(KLZA)-- A new Platte Institute study finds many public power districts in Nebraska are facing challenges to keep electricity rates from rising faster than in neighboring states.
The report looks at whether the model is still delivering the most affordable and reliable electricity to customers.
Jessica Herrman is the director of research. She says a variety of factors are pushing electricity prices up for public power districts, including abundant supplies of natural gas.
Moving forward, Herrmann says districts will have to deal with EPA mandates to cut carbon dioxide emissions from power plants, which will increase rates as well. The EPA's plan to cut power plant emissions will be devastating to Nebraska's public utilities. She says achieving the EPA's mandate to reduce carbon dioxide emissions will mean a major overhaul of Nebraska's utility system.
The report also finds Nebraska utilities are missing out on wind power subsidies from the fedearl government, when compared to neighboring states. Among the regional findings is that only Missouri received fewer subsidies for alternative energy generation.
Herrmann says the heavy reliance on coal means Nebraska will need to cut carbon dioxide emissions by 40-percent over the next 15-years under EPA mandates.
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