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Nebraska (US-NE)

Market Type: Deregulated (Retail Choice)
SSS Relevance: ⭐⭐⭐ High
Grid Carbon Intensity: ~396 gCO₂/kWh

SSS Factors: significant nuclear capacity, hydroelectric resources, no mandatory RPS

1. Overview​

Nebraska operates a unique electricity market structure as the only state in the U.S. served entirely by publicly-owned utilities, including public power districts, municipal systems, and rural electric cooperatives 1. This not-for-profit model contributes to some of the nation's lowest electricity rates, with an average retail price of approximately 9.07 cents/kWh in 2024, ranking third-lowest in the country 2. The market is regulated by the Nebraska Power Review Board (NPRB), and the state's utilities are integrated into the Southwest Power Pool (SPP) regional transmission organization 13.

The state's generation mix is diverse but undergoing a transition. In 2024, renewable resources accounted for 36% of total electricity net generation, with wind power serving as the primary driver at 32% 2. When including nuclear power (16%), nearly 49% of the state's electricity comes from "clean" or low-carbon sources 2. Despite the growth in renewables, coal remains the largest single source of generation at 43% of net generation, though this represents its lowest level since 1999 2.

Nebraska's grid carbon intensity for the 2024/2025 period is approximately 396 gCO2e/kWh (1,082 lbs CO2/MWh) 2. The state ranks 6th highest in the U.S. for per capita emissions (41.19 metric tons of CO2e), largely due to energy-intensive agricultural and industrial sectors 2. In response to decarbonization pressures, the three major utilities—Nebraska Public Power District (NPPD), Omaha Public Power District (OPPD), and Lincoln Electric System (LES)—have all committed to achieving net-zero carbon emissions by 2050 45.

2. Market Structure​

Nebraska is the only state in the United States where 100% of electricity is provided by publicly-owned utilities, with no investor-owned utilities (IOUs) operating in the state 6. The utility landscape consists entirely of three types of consumer-owned entities:

  • Public Power Districts (PPDs): Political subdivisions of the state, such as the Nebraska Public Power District (NPPD) and Omaha Public Power District (OPPD), governed by boards elected by citizens 6.
  • Municipal Utilities: Owned and operated by cities or villages (e.g., Lincoln Electric System), typically governed by boards appointed by city councils 6.
  • Electric Cooperatives: Private, not-for-profit entities owned by the members they serve 6.

Retail Choice and Regulation Nebraska does not have a deregulated electricity market and does not offer retail choice. The state operates under a regulated monopoly model where utilities hold exclusive rights to supply electricity within designated service areas 7. Unlike states with a public utility commission, rate decisions are made by elected or appointed boards of each individual utility rather than a state-level regulatory body 7.

Wholesale Markets and RTO Participation The state is primarily served by the Southwest Power Pool (SPP), a Regional Transmission Organization (RTO) that manages the electric grid, wholesale power markets, and transmission planning for Nebraska and 13 other states 8. SPP operates as an independent, non-profit entity overseen by the Federal Energy Regulatory Commission (FERC) 8.

History of Deregulation Efforts Nebraska has explored deregulation but has not implemented it. In 1996, the Nebraska Legislature commissioned a three-year study (LR 455) to determine if retail competition would benefit ratepayers, ultimately deciding against it 7. State law (70-1001) requires the Nebraska Power Review Board to monitor "conditions certain"—such as the existence of viable wholesale markets—to determine if competition is in the public interest; these conditions have not yet triggered a shift to retail choice 7. Legislative proposals for a "Retail Electricity Choice Act" (e.g., LB 660 in 2017) have been introduced but have not passed into law 7.

3. Clean Energy Policy​

Nebraska does not have a state-mandated Renewable Portfolio Standard (RPS) or clean energy mandate. Instead, the state relies on voluntary goals set by its publicly owned utilities, which serve nearly 100% of the state's electricity customers 9.

Utility Commitments and Targets​

Despite the lack of a state mandate, Nebraska's three largest utilities have adopted voluntary decarbonization targets, aiming for net-zero carbon emissions by 2040 or 2050 10:

  • Lincoln Electric System (LES): Committed to net-zero carbon by 2040.
  • Omaha Public Power District (OPPD): Pledged to reach net-zero carbon emissions by 2050.
  • Nebraska Public Power District (NPPD): Voted in late 2021 to achieve net-zero carbon emissions by 2050.

Currently, NPPD serves customers with approximately 65% carbon-free energy, sourced primarily from the Cooper Nuclear Station, hydro, wind, and solar 5.

Regulatory Framework and Legislation​

  • Least Cost Mandate: Nebraska law (Section 66-1060) requires public utilities to prioritize "least cost" energy sources while providing reliable service 11.
  • Net Metering: Statewide rules enacted in 2009 require utilities to provide net metering for qualified facilities (solar, wind, biomass) with a capacity of 25 kW or below 9.
  • Recent Legislation (2025–2026):
    • LB1204: Introduced in early 2026, this bill aims to create uniform statewide zoning for solar and wind farms to prevent counties from blocking projects with restrictive rules 11.
    • LB20: Ensures local utilities cannot deny service to farmers using small-scale (under 100 kW) agricultural self-generation renewable systems 11.
  • Legal Challenges: In late 2025, the Nebraska Attorney General filed a lawsuit against OPPD, arguing that its plan to retire coal units in favor of natural gas and renewables violates state mandates for affordability and reliability 12.

Incentives and Funding​

  • State-Level: The Nebraska Department of Environment and Energy administers the Dollar and Energy Savings Loan program, offering low-interest loans for renewable energy projects 13.
  • Federal Funding: In July 2024, Nebraska was awarded $307 million from the EPA to implement emission-reduction measures outlined in its Priority Climate Action Plan (PCAP) 14.

