The
Nebraska Power Company,
a Maine Corpration, had a franchise for the sale and
distribution of electricity within the city of Omaha since December 1884.
Concerned about its power future, and prodded by the Federal Holding Co. Act of 1935,
Omaha entered into a 3-way contract with American Power and Light Company, the
holding company for its Nebraska Power Company, September 19, 1939.
The terms of the contract were not fulfilled and the Omaha City Council passed a resolution
on February 13, 1945 cancelling the franchise of Nebraska Power and American Power
and Light Companies.
The Nebraska Power Company was granted a license from day to day to operate in
Omaha and rates were set by the City Council.
After several years of controversy, Consumers Public Power District offered to buy
Nebraska Power.
Omahans did not want an outstate power company owning or controlling their electric
utilities. As a result, a commission was formed to study the problem.
Later the 1943 Legislature formed the Omaha Peoples Power Commission supported
by American Power, Nebraska Power, and Omaha officials to acquire Nebraska Power
Company for municipal ownership in Omaha. Controversy existed concerning this
legislation because of the fact that no vote was required from the people to acquire
property.
A local non-profit corporation was formed to hold the stock of Nebraska Power in
trust until problems were resolved.
A contract was signed on December 26,1944 between Loup River Public Power
District and Central West Irrigation Company (later named Omaha Electric
Company, Inc.) to accomplish this purpose.
This action was financed by $15,600,000 in bonds issued by the Eastern Division
of the Loup River Public Power District.
The 1945 Legislature repealed the 1943 bill and placed the Omaha district under
the general laws regulating all power districts in the state.
Also, in 1945, the first Board of Directors was appointed for the Omaha Public Power
District (OPPD).
On October 19, 1946 a note was signed by the board for $42 million to acquire the
property of Nebraska Power Company from the Omaha Electric Company.
Shortly after a $42 million bond issue was sold at a 1.983% interest rate to complete
the financing of the purchase from the Omaha company.
OPPD went into full operation in 1947.
