The Mitchell City Council has decided to end its long-standing service and maintenance contract with Nebraska Public Power District and go on its own with MEAN, the Municipal Energy Agency of Nebraska.
The council voted unanimously after considerable debate to activate the non-renewal clause of the contract and give NPPD a required 12-month notice of intent.
Under the NPPD contract, similar to Chadron’s, the utility pays Mitchell a percentage of revenue from local customers and picks up the cost of distribution and maintaining or upgrading lines and equipment. It also gives a lower electrical rate to city government.
Alliance and Gering are among the Nebraska communities that run their own electrical systems and receive their power through MEAN.
Sandra Hendren, Mitchell’s representative to the MEAN board, told the city council she felt the city is paying too much with NPPD and that MEAN has said it will help Mitchell make the transition away from NPPD.