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Debate in Nebraska panel over narrow plan to allow private generation for very large industrial customers
Summary
LB1261 would permit privately funded generation to serve single industrial customers with projected loads above 1,000 MW under strict conditions (PRB approval, PPA with public power, customer pays upgrade costs) and a sunset; public power, the governor, and private developers backed the bill, while labor, environmental and municipal groups raised water, gas, tax and workforce concerns.
Senator Barry DeKay introduced LB1261 as a narrowly tailored measure to let very large industrial users (for example, hyperscaler data centers or large manufacturers) bring private generation to a site when projected new load exceeds 1,000 megawatts, subject to safeguards: Power Review Board approval, a long‑term power purchase agreement with the public power district, the industrial customer paying all upgrade and transmission costs, and a sunset provision (December 31, 2031).
Kenny Zoller of Governor Jim Pillen's policy office described the bill as a response to short‑term supply chain constraints for turbines and other equipment that can delay public power projects. "This bill relaxes Nebraska's eminent domain laws that surround public power generation with a very tightly crafted exemption," Zoller said, adding the measure was drafted with public power entities and includes multiple guardrails.
Executives from Lincoln Electric System, NPPD and OPPD testified in favor as a practical tool to meet unprecedented near‑term customer requests. John McClure, NPPD general counsel, described the collaboration among public power and private partners and said the bill "creates a statutory framework allowing limited access by private generation for single loads greater than 1,000 megawatts." The utilities emphasized contractual protections, board oversight and the sunset clause.
Opponents pressed concerns about local impacts. Labor representatives asked for prevailing‑wage and apprenticeship requirements for any privately built projects benefiting from eminent‑domain limitations. Environmental and municipal witnesses raised questions about water use (data centers and some thermal plants can be water intensive), natural gas demand and price impacts, and tax consequences — specifically the effect on in‑lieu payments municipalities receive from consumer‑owned utilities if large generation is privately owned.
Senators repeatedly pressed witnesses on timelines and on whether projects that ramp to 1,000 MW over many years would qualify. Supporters said the "projected" threshold would be finalized in contractual arrangements with public power, which would remain the retail provider and would negotiate the PPA terms. Several witnesses and public power executives stressed they would only accept the bill as written and warned against amendments that might broaden eligibility.
The committee closed the hearing after a long panel of proponents and opponents; no formal votes were taken. Sponsors said the limited scope and built‑in sunset were designed to protect public power while allowing Nebraska to compete for major economic opportunities that require very large, quickly deployed generation.
