NPPD pays $5 million for land owned by its own executives

In early 2025, the Nebraska Public Power District (NPPD) acquired a 202-acre tract of land in rural Lancaster County for $5 million. This purchase drew attention because the sellers, Ronald and Donna Starzec, were NPPD employees. According to Richard Painter, a law professor, the sale, which exceeded the land's assessed value significantly, raised ethical concerns but fell within legal guidelines for disclosure. The board discussed the purchase in an executive session to ensure proper legal advice and negotiation protocols were followed. The NPPD's plans for the land included the construction of a new power plant called Princeton Road Station. This project is strategically located near existing transmission lines and railroad infrastructure, indicating its importance for the utility's operational success. However, the board's decision to purchase the property at five times its assessed value has sparked discussions about the potential for conflicts of interest, particularly since the sellers were directly associated with the transaction. Market analysis revealed that the fair market value for the property was approximately $2.3 million, suggesting that the District paid an inflated price. While it is not unusual for properties to sell above their assessed values, the magnitude of this particular transaction raised eyebrows. Discussions among board members suggested that such insider transactions could set a precedent, encouraging future sellers to maintain higher price expectations. The implications of this transaction are significant. Critics, including ethics advocates, argue that having officials engage in transactions that appear to benefit them financially undermines public trust. Despite the legal boundaries regarding disclosure, broader ethical implications merit discussion, especially as the NPPD continues to operate under conditions that require transparency and accountability in public dealings.