Omaha Power District Commits Insurance Payouts to Adjust Rates

October 16, 2012

The Omaha Public Power District board has committed to using any insurance payouts related to the shutdown at the Fort Calhoun, Neb., nuclear power plant to adjust customer rates.

The board made the decision on Thursday.

Spokesman Mike Jones says the insurance is used to ease the financial impact of any outages at the Fort Calhoun plant. The plant initially was shut down for routine maintenance, but the Missouri River flooding in 2011 and several regulatory violations have forced it to remain offline.

Jones says the shutdown raised expenses for power. The insurance payoff is aimed at offsetting the financial impact. Jones says the claim was $39 million and a partial settlement of $12.6 million was reached. He hopes the full claim amount will be settled by the end of October.

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