The Municipal Energy Agency of Nebraska (MEAN) has decided to pay $6.3m to the Southwest Power Pool, to settle a power transmission dispute.
The settlement however is expected to cost its member cities and their electric ratepayers, reported Journal Star.
MEAN sells electricity at wholesale rates to 68 communities in Colorado, Iowa, Nebraska and Wyoming.
The agency does not own any transmission lines and depends on a regional network operated by the Southwest Power Pool.
MEAN executive director Gary Stauffer said that although MEAN does not provide any residential service, the $6.3m, by refinancing bonds over five years, will amount to about 30 cents per month for a typical residential customer.
In January 2012, Southwest Power Pool alleged that MEAN inappropriately used the transmission network for two years, which started in February 2010.
Southwest planned to bill MEAN for about $15m in transmission service and penalty charges.