EXCLUSIVE: Rates Up and So Are Perks

Posted on December 21, 2009
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Following an exclusive investigation into perks at Omaha’s Metropolitan Utilities District (MUD), Nebraska Watchdog has uncovered even more employee extras at the city’s other major utility, the Omaha Public Power District (OPPD).

The results of Nebraska Watchdog’s investigations come as both utilities are raising rates. On Thursday OPPD increased residential electric rates 4.9% for 2010. Earlier this month MUD upped next year’s residential water rates 2.3% and a natural gas rate hike could be approved Friday.

According to records obtained by Nebraska Watchdog, OPPD with its 2,400 employees is spending at least $960,000 on items that include $10,819 for basketball, bowling, and golf leagues, $37,956 for an employee picnic, $120,000 for “vendor and beverage services”, and $101,182 for service awards.

In addition full-time workers at OPPD are eligible for an employee discount on their OPPD electric bill. According to OPPD spokesman Jeff Hanson the discount, which is not provided to OPPD’s eight member Board of Directors, has been on the books since 1936 and survived a 1976 court fight. But Hanson says the electric company does not know how much money is involved. ”We do not track the value of the rate to employees,” Hanson told Nebraska Watchdog.

At MUD’s December 2nd, 2009 meeting where Nebraska Watchdog’s initial perk investigation took center stage, MUD President Tom Wurtz (left) stated publicly that none of MUD’s 860 workers receive any discounts on gas or water.

At that same meeting the MUD board voted to eliminate $219,000 in annual fringe benefits uncovered by Nebraska Watchdog. They included $4,830 for sports leagues, $32,000 for coffee, the annual company picnic with its $32,445 price tag, and a $40,000 wellness program.

OPPD’s wellness program costs $185,000 and Hanson says it “makes financial sense”. According to Hanson some OPPD workers are alive today because the program includes health care screenings that have detected early signs of cancer.

Hanson also defends OPPD’s other perks arguing the Gallup organization has researched the issue of employee extras and concluded they build employee loyalty and result in happier, more productive, and safer workers. According to Hanson OPPD’s Worker Compensation costs have gone from $1.4 million in 2005 to about $800,000 this year.

Nebraska Watchdog uncovered three other perks at OPPD: the Children’s Holiday Party which costs $6,500, Retirees organizations which receive $6,500, and the single largest perk ”Tuition Assistance” which costs $457,300.

MUD kept both its less expensive $57,000 tuition program and its $6,215 dinner for employees who do volunteer work for the gas company. But MUD eliminated funding for its $2,500 Children’s Holiday Party.

According to Hanson the OPPD board has approved its 2010 budget which includes the $960,000 in fringe benefits.

Editor’s note: to see Nebraska Watchdog’s initial report on perks at MUD click here. To see Nebraska Watchdog’s report on rate increases at both MUD and OPPD click here.

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  1. Who Let the Dogs Out? Watchdog Review Arond the Nation

    [...] Joe Jordan at Nebraska Watchdog reports that while utility bills are going up, so are perks at the state’s public utility companies. Santa has come early for a few, well-placed employees at the state’s energy monopolies. [...]

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