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Reliability, congestion relief focus of proposed Nebraska transmission line

February 3, 2012

Columbus, Neb. – A proposed 345,000-volt transmission line covering 260 miles, which will enhance reliability and relieve congestion on Nebraska Public Power District’s electrical grid system, is now a possibility. The Southwest Power Pool approved a 10-year Integrated Transmission Plan (ITP10) Tuesday, January 31, during a meeting of its Board of Directors in Austin, Texas, that includes two new transmission line segments.

While identified in ITP10, SPP will have to give NPPD a formal notice to construct before detailed planning or construction can begin. Further approvals would also come from NPPD’s Board of Directors and the Nebraska Power Review Board. Once NPPD receives notification to proceed from SPP, NPPD will begin an extensive public involvement process to determine the best route while minimizing impact to landowners. The proposed transmission line is part of a 10 year plan, to enhance the electric grid system in states in the SPP region.

“We are pleased to see this line included in the SPP plan,” said NPPD Vice President and Chief Operating Officer Tom Kent. “But I caution it will be awhile before this high voltage line is built. Planning, engineering, financing arrangements, public input, environmental reviews, and actual construction will take years to complete.” NPPD would be the responsible entity to construct the line.

SPP is a Regional Transmission Organization responsible for ensuring adequate transmission infrastructure in a nine-state region, which includes Nebraska. The proposed transmission line would enhance the reliability of the electric grid by providing an additional parallel path for west-east power flows, particularly in the event of an ice storm such as the one in the winter of 2006-07 that damaged large segments of transmission lines in central Nebraska. The line will relieve congestion, increase transfer capability of the transmission system, and allow for the interconnection of further wind-power development in the state.

The proposed transmission line would consist of two line segments. The first segment is from Gerald Gentleman Station to Cherry County and east to Holt County, covering approximately 222 miles. The second segment will run from the NPPD’s Hoskins substation near Norfolk to a new substation at Neligh, covering approximately 40 miles. The ITP10 plan calls for in-service dates of 2018 for the first phase and 2019 for the second phase.

The proposed line was recommended by Nebraska’s transmission operating utilities and has been supported by an informal coalition of non-utility organizations organized by the Nebraska Power Association known as the Nebraska Transmission Advocacy Group (NTAG), a voluntary advocacy group created to positively communicate to SPP Nebraska’s unified message regarding long-range transmission needs to SPP.

NPPD President and CEO Pat Pope praised the efforts of NTAG, formed through the Nebraska Power Association, bringing together the state’s electric utilities and non-utility organizations, including various agencies of the State of Nebraska and wind developers. “This group has provided unified feedback and advocated to SPP about the transmission needs in Nebraska,” said Pope.

NPPD’s transmission line siting and routing process is extensive and includes establishing study areas first, followed by the development of study corridors and alternative routes, before determining a final route. Numerous public open houses are held along each step of the process, allowing utilities to interact with various stakeholders and gather information in order to determine a route that will minimize the impact to landowners. This effort also includes significant environmental reviews with various environmental and wildlife agencies and working with local governments.

The estimated cost of the line is approximately $380 million, although if built, Nebraska ratepayers would not be obligated for the total cost of the project. SPP uses a cost-sharing methodology for the construction of transmission lines in its region, with NPPD’s share being seven percent. At the same time, Nebraska transmission-owning utilities share in the cost of construction projects in other states within SPP’s regional boundaries.

SPP indicates that there are a number of benefits gained from the transmission projects including improving access to lower cost generation by reducing grid bottlenecks, adding renewable energy to the grid, improving reliability, and providing more efficient energy delivery.

View SPP News Release

Anticipated snowstorm postpones robotics competition

February 2, 2012

Stromsburg, Neb. – A forecasted winter storm warning and heavy snows projected for central Nebraska, which could create hazardous travel conditions, has forced postponement of this Saturday’s Cross County Robotics Tournament scheduled for this Saturday.

