Attorney General Mike Hilgers Initiates Legal Action Against OPPD for Proposed Changes

Today, Attorney General Mike Hilgers filed a lawsuit against Omaha Public Power District (OPPD) regarding its planned refueling and retirement of electric generation units at North Omaha Station. OPPD freely admits that the planned refueling and retirement is being pursued for reasons that directly conflict with the core mission of public power established by the Legislature. Public power providers are supposed to prioritize affordability of the electricity they produce and reliability of the electric grid they oversee. OPPD's proposal for North Omaha Station furthers neither. Instead, in a time of rapidly increasing demand for electricity, OPPD's proposal will threaten grid reliability and create conditions where OPPD ratepayers will likely be subjected to higher costs.   

"Public power providers should not achieve their self-imposed environmental goals by raising prices for Nebraska consumers," said Attorney General Hilgers. "The proposed changes at North Omaha Station do not align with the fundamental objectives outlined by the Legislature, undermining the promise of public power."

Currently, North Omaha Station houses five generation units, two of which still utilize coal, while the three others primarily run on natural gas. OPPD plans to retire the three natural gas units, reducing the station's total output by about 40%. And it plans to refuel the remaining two units from coal to natural gas. It is pursuing this plan even though, by its own calculations, maintaining the status quo at North Omaha Station will save OPPD more than $40 million over the next five years and nearly $440 million over the next fifteen; savings that could be used to stabilize rates or even be passed along to consumers. As OPPD's President and CEO has explained, the current plan is motivated "primarily by environmental considerations," even though North Omaha Station complies with all applicable state and federal environmental regulations.

Attorney General Hilgers emphasized that this lawsuit is not about dictating or micromanaging OPPD's operational strategies. Instead, it seeks to ensure that OPPD adheres to its well-established, legislatively mandated public power mission: delivering reliable and affordable electricity to Nebraskans. 

"We are calling on the Court to issue an injunction that halts OPPD's current plan to refuel and retire units at North Omaha Station because that plan is based on political objectives that deviate from its founding mission," Hilgers stated. 

The Attorney General's Office is committed to addressing this crucial issue in court, advocating for the rights of consumers, and upholding the standards set forth by Nebraska's public power statutes.