New OPPD board faces coal plant and data center costs

Three new members joined the Omaha Public Power District board this week. They inherit a slate of decisions regarding the North Omaha coal plant, data center energy use, and the search for a new chief executive officer. The board currently has eight seats. Former state Sen. Carol Blood won a seat representing subdivision 3. Sara Kohen won the race for subdivision 1. Jay Ignowski won the race for subdivision 2.

The North Omaha Power Plant has been a focal point of debate for the utility. The board voted in late 2025 to delay the plant's retirement until 2028. Blood stated that the neighborhood feels it has been misled by previous leadership. She said the new members need to review the timeline and data to determine the best path for ratepayers. Kohen argued the plant is older than the average useful life of a coal facility. She said the board must create a plan for aging infrastructure to avoid unexpected costs.

The board must also select a new president and CEO. Javier Fernandez resigned from that role last month. Blood said the new executive must have a transparent and effective working relationship with the entire board. Kohen said the candidate should understand public power and the board's specific priorities. The search will be a primary task for the new board in 2027.

Data centers are straining the local power grid. Gov. Pillen told reporters in Fremont last month that the current infrastructure can handle existing demand. He said the state must protect ratepayers while managing new energy loads. Blood said data centers should pay a fair share of costs without driving up rates or depleting resources. She noted that Nebraska has offered tax incentives to attract new business, but those incentives should not hurt other sectors.

Kohen said voters in her district expressed concern about high power consumption from data centers. She said the board should increase transparency so the public can see how much power is being used and where it comes from. She said the public needs to know who is paying for that consumption.

The governor's office responded to the new board's election. A spokesperson said the governor expects electric affordability and reliability from public power. The office stated that affordability should be the board's only priority. The spokesperson said retiring existing generation and replacing it is more expensive and will increase costs for ratepayers. The office said OPPD should put affordability first at this moment.

The governor's office also addressed OPPD's role in meeting growing energy demand. The statement noted that the governor and the Legislature have passed laws allowing OPPD to grow generation without raising homeowner costs. The office said OPPD is a political subdivision of the state and must comply with state laws. It said the utility should use available tools, such as behind the meter generation, to prevent out of control rate increases.

The new board will hold its first official meeting in 2027. They will review the status of the North Omaha plant and the CEO search. They will also evaluate the impact of data centers on the grid. The board's decisions will directly affect monthly electric bills for customers in the Omaha metro area.