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Council advances utility rate changes and affirms emergency spending after power-plant outage
Summary
Council approved first readings of electric, sewer and water rate ordinances, held a natural-gas reading, and affirmed an emergency declaration to restore a power-plant unit after a transformer fault; electric increases would be 9.5% for two years (first reading 7–0).
FREMONT, Neb. — Fremont city officials on June 30 advanced a package of utility rate measures and affirmed an emergency spending authorization after an unexpected fault knocked a power-plant generating unit offline.
Utilities General Manager Jeff Shanahan told council that Unit 8 tripped on June 20 after crews completed a boiler-tube cleaning and discovered a fault in the power potential transformer. Staff said they were testing the generator, exciter and relay systems and searching for a replacement transformer; compatible replacements have long lead times, and staff requested affirmation of an emergency declaration so they could authorize work and equipment acquisition that may exceed normal spending limits. Council affirmed the emergency declaration 7–0.
Separately, staff presented a multi-year rate strategy based on a recent rate study. For electricity, the recommendation is a 9.5% rate increase for each of the next two years (with a lower ongoing escalation after that) to cover rising operating costs, inflation and planned generation/transmission investments; council approved first reading of the electric rate ordinance 7–0.
For natural gas, staff said there is no base-rate increase recommended for 2026–27 because most costs are passed through via transportation/commodity adjustments; council held first reading while staff corrects a clerical mismatch in tariff language. The sewer proposal would raise rates about 8% in each of 2026 and 2027 to fund capital work including a multi-mile pipe and manhole project; water rates would increase about 6.5% for each year to fund projects that include the planned horizontal well (projected at roughly $15 million) and continued lead-line work. Council approved first readings of the sewer and water ordinances 7–0.
Council members stressed the need for advance planning because the city’s newest generating unit dates to 1978 and aging assets and supply-chain pressures are increasing costs for reliability investments. Several council members urged moving early on needed upgrades rather than delaying cost decisions that can raise rates more sharply later.
Why it matters: Rate changes will affect all utility customers; the emergency decision seeks to restore generation capacity and limit reliability impacts. Council’s action signals a multi-year shift to fund capital projects and to maintain system reliability.
What’s next: Staff will continue testing, pursue temporary or permanent transformer solutions, finalize ordinance language for gas rates, and bring final readings of the rate ordinances to council.
