City Loses Lawsuit Against Power Supplier

A few years ago, the City of Sidney filed a lawsuit against its electric power provider.

The reason for the suit, according to City Manager Ed Sadler, is the company, Municipal Energy Agency of Nebraska (MEAN), changed the point of delivery, and consequently the price of power increased substantially. Sadler said rates were increased twice totaling a little under 10 percent. Sadler said because of what was happening, the City was already collecting with the expectation that if the City loses the case, MEAN would be compensated by revenue from the rates.

Arbitrators initially ruled in favor of the City. MEAN representatives then appealed to the Nebraska Supreme Court. Sadler said the Supreme Court decision “took a really, really long time.”

The Court decided in favor of MEAN, as announced Tuesday.

“We really thought we had a good chance to win this,” Sadler told the council Tuesday.

He called it a matter of a good legal decision, but a bad political decision.

Mike Palmer, the city’s electric superintendent said the City started the case with very little except a high rate increase. Palmer said customers will have to live with the rates, stating there were no dissenting opinions from the Supreme Court. The loss will cost the City about $13 million in today’s rates, he said.

“We’re paying about $53,000 a month now,” he said.

Sadler said the City will research its options.

“We’ll do some things. It’s hard to say if we’ll be successful. [The Court’s decision] is a blow to us.”