Electric rates set to rise in Valentine

VALENTINE, Neb. — Electric rates in Valentine are going up starting in January. The city council approved the increase Thursday night after Valentine’s wholesale power provider increased its rates.

Earlier this year, the council reviewed bids for a new wholesale contract. The lowest bid came from the city’s current provider, Heartland Energy. John Krajewski of JK Energy Consulting told council members the contract remains competitive, but the increase will still be significant because Valentine had previously been operating under an unusually low-cost agreement.

Krajewski advised the council that they would need either one large rate increase in 2027 or two smaller increases in 2026 and 2027. On Thursday, the council opted for the smaller, phased-in approach with a 3.78% increase this year.

The approved rate plan includes:

 

“We haven’t raised electric rates in nine years,” City Council President Kyle Arganbright said. “I would challenge anyone to find a utility service that hasn’t been raised in that long.”

Across the nation, electricity prices have skyrocketed. According to NPR, an increased demand in recent years has caused a 40% hike since February 2020. The report says that the increased demand is partly because of new artificial intelligence data centers, along with a rise in natural gas prices.