Exclusive: OPPD Perks and Discount Leave MUD in the Dust

By Joe Jordan on December 17, 2009
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Following an exclusive investigation into perks at Omaha’s Metropolitan Utilities District (MUD), Nebraska Watchdog has uncovered even more employee extras at the city’s other major utility, the Omaha Public Power District (OPPD).

The results of Nebraska Watchdog’s investigations come as both utilities are raising rates. On Thursday OPPD increased residential electric rates 4.9% for 2010. Earlier this month MUD upped next year’s residential water rates 2.3% and a natural gas rate hike could be approved Friday.

OPPD Service Area

OPPD Service Area

According to records obtained by Nebraska Watchdog, OPPD with its 2,400 employees is spending at least $960,000 on items that include $10,819 for basketball, bowling, and golf leagues, $37,956 for an employee picnic, $120,000 for “vendor and beverage services”, and $101,182 for service awards.

OPPD Fort Calhoun Nuclear Power Plant

OPPD Fort Calhoun Nuclear Power Plant

In addition full-time workers at OPPD are eligible for an employee discount on their OPPD electric bill. According to OPPD spokesman Jeff Hanson the discount, which is not provided to OPPD’s eight member Board of Directors, has been on the books since 1936 and survived a 1976 court fight. But Hanson says the electric company does not know how much money is involved. ”We do not track the value of the rate to employees,” Hanson told Nebraska Watchdog.

At MUD’s December 2nd, 2009 meeting where Nebraska Watchdog’s initial perk investigation took center stage, MUD President Tom Wurtz stated publicly that none of MUD’s 860 workers receive any discounts on gas or water.

Tom Wurtz, MUD President

Tom Wurtz, MUD President

At that same meeting the MUD board voted to eliminate $219,000 in annual fringe benefits uncovered by Nebraska Watchdog. They included $4,830 for sports leagues, $32,000 for coffee, the annual company picnic with its $32,445 price tag, and a $40,000 wellness program.

OPPD’s wellness program costs $185,000 and Hanson says it “makes financial sense”. According to Hanson some OPPD workers are alive today because the program includes health care screenings that have detected early signs of cancer.

Hanson also defends OPPD’s other perks arguing the Gallup organization has researched the issue of employee extras and concluded they build employee loyalty and result in happier, more productive, and safer workers. According to Hanson OPPD’s Worker Compensation costs have gone from $1.4 million in 2005 to about $800,000 this year.

Nebraska Watchdog uncovered three other perks at OPPD: the Children’s Holiday Party which costs $6,500, Retirees organizations which receive $6,500, and the single largest perk ”Tuition Assistance” which costs $457,300.

MUD kept both its less expensive $57,000 tuition program and its $6,215 dinner for employees who do volunteer work for the gas company. But MUD eliminated funding for its $2,500 Children’s Holiday Party.

According to Hanson the OPPD board has approved its 2010 budget which includes the $960,000 in fringe benefits.

Editor’s note: to see Nebraska Watchdog’s initial report on perks at MUD click here. To see Nebraska Watchdog’s report on rate increases at both MUD and OPPD click here.

Reported by Joe Jordan, joe@nebraskawatchdog.org

Posted under News, Omaha Government.
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7 Comments For This Post So Far

  1. Kay Neil
    12:23 pm on December 19th, 2009

    How interesting to compare OPPD and MUD with Gallup since the first two receive their funds from US! How stupid do they think we are?
    How interesting too that OPPD could utilize wind turbines scattered around this county and have CLEAN energy for FREE! And GOD knows there is alot of “hot air” within the utilities as they defend their extravagence! Have they heard there is a recession going on and taxpayers are being “tapped” for everybodys perks! What about our perks?

  2. Gary
    5:01 pm on December 23rd, 2009

    OPPD learned a lesson from Congress. When you are the only game in town and no one is allowed to compete with you, why not give yourself perks and raise rates on everyone? Without competition there is no place for consumers to turn to.
    Remember folks, you vote on the OPPD board members. Pay attention next election.

  3. Cole
    3:43 pm on December 30th, 2009

    @Kay Neil – Wind Turbines are not a “Free” energy source. If you do a bit of research you will find that by investing in Wind Energy the electric rates in Nebraska will only increase. The only way to make Wind Energy “cheaper” is for the Federal Government to tax other energy sources which Nebraskans are saving money with.

    If you want to save the enviroment, you can build Wind Turbines. If you want to save money you will avoid them. Since they make free energy, feel free to put one up in your backyard and then you won’t have an electric bill at all!

  4. Heidy Strahan
    2:26 am on April 6th, 2011

    Great post, I enjoyed reading it, thanks.

Trackbacks

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    [...] perks at the city’s two utilities. The Omaha Public Power District (OPPD) hands out over $960,000 in fringe benefits ranging from sports leagues to free food while MUD was spending over [...]

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