4. Utility Landscape​

Nebraska is the only state in the United States served entirely by publicly owned electric utilities, with no investor-owned utilities (IOUs) providing electric service 6. The utility landscape consists of approximately 166 individual entities categorized into three types: Public Power Districts (30), Municipal Utilities (121), and Electric Cooperatives (10) 15.

The three largest utilities serve over 90% of the state's population:

  • Nebraska Public Power District (NPPD): The largest utility by generation and geographic reach, serving all or parts of 84 to 86 counties. NPPD manages over 7,800 miles of power lines and serves approximately 530,000 customers directly or through wholesale contracts 4.
  • Omaha Public Power District (OPPD): The second-largest utility, serving the Omaha metropolitan area and surrounding counties. It reported approximately $1.5 billion in revenue as of early 2026 16.
  • Lincoln Electric System (LES): The third-largest utility, serving roughly 200,000 residents in Lincoln and the surrounding area with reported revenue of $386.6 million in 2026 16.

All three major utilities have committed to decarbonization goals, aiming to reach net-zero emissions between 2040 and 2050 4. While electric IOUs do not exist in the state, two jurisdictional investor-owned utilities operate natural gas services regulated by the Nebraska Public Service Commission: Black Hills Energy and NorthWestern Energy 17.

5. SSS-Eligible Resources​

ResourceTypeCapacity (MW)SSS EligibleNotes
scale conventionalHydro330✅ Yes (pre-RPS)Legacy hydro
and total stateHydro330✅ Yes (pre-RPS)Legacy hydro
Large Hydroelectric (aggregate)Hydro132✅ Yes (pre-RPS)Legacy hydro facilities
Gavins PointHydro132✅ Yes (pre-RPS)Legacy hydro
Capacity figures for Gavins PointHydro132✅ Yes (pre-RPS)Legacy hydro

6. EAC/REC Registry Infrastructure​

Nebraska does not operate a state-mandated Renewable Energy Certificate (REC) registry. Instead, the state utilizes regional and national tracking systems to issue, track, and retire Energy Attribute Certificates (EACs) based on utility interconnections and market needs 18.

Primary tracking systems active in Nebraska include:

  • North American Renewables Registry (NAR): Identified as a primary tracking system, allowing for the registration, transfer, and retirement of certificates from generators located anywhere in the U.S. and Canada 19.
  • Midwest Renewable Energy Tracking System (M-RETS): A regional system frequently used for voluntary REC claims and projects in the Midwest. It facilitates the tracking and verification of renewable energy generation across North America 20 21.
  • WREGIS (Western Renewable Energy Generation Information System): Serves the Western Interconnection, creating and tracking RECs for verifiable renewable generation in the western region of Nebraska 22.
  • PJM-GATS (Generation Attribute Tracking System): While Nebraska is not a core PJM state, this registry is noted as a major system for emissions data and REC trading that can interface with other systems 21.

Major public power districts manage REC retirement for local programs through these systems. For example, the Omaha Public Power District (OPPD) offers a "Renewable Choice" program, and the Lincoln Electric System (LES) provides a "REC Rider" program to allow customers to claim 100% renewable energy use 23.

State oversight for related incentives is managed by the Nebraska Department of Environment and Energy (NDEE) and the Department of Revenue, which administer renewable energy tax credits. Privately developed renewable facilities must be certified by the Nebraska Power Review Board prior to construction 24.

⚠️ Uncertainty: While search results identify NAR as the "primary tracking system," others indicate that REC tracking is split between WREGIS and M-RETS based on interconnections. The specific dominance or hierarchy of NAR versus the regional systems requires clarification.

7. Grid Emissions​

Generation Mix​

Scope 2 Reporting​

  • SB 253 requires Scope 2 reporting for companies >$1B revenue

Source: EPA eGRID, EIA, state regulatory filings

References​

Sources & Last Updated​

Research Date: 2026-03-10
Data Sources: EIA, EPA eGRID, state regulatory filings, SerpAPI research aggregation

This page was generated using automated research and may contain inaccuracies. Verify critical data with primary sources.

Footnotes​

  1. Nebraska Power Review Board (.gov) ↩ ↩2

  2. U.S. Energy Information Administration (EIA) (.gov) ↩ ↩2 ↩3 ↩4 ↩5 ↩6

  3. Nebraska Chamber of Commerce & Industry ↩

  4. Midwest Energy Efficiency Alliance ↩ ↩2 ↩3

  5. Nebraska Public Power District ↩ ↩2

  6. Nebraska Rural Electric Association ↩ ↩2 ↩3 ↩4 ↩5

  7. Nebraska Power Review Board ↩ ↩2 ↩3 ↩4 ↩5

  8. The George Washington University ↩ ↩2

  9. Clean Energy States Alliance (CESA), The Rural Reconciliation Project ↩ ↩2

  10. RMI ↩

  11. The Rural Reconciliation Project ↩ ↩2 ↩3

  12. Nebraska Clean Cities and Communities Coalition ↩

  13. Clean Energy States Alliance (CESA) ↩

  14. Upper Republican Natural Resources District ↩

  15. Nebraska Power Association ↩

  16. Facebook ↩ ↩2

  17. Nebraska Department of Environment and Energy (.gov) ↩

  18. Ecohz ↩

  19. U.S. Environmental Protection Agency (.gov) ↩

  20. National Laboratory of the Rockies (NLR) (.gov) ↩

  21. CleanCounts ↩ ↩2

  22. CnerG ↩

  23. OPPD ↩

  24. Nebraska Department of Revenue (.gov) ↩