Coming in 2027 and 2028, the Platte River Power Authority (PRPA) is projecting a 7.3% wholesale electricity rate increase. They were predicting a cost increase of 6.3%, but due to new unforeseen expenditures, that estimate has increased.
According to information presented by Dave Smalley, chief financial officer and deputy general manager, there will be “No change in 2026 average wholesale rate increase of 6.3%.”
The reasons for these cost increases were cited as coming mainly from the “aeroderivative combustion turbines capital project, renewable projects that are not under contract and general operations and maintenance expenses.”
These aeroderivative gas turbines have resulted in a $270 million increase for the PRPA. This large budget increase stems from various “gas chain supply chain challenges,” Smalley said.
These include: backlogs and delays in acquiring gas turbines and materials, global demand causing long wait times, with the U.S. competing globally for limited turbine manufacturing capacity, coal plant retirements, labor shortages and manufacturing constraints.
Smalley elaborated in his presentation, saying that many power companies have been following the same route as the PRPA, following coal plant retirements. This switch to gas turbines has caused an uptick in demand for parts and resources, creating a supply chain problem.
All of these constraints have led the original budget for the project to cost more than what PRPA expected last year. $350 million was the amount originally assigned to the project in the 2025 budget, but now it's up to $623 million.
The renewable wind project is also being affected by cost increases.
“Renewable energy costs have been increasing due to a combination of economic, policy and supply chain factors, the latest estimate is a 40% increase,” Smalley said.
The PRPA board recommended these changes to the current rates:
7.5% in 2027 and 2028
5.5% in 2029 through 2032
5% in 2033
2% in 2034 and 2035
The PRPA board is confident once they enter into a new power organization, the Southwest Power Pool, and the turbine and wind project contract is in place, they will be able to lower the rate increases again.
The PRPA’s next steps include introducing a resolution this month to adopt 2026 Tariff Schedules, including a 6.3% average wholesale rate increase and a resolution to support 7.5% average wholesale rate increase for 2027 and 2028. Further down the line in Spring 2026, the 2027 individual charges will be presented and will vary based on cost of service but will average 7.5% while also implementing rate increases to each owner community that will vary based on charges and load factors – may be more or less than the average wholesale rate increase.
Ava Fricke is a political journalist focusing on written media.