Lincoln City Council OKs LES 2026 Budget With 3% Rate Hike

LINCOLN, Neb. — The Lincoln City Council unanimously approved Lincoln Electric System's 2026 budget and rate schedules at its Monday meeting, paving the way for a 3% systemwide increase to retail electric rates beginning January 1, 2026.

The Lincoln City Council unanimously approved Lincoln Electric System's 2026 budget proposal Monday, which includes a 3% systemwide rate increase for customers. The action follows a 4% mid-year rate adjustment that took effect in July 2025.

The proposed adjustment is largely driven by rising power costs and transmission expenses — factors that are primarily beyond LES' control, said Emily Koenig, LES vice president of Financial Services and chief financial officer. However, the utility said it is re-evaluating how it allocates resources within its utility, and cost-saving measures have allowed LES to reduce the proposed rate increase from likely being more than 4%.

If the proposal is adopted, an average LES residential customer would see an increase of about $3.22 on their monthly bill. Other rate classes would see adjustments varying from 0.8% to 10% based on the cost of serving each class.

The proposed budget totals $713.7 million, including the operating budget of $328.8 million and the capital budget of $384.9 million. LES cited a projected rise in net power costs and named the Terry Bundy Generating Station addition and a Rokeby maintenance project among major capital items.

In other business, the council presented Sarah Mason of the Lincoln-Lancaster County Health Department with the Mayor's Award of Excellence for the month of September 2025 in the category of Sustainability and Resilience. The council also approved keno satellite licenses for GolfXperiences LLC at 7125 S 29th Street and 12th Street Pub Inc. at 100 N. 12th Street, and adopted several resolutions related to tax increment financing and downtown business improvement districts.

The council noted it will not meet on December 1 due to the Thanksgiving holiday.