Appropriation Bill

Utilities can't seize some private power plants

The law limits when a consumer‑owned utility can take a private power plant by eminent domain. A utility cannot condemn a private generator built to serve one industrial customer with new load over 1,000 MW, if the plant sits on or next to the site, uses an equivalent interconnection, and has Nebraska Power Review Board approval. The private supplier and the utility must sign a long‑term deal (like a power purchase, lease, or joint venture) that keeps the utility’s exclusive retail rights, bans the customer from reselling power, gives the utility commercial benefits, and includes a waiver of eminent domain approved by the utility’s board. The industrial customer must pay all fees, congestion charges, and grid upgrade costs caused by the project. The plant may serve only that customer unless the utility approves a waiver. This ban applies to contracts to serve new industrial loads signed on or before December 31, 2031. Separately, certain privately developed renewable energy projects that meet state rules are also protected from utility eminent domain. Districts keep general eminent domain powers in other cases and may choose to limit that power to wind projects.