Seward council approves 35-year wholesale power contract with Nebraska Public Power District

The Seward City Council voted 6-0 to approve a 35-year wholesale power purchase contract with the Nebraska Public Power District (NPPD), City Manager Greg said during the council’s administrative items.

City Manager Greg said the contract has been under review for about two years and that council members and staff met in closed session to discuss negotiations. “It’s a 35 year contract. Reminder, the predominant reason to have a contract is so that the contract extends for the life of the debt service for the new generation,” Greg said, describing the term as tied to NPPD’s debt financing for new generation capacity.

The administration recommended approval after reviewing contract parameters with a municipal consultant and coordinating with neighboring utilities. Greg said Seward staff met with representatives of other municipal customers and that Norris Public Power District’s board was expected to recommend approval at its next meeting. Carson, then the city’s NPPD customer representative, attended the meeting to answer questions.

Council members did not request additional changes during the meeting. No mover or seconder was recorded on the public transcript prior to the vote; the council roll call showed a unanimous tally in favor.

The contract’s stated term and the administration’s explanation that the length matches the debt life for new generation were the central facts presented to the council. The contract was described as the product of multi-year review and coordination among municipal wholesale customers and NPPD.

What's next: The council approved the contract and the item will be implemented under the city administration’s direction; no additional council conditions were recorded in the public discussion.