If you live in or around Omaha it will soon cost more to turn on the lights and you may also have to pay more to turn on the heat.

OPPD Power Plant

The Omaha Public Power District (OPPD) Board of Directors voted unanimously Thursday to approve a 4.9% hike in residential electric rates for 2010.

On Friday board members of the Metropolitan Utilities District (MUD) are expected to vote on a proposed increase in the cost of natural gas.

The MUD vote follows an exclusive investigation by Nebraska Watchdog which uncovered dozens of MUD employee perks ranging from $4,000 for golf and basketball leagues to $32,000 worth of free coffee. The perks totaled over $265,000. The board eventually voted to eliminate at least $219,000 of the employee extras.  

The OPPD rate hike will cost the average residential customer an additional $51.84 a year. The annual average electric bill will jump from $988.32 to $1,040.16.

MUD Board members were initially told the utility would need to raise residential gas rates 3.3% in 2010. That would amount to an annual increase of $21.97, taking the typical yearly gas bill from $672.87 to $694.84. But several board members told MUD’s management team to take another look at the budget and give the board more financial options. Friday’s board meeting is scheduled to begin at 8:15 a.m.

Earlier this month the MUD board voted to increase residential water rates. They will jump 2.3% next year, making the average annual water bill $193.34.

If MUD approves the 3.3% gas hike residential customers of both MUD and OPPD will be paying $78.13 more for utilities next year, from $1,850.21 in 2009 to $1,928.34 in 2010.

Despite the increases both MUD and OPPD insist their rates are among the lowest in the country. The rate hikes come despite a recession that has been accompanied by layoffs and pay cuts throughout the area.

According to OPPD prior to today’s rate hike the utility had cut the 2010 budget by $23 million but still needed to increase revenue by $35 million in order to run a viable network.

Editor’s note: to read Nebraska Watchdog’s initial investigation on MUD perks click here.

Reported by Joe Jordan, joe@nebraskawatchdog.org