Lincoln City Council on Nov. 3 heard an extensive presentation from Lincoln Electric System on its proposed 2026 budget and accompanying rate changes.

LES staff told the council the recommended budget authorization is $713,700,000, split between operating and capital needs, with an operating budget of about $328.8 million and a capital authorization of $384.9 million. The utility proposed a 3% rate increase across classes, including residential customers, to help cover higher net power costs and rising transmission expenses.

"The rate increase recommendation, which is 3%," the LES presenter said during the council meeting, adding that the package would support increased net power costs and transmission expenses tied in part to projects in the Southwest Power Pool and maintenance work at local plants. LES cited a projected rise in net power costs (from figures used in the 2025 budget to projected 2026 levels) and named the Terry Bundy Generating Station addition and a Rokeby maintenance project among major capital items.

Council members pressed LES on the projected transmission costs and what they mean for an average customer. Councilman Weber asked for clarity on a roughly $30 million estimated increase in transmission expenses over 2026'2029; LES staff said those are shared SPP projects that will be billed to footprint members over time and that the estimate reflects preliminary SPP plans.

Members of the public also weighed in. Ken Winston of the Nebraska Sierra Club said his organization supports LES's work but was neutral on the rate increase; he urged expanding the energy assistance and sustainable energy programs and warned the group would oppose future investment in fossil-fuel generation.

Procedurally, Council voted unanimously to defer action. A motion to postpone the LES annual budget (item 5b) to the Nov. 17, 2025 meeting carried on a 6'00 roll call; a separate motion to delay action on the LES rate schedules (item 5c) to Nov. 17 also passed 6'00.

What happens next: LES will return to council on Nov. 17 with the proposed budget and the detailed rate schedule changes for final action. The utility said it is pursuing outreach and will continue to provide supporting materials in advance of that meeting.