specifics change year to year, so check your utility's website for current offerings before you buy equipment.

3. Consider a Heat Pump

OPPD's rate structure explicitly rewards heat pump customers with a discounted per-kWh rate — about 1.75 cents/kWh lower in summer and 0.77 cents/kWh lower in winter compared to standard residential service. Over a year, that discount can add up to hundreds of dollars for a home with significant heating and cooling load. Heat pumps are also dramatically more efficient than older electric resistance heating and can replace aging gas furnaces without a major increase in electric bills. Our guide on the best heat pumps for home covers the selection process, and our whole-home electrification guide walks through the broader transition.

4. Install a Smart Thermostat

A well-programmed smart thermostat can cut heating and cooling costs by 10-15% with almost no lifestyle change. Some Nebraska utilities offer modest rebates for qualifying models. Even without a rebate, the payback is usually under two years for homeowners with significant HVAC load. See our roundup of the best smart thermostats for energy savings for current recommendations.

5. Monitor Your Usage

You cannot manage what you do not measure. A home energy monitor plugs into your electrical panel and shows where every kWh is going — often revealing a surprise or two. A basement freezer running inefficiently, a forgotten well pump, or HVAC cycling far more than it should can add $10-30 per month in phantom costs that show up nowhere on your bill. Once you find the problem, you can fix it.

6. Attend Your Utility's Board Meetings

This is the single most underused tool in Nebraska. Your rates are set in public, by people who answer to public pressure. If you want to influence future rate decisions — or just understand what is driving your bill — attending board meetings and public comment periods is the most direct path. OPPD, NPPD, and LES all publish meeting schedules and rate proposals in advance.

7. Explore Solar (If the Math Works)

With rates climbing and the Dollar and Energy Saving Loans program offering cheap financing, rooftop solar is worth a look for homeowners with suitable roofs and significant usage. The 30% federal tax credit expired at the end of 2025, so new systems do not get that benefit — but the state net metering law still provides retail-rate credits for production up to your consumption, and the math can still work for the right household.

Low-Income Assistance Programs

Nebraska has several programs to help households struggling with energy costs, though the total funding is more modest than in states like Oregon or California.

LIHEAP (Low Income Home Energy Assistance Program)

LIHEAP is a federal program administered in Nebraska by the Nebraska Department of Health and Human Services (DHHS). It provides direct payment assistance for heating and cooling costs.

Eligibility is set at 150% of the federal poverty level. For the October 2025 through September 2026 program year, the gross income limits are:

Household Size	Annual Income Limit
1 person	$23,475
2 people	$31,725
3 people	$39,975
4 people	$48,225
5 people	$56,475
6 people	$64,725
7 people	$72,975
8 people	$81,225

Each additional household member adds $8,250 to the limit.

Benefits include:

• Heating assistance: $154 minimum, $1,050 maximum (payments made once per heating season, Oct 1 - Mar 31)
• Cooling assistance: $273 minimum, $700 maximum
• Crisis assistance: up to $500 for emergency situations
• Furnace repair or replacement: up to $750 for eligible households

Funding crisis alert: As of late 2025 and into early 2026, Nebraska DHHS had not received its full FY 2026 LIHEAP allocation from the federal government, causing processing delays. If you are facing a shut-off notice, call (800) 383-4278 immediately. Do not wait for funding to normalize before seeking help.

Nebraska Weatherization Assistance Program

Administered by the Nebraska Energy Office (within the Department of Environment & Energy), this program provides free weatherization services to income-qualified households. Eligibility is set at 200% of the federal poverty level — a higher ceiling than LIHEAP — and households receiving Aid to Dependent Children or Supplemental Security Income are automatically eligible. Priority goes to seniors 60 and older, persons with disabilities, and families with children under 6.

Typical improvements include attic, wall, and floor insulation, air sealing, weatherstripping, and safety inspections of heating equipment. The program does not cover roof replacement, siding, or replacement windows. Typical savings run about 25% on heating energy, and the benefits last 10-15 years. Between July 2023 and June 2024, the program weatherized 481 Nebraska homes.

