While no coal is mined in the State, Nebraska's close proximity to the Powder River Basin's low-sulfur subbituminous coal deposits explains the prevalence of coal in the State's fuel mix. In 1996, 99.95 percent of coal delivered to electric utilities in Nebraska was from nearby Wyoming.⁽¹⁾ Low coal transportation costs (half is delivered by truck and half by rail) are also one of the major factors in accounting for Nebraska's relatively low cost of electricity. At an average price of 5.32 cents per kilowatthour, Nebraska ranks as the twelfth lowest in the Nation, and is significantly below the national average price of 6.86 cents per kilowatthour of electricity, despite its nuclear capability.

The State's use of low-sulfur coal also accounts for the State's low emissions of sulfur dioxide (SO₂), nitrogen oxides (NO_x), and carbon dioxide (CO₂). No Nebraska generators were cited by the Clean Air Act Amendments of 1990 to begin compliance with stricter emissions standards for SO₂ and NO_x. Emissions of SO₂, NO_x, and CO₂ ranked thirty-fifth, thirty-third, and thirty-eighth in 1996. The concentrations of these pollutants per square mile ranked forty-first, thirty-ninth, and forty-fourth, respectively, in 1996. Emissions for all three pollutants increased from 1986 to 1991, and then rose again from 1991 to 1996.

Nebraska was a net exporter of electricity in 1996. Retail sales in the State grew by 3.1 percent annually from 1986 to 1996. Sales to the industrial sector grew the most, at an annual rate of 5.1 percent. As mentioned above, Nebraska's average price of electricity across all customer classes was 5.32 cents per kilowatthour. The average price of electricity for the residential sector was 6.29, for the commercial sector it was 5.49, for the industrial sector it was 3.68, and for the "other" sector it was 6.49 cents per kilowatthour. The other sector includes public street and highway lighting, other sales to public authorities, sales to railroads and railways, and interdepartmental sales.⁽²⁾

Because Nebraska has no investor-owned utilities, Nebraska's stakes in the deregulation game differ from those of other States. In June 1996, legislation was enacted to allow a 3-year study of electric power industry restructuring, with reports due in December 1997 and December 1999. In February 1998, the first report was issued. It focuses on the existing structure of the industry in the State and how to improve it. The second report, due for completion in December 1999, will address competition issues and policy changes that are needed to keep public power viable in Nebraska.⁽³⁾

Endnotes