70-1001. Declaration of policy.

In order to provide the citizens of the state with adequate electric service at as low overall cost as possible, consistent with sound business practices, it is the policy of this state to avoid and eliminate conflict and competition between public power districts, public power and irrigation districts, individual municipalities, registered groups of municipalities, electric membership associations, and cooperatives in furnishing electric energy to retail and wholesale customers, to avoid and eliminate the duplication of facilities and resources which result therefrom, and to facilitate the settlement of rate disputes between suppliers of electricity.

It is also the policy of the state to prepare for an evolving retail electricity market if certain conditions are met which indicate that retail competition is in the best interests of the citizens of the state. The determination on the timing and form of competitive markets is a matter properly left to the states as each state must evaluate the costs and benefits of a competitive retail market based on its own unique conditions. Consequently, there is a need for the state to monitor whether the conditions necessary for its citizens to benefit from retail competition exist.

It is also the policy of the state to encourage and allow opportunities for private developers to develop, own, and operate renewable energy facilities intended for sale at wholesale under a statutory framework which protects the ratepayers of consumer-owned utility systems operating in the state from subsidizing the costs of such export facilities through their rates.

Source

Annotations

Public policy underlying encouragement of publicly owned electric utilities is to provide power to consumers at reasonable rates at as low overall cost as possible and to avoid duplication of facilities. Nebraska P. P. Dist. v. City of York, 212 Neb. 747, 326 N.W.2d 22 (1982).

Before any electric generation facilities may be constructed, an application must be filed with the board, a hearing held at which any interested party may appear, and approval by the board obtained. Omaha P. P. Dist. v. Nebraska P. P. Project, 196 Neb. 477, 243 N.W.2d 770 (1976).

The 1971 amendment extended the policy of the act to wholesale as well as retail sales of electrical energy. City of Lincoln v. Nebraska P. P. Dist., 191 Neb. 556, 216 N.W.2d 722 (1974).

Public policy of state with regard to electrical service stated. Cornhusker P. P. Dist. v. Loup River P. P. Dist., 184 Neb. 789, 172 N.W.2d 235 (1969).

Legislature authorized board on notice and hearing to establish service areas in the event of nonagreement. City of Gering v. Gering Valley Rural P. P. Dist., 180 Neb. 241, 142 N.W.2d 155 (1966).

The article, of which this section is a part, is constitutional. City of Auburn v. Eastern Nebraska Public Power Dist., 179 Neb. 439, 138 N.W.2d 629 (1965).