Services are delivered through eight nonprofit community action agencies across the state. Contact the Nebraska Energy Office or your local community action agency to apply.

Dollar and Energy Saving Loans (DESL)

This program is open to any Nebraska resident or business regardless of income — a rare feature among state energy loan programs. DESL offers low-interest financing for energy efficiency and renewable energy improvements at rates of 5%, 3.5%, or less. Terms run up to 15 years for home improvements, with loan amounts up to $125,000 for single- and two-family homes. The program has been running since 1990, originally seeded with federal oil overcharge funds.

Qualifying projects include insulation, HVAC upgrades, heat pumps, water heaters, windows, and solar installations. OPPD customers have access to a specific 3% DESL variant with even lower rates.

Solar for All

Nebraska received $62 million in federal Solar for All funding to expand solar access for low-income households, including both rooftop and multifamily installations. Rollout is ongoing through state agencies and community partners. Details vary by county and income bracket; check with the Nebraska Department of Environment & Energy for current availability.

Utility-Specific Programs

Individual public power providers often run their own assistance and bill payment programs. OPPD, for example, has a dedicated energy assistance team that helps customers apply for LIHEAP and navigate payment plans. If you are struggling to pay, contact your utility directly — staff can often set up payment arrangements that avoid shut-off.

Frequently Asked Questions

What is the average electricity rate in Nebraska?

As of 2025, the average residential electricity rate in Nebraska is approximately 11.98 cents per kWh, about 28% below the national average of 16.73 cents per kWh. Nebraska consistently ranks among the five cheapest states in the nation for electricity, thanks in large part to its 100% public power structure and low-cost generation mix. In 2026, every major utility raised rates — OPPD by 6.3%, NPPD by 3%, and LES by 3% — so the typical rate will trend slightly higher through the year.

Why is Nebraska the only 100% public power state?

Nebraska transitioned to full public ownership of electricity between 1933 and 1946, during a wave of New Deal-era public power expansion. Voters in Nebraska chose to fund the buildout of rural electrification through public power districts rather than allow investor-owned utilities to dominate. The state has kept that structure ever since, and no investor-owned utility has returned. Today, all electricity in Nebraska comes from public power districts, rural electric cooperatives, or municipal utilities — 161 providers in total.

Can I choose my electricity provider in Nebraska?

No. Nebraska does not have retail electricity choice. Each provider has an exclusive service territory certified by the Nebraska Power Review Board. However, because every provider is public, you have a different kind of choice: you can vote for the board members who set your rates, attend public meetings, and engage directly with the decision-making process. That is not a feature available to customers of investor-owned utilities in most other states.

Why are Nebraska electricity rates going up now?

Four main factors: rapid data center demand growth (Google, Meta, and others have invested billions in Nebraska data centers), delayed coal retirements that push higher ongoing capital costs, rising wholesale power and transmission costs, and general inflation in utility materials and labor. OPPD has been the most direct, projecting 5-9% annual rate increases through the end of the decade. The era of ultra-stable Nebraska rates is ending, though the state still starts from one of the lowest baselines in the country.

How does Nebraska's net metering work?

Nebraska's net metering law is LB 436, signed in 2009. It caps eligible systems at 25 kW (enough for any residential home), credits exported energy at the full retail rate up to your total consumption during the billing period, and compensates any remaining excess at annual true-up at the utility's avoided-cost rate (much lower than retail). The law applies to all public power providers statewide. Utilities are not required to add new net metering customers once total customer-generator capacity reaches 1% of peak demand capacity.

Is solar worth it in Nebraska?

Solar is viable in Nebraska — the state gets more sun than most people realize — but the economics are tighter than in high-rate states. With residential rates around 12 cents per kWh, the dollar savings per kWh generated are smaller than in California or Massachusetts. The 30% federal tax credit for residential solar expired December 31, 2025, which also affects the math for new systems. However, the Dollar and Energy Saving Loans program offers cheap financing (5% or less), state net metering credits excess generation at retail rate, and rising utility rates improve the payback over time. For homeowners with good roofs and significant electricity usage, it can still work — just run the numbers carefully.

