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. 

Gov. Pillen Applauds Lawsuit Aimed at Ending Coal Energy Generation at OPPD North Station
LINCOLN, NE – Governor Jim Pillen is applauding the important action announced today by Attorney General Mike Hilgers — a lawsuit that aims to stop the closure of coal energy generation at Omaha Public Power District’s (OPPD) North Omaha Station. Filing this lawsuit comes at a pivotal time for preserving and expanding energy production – not only in Nebraska, but across the United States.
 
“It’s foolish for any power district to turn away from the single most affordable means of energy production known to mankind,” said Gov. Pillen. “Nebraska is blessed to have readily available coal reserves in Wyoming and the railroad infrastructure to get it here.”
Gov. Pillen emphasized that energy security is key to national security.

“Foreign adversaries have sped up their own coal production, most notably China and Russia. It is unfathomable why we would take any action that would slow or stop our own expansion of coal-driven energy.”

Gov. Pillen has worked hard on multiple fronts to preserve, protect and expand coal infrastructure in the state, as a means of ensuring cost-efficient available energy to Nebraskans. He said the lawsuit filed on behalf of the state by AG Hilgers represents a tremendous step toward furthering those goals.

“Today’s coal production does not carry the same emission risks that it did in the past. The scrubbing technology that is used today is very efficient and very effective in removing pollutants. Science is on our side, allowing us to make coal energy into clean energy.”

Additional information about the lawsuit can be found at: https://ago.nebraska.gov/news/attorney-general-mike-hilgers-initiates-legal-action-against-oppd-proposed-changes