The Nebraska State Legislature convened on February 26, 2025, to discuss Legislative Bill 91, a significant piece of legislation aimed at amending the provisions related to the conveyance of electric distribution systems by public power districts or public power and irrigation districts to cities or villages. The bill, introduced by Senators DeKay, Brandt, and Clouse, was approved by the Governor on February 25, 2025.

The primary purpose of LB 91 is to streamline the process by which public power districts can transfer ownership of electric distribution systems to local municipalities. Under the amended provisions of section 70-650.01, once a public power district has fully paid off its debts related to the construction or acquisition of its electric distribution system, it must convey its rights to the system at no cost if requested by the city or village. This request must be formalized through a resolution adopted by the governing body of the municipality, which then requires a 30-day notice period before becoming effective. If a referendum petition is filed within this timeframe, the resolution will be subject to a vote by the municipality's electors.

Key debates surrounding LB 91 focused on the implications of transferring public assets to local governments and the potential impact on public power districts' financial stability. Some legislators expressed concerns that the bill could lead to financial strain on public power districts if municipalities were to request transfers frequently. Others argued that the bill would enhance local control and improve service delivery to residents.

The economic implications of LB 91 are noteworthy, as it could facilitate the modernization of electric distribution systems in cities and villages, potentially leading to improved infrastructure and service reliability. Socially, the bill aims to empower local governments, allowing them to make decisions that directly affect their communities. Politically, the bill reflects a growing trend towards decentralization and local governance in Nebraska.

As LB 91 moves forward, its significance lies in its potential to reshape the relationship between public power districts and local municipalities. Experts suggest that if implemented effectively, the bill could lead to enhanced collaboration and efficiency in managing electric distribution systems, ultimately benefiting Nebraska residents. The next steps will involve monitoring how municipalities respond to the new provisions and whether any challenges arise in the implementation process.