Nebraska Attorney General Mike Hilgers has filed a lawsuit against the Omaha Public Power District (OPPD), alleging that the utility’s plan to retire and refuel several power-generating units at its North Omaha Station violates the core mission of public power.
OPPD intends to retire three natural gas units at the station and convert its remaining two coal-fired units to natural gas. Hilgers says this would reduce total output by an estimated 40%. The utility has said the transition is driven “primarily by environmental considerations.”
Hilgers argues that the proposal would undermine grid reliability and lead to higher rates for consumers, noting that OPPD’s own projections show that maintaining current operations would save more than $40 million over five years and nearly $440 million over fifteen.
“Public power providers should not achieve their self-imposed environmental goals by raising prices for Nebraska consumers,” Hilgers said in a statement. “The proposed changes at North Omaha Station do not align with the fundamental objectives outlined by the Legislature, undermining the promise of public power.”
Hilgers said the lawsuit is not an attempt to control day-to-day utility operations but rather to ensure compliance with state law, which requires public utilities to prioritize reliability and affordability.
The lawsuit seeks an injunction to stop OPPD from moving forward with the plan.
OPPD has not yet issued a public response.