MEAN Executive Committee approves fiscal year-end credit
July 05, 2020
The Municipal Energy Agency of Nebraska (MEAN) Executive Committee, at its meeting in May, approved a $2.9 million credit to MEAN long-term and limited-term wholesale electric participants, based on MEAN’s overall positive preliminary financial results for fiscal year 2019-20.
The credit includes $2 million related to MEAN’s fixed cost recovery charge and $900,000 related to MEAN energy usage (kilowatt-hour) charge. These two components are the primary ways MEAN collects revenue. The allocated credits will be issued in June in a lump sum payment to participants.
The energy charge credit is allocated based on each participants’ proportionate share of total MEAN energy (kilowatt-hour) purchased during the 2019-20 fiscal year. The fixed cost recovery charge credit is allocated to participants based on each participants’ three-year historical average peak electric demand.
The Executive Committee also approved designating approximately $230,000 into MEAN’s Rate Stabilization Account, which is used to help stabilize rate volatility and to fund power plant capital expenses.
The MEAN Board annually evaluates MEAN’s preliminary fiscal year finances and makes adjustments in accordance with MEAN’s financial policies and guidelines.