Beatrice City Council has taken a significant step towards ensuring the long-term stability of its electric utility rates by approving a comprehensive rate design study presented by JK Energy during their meeting on September 15, 2025. The study, led by consultant John Kraske, aims to address the anticipated changes in power supply and costs as the city prepares for the expiration of existing contracts in 2030.

Kraske emphasized the importance of proactive planning, recommending a phased approach to rate increases to avoid a potential 40% spike in 2031. The proposed plan includes a 6% annual increase over the next two years, which is designed to gradually adjust rates and minimize the financial impact on residents. This strategy aims to maintain competitive rates while ensuring the utility can meet future demands and infrastructure needs.

The council discussed the necessity of building a new power plant, which Kraske indicated would likely be the most cost-effective solution compared to purchasing power on the open market. He highlighted the increasing costs associated with energy generation and the need for the city to secure its energy future amidst rising demand from large tech companies and changing market conditions.

In addition to the rate increases, the study recommends adjustments to the customer charge and seasonal rates to better reflect the cost of service. Kraske noted that the current customer charge of $12 per month is insufficient to cover the basic costs of providing service, leading to a subsidy from other customers. The proposed changes aim to create a fairer rate structure that aligns with actual service costs.

The council's decision to implement these recommendations reflects a commitment to fiscal responsibility and long-term planning, positioning Beatrice to navigate the evolving energy landscape effectively. As the city moves forward, residents can expect gradual adjustments to their electric rates, aimed at ensuring reliable service and financial stability for the community.