NPPD presents 2026 wholesale power contract, generation plan and options for municipal customers

Representatives from the Nebraska Public Power District outlined the proposed 2026 wholesale power contract and a related generation plan during the Seward City Council meeting. The presentation described a 35-year contract term, plans for roughly 1,411 megawatts of new generation including continued service from Cooper Nuclear Station, and contract features intended to balance long-term finance needs with customer flexibility.

Tony Dunner, vice president of customer service and external affairs for NPPD, and Courtney Carson (account manager) presented the process that produced the new contract language, saying it followed about two years of customer engagement. "Everything came back to those guiding principles," Dunner said, describing priorities of reliability, affordability and the ability to promote economic development while stabilizing costs for end-use customers.

Key elements presented include a 35-year term; an initial generation plan with Princeton Road Station (planned in-service 2029) and three additional combustion turbines slated for 2031'1033 if needed; a projected 835-megawatt extension and upgrades at Cooper Nuclear Station; and a total of about 1,411 megawatts of new resources NPPD plans to add. The contract also adds features customers requested: a "capping" option (allowing a utility to cap the amount of load served by NPPD after notice, earliest 12/31/2035 based on a three-year average), enhanced qualified local generation (QLG) flexibility, a customer committee to advise NPPD's board, and an exit mechanism that would require an exit fee tied to an individual customer's allocated share of production debt so remaining customers are not disadvantaged.

Dunner said the longer term helps align debt service for major generation investments and smooth rate impacts. The draft contract includes an arbitration process for billing disputes and a procedure to reopen negotiations for specific changes if the customer committee and NPPD agree to do so.

Council members asked detailed questions about cost risk, future demand growth, and leverage for municipalities under the long-term commitment. One councilmember expressed concern about binding future councils and the practical ability of a customer to leave the contract, noting market changes and large new load types (for example data centers) that can rapidly change demand. Dunner and Courtney explained the exit fee and capping provisions are intended to give customers flexibility while protecting other customers from cost shifts.

NPPD staff said there is an incentive for early signers: customers that sign before Oct. 31 would receive a reduction (described as a percentage offset to the production debt calculation) tied to whether NPPD's costs exceed a benchmark; NPPD described a potential 5% reduction for each year the benchmark is exceeded up to 20%. Staff said the board approved offering the 2026 contract in late July and that cities would receive red-line contract language for review.

No municipal vote on the contract occurred at the meeting; staff said the city and other wholesale customers will continue review and discussions and that the sign-by-Oct. 31 timeline is an NPPD incentive rather than a council-imposed deadline.