What happens if I cannot pay my electricity bill in Nebraska?

First, contact your utility directly. Public power utilities in Nebraska are generally willing to set up payment plans and connect you to assistance programs. Second, apply for LIHEAP through Nebraska DHHS (call (800) 383-4278 for shut-off emergencies). Third, check your eligibility for the Weatherization Assistance Program, which can permanently lower your bills through free home improvements. If you are below 200% of the federal poverty level, you likely qualify. Act early — the sooner you reach out, the more options are available.

What is the Nebraska Power Review Board and how does it affect my rates?

The Nebraska Power Review Board (NPRB) is a state agency created in 1963 to oversee Nebraska's publicly-owned electricity system. Unlike a typical public utility commission in other states, the NPRB does not set retail rates. It approves service territory agreements between utilities, authorizes new generation and high-voltage transmission construction, and oversees long-range power planning. Retail rates in Nebraska are set by each utility's own elected board, not by the NPRB.

Your Nebraska Electricity Action Plan

Here is a concrete plan to take control of your electricity costs.

This week:

1. Pull up your most recent utility bill and identify your current rate schedule, the service charge, the per-kWh energy rate, and any FPPA or fuel adjustment line items. If anything looks unfamiliar, our bill reading guide explains every line.
2. Log into your utility's online portal (oppd.com, nppd.com, les.com, or your local provider) and review your usage history for the past 12 months. Note your summer highs and winter lows.
3. If you are an OPPD customer and have a heat pump or are considering one, verify you are on the correct rate schedule to get the heat pump credit.

This month:

4. Check your eligibility for LIHEAP and the Weatherization Assistance Program. LIHEAP is at 150% of the federal poverty level; Weatherization goes up to 200%. Even if you think you might not qualify, apply — the limits are higher than many people assume.
5. Look into the Dollar and Energy Saving Loans program through the Nebraska Department of Environment & Energy. There is no income requirement, and the 5% (or lower) interest rate is meaningfully below typical home improvement financing. Use it to finance insulation, a heat pump, a water heater, or solar.
6. Walk through your home with a home energy monitor or a simple plug-in meter. Identify the three biggest electricity users in your home and ask whether they could be replaced with more efficient models.
7. Check your utility's current rebate programs for heat pumps, smart thermostats, and appliances. Rebates change year to year and are often stackable with the DESL loan.

If you are struggling to pay your bill:

8. Call your utility immediately. Public power utilities are generally willing to set up payment plans before a shut-off notice.
9. Apply for LIHEAP at the Nebraska DHHS energy assistance line: (800) 383-4278.
10. Contact your local community action agency about weatherization — the free home improvements can permanently reduce your bills.

For the long term:

11. Budget for continued rate increases. OPPD has projected 5-9% annual increases through the end of the decade, and other providers are likely to follow similar trajectories. Plan efficiency investments now while the payback is still strong.
12. Attend your utility's board meetings — or at least review the agendas and rate proposals. Board decisions affect your bill for years, and public input is a real lever. Under Nebraska law, all meetings and most documents are public.
13. Consider whole-home electrification. Nebraska's rate structures (especially OPPD's heat pump discount) are tilting toward rewarding electric heating and cooling. If you are replacing a gas furnace or water heater, a heat pump may be cheaper to operate over time.

Nebraska's public power system has delivered decades of stable, low-cost electricity through a unique democratic structure that most Americans will never experience. That advantage is real, and it is still valuable — the typical Nebraska household pays roughly $35-$40 less per month than the national average. But the era of ultra-stable rates is ending. Data center growth, coal plant decisions, and rising wholesale costs are pushing every major provider into a new cycle of annual increases. The Nebraskans who will pay the least over the next decade are the ones who use the tools available now: weatherization, efficient equipment, low-interest financing, and active engagement with their elected utility boards.