The event has been rescheduled for Saturday, February 18 at Cross County Community Schools, 1270 123rd Road in Stromsburg, and will begin at 11 a.m. and scheduled to be completed around 5 p.m.

Robotics competition descends on Stromsburg

January 30, 2012

Stromsburg, Neb. – A unique event with unusual competitors will be on display this Saturday, February 4, in Stromsburg. The competitors will be robots – guided in their actions by student teams.

Student teams from several Nebraska and Colorado high schools and middle schools will be competing in the Cross County VEX Robotics Tournament Saturday at Cross County High School. Competitions of this type have taken place since 2006 and have evolved into national and world competitions.

The Cross County competition is being sponsored by Central Community College-Hastings campus and Nebraska Public Power District. The event, to be held at the Cross County Community Schools, 1270 123rd Road in Stromsburg, begins at 11 a.m. and will be completed around 5 p.m.

As of early this week, 24 teams had registered for this unique competition.  Teams entered from Nebraska represent Crete, Holdrege, Grand Island, Waverly, Mount Michael, St. Patrick’s Catholic School, Ravenna, Chase County, Cross County, and Aurora, plus a team from Berthoud, Colorado.

Student teams build and program robots to meet the game challenges that VEX Robotics create each year, with the game challenge this season being VEX Gateway.  Students, with guidance from their teachers and mentors, aim to build the most innovative robots possible and work together to obtain the most points possible by scoring (or de-scoring) points using barrels, balls and gates.

VEX Gateway is played on a 12 foot by 12 foot square field with two alliances – one “red” and one “blue” – composed of two teams each, competing in matches consisting of a twenty-second autonomous period followed by two minutes of driver-controlled play. The object of the game is to attain a higher score than an opponent alliance by scoring barrels and balls in goals, earning bonus points and doubling or negating goals.

The top team in the competition will qualify for the U.S. National VEX Robotics Championship to be held in Omaha in March 2012, and for the VEX Robotics World Competition to be held in Anaheim, Calif., in April of 2012. For the Cross County competition, awards will be given to teams for various categories that include the tournament champion, tournament finalist, and special awards for excellence, sportsmanship, and design.

“In addition to just having a great time and building amazing robots, this program helps develop students learn engineering, technical and programming skills needed in of building a robot, plus develop teamwork skills, leadership and sportsmanship,” explained NPPD Outreach Programs Specialist Kim Liebig.

NPPD and Central Community College-Hastings campus have joined together to harness the power of competitive robotics to engage students and promote interest in science, technology, engineering and mathematics (STEM) education to ensure a skilled workforce for Nebraska.

NPPD to issue up to $235 million in bonds

January 24, 2012

Columbus, Neb. – The Nebraska Public Power District plans to issue approximately $235 million of fixed-rate, tax-exempt bonds during the week of January 30, 2012. An order period for retail and institutional investors is scheduled for January 31.

Proceeds from the bond sale will be used to finance the costs of certain generation and transmission capital additions to NPPD’s system, and to refund a portion of the outstanding General Revenue Bonds. The proceeds will also be used to pay financing costs.

It is currently anticipated that the bonds will be issued in $5,000 denominations or any integral multiple thereof.

NPPD has selected J. P. Morgan as its senior bond underwriter. Other underwriting firms include Barclays Capital, BMO Capital Markets, Goldman, Sachs & Co., Morgan Stanley, Ramirez & Co., Inc., RBC Capital Markets, Wells Fargo Bank, National Association, Ameritas Investment Corp., D.A. Davidson & Co., Edward D. Jones & Co. L.P., Piper Jaffray & Co., Smith Hayes Financial Services Corp., and US Bancorp.

The bonds will be repaid over a 22-year period. Individuals interested in purchasing the bonds should contact their broker or financial advisor.

NPPD’s Preliminary Official Statement and the information contained therein is subject to completion, amendment or other change without any notice. The bonds described therein may not be sold, nor may offers to buy be accepted prior to the time the Official Statement is delivered in final form. Under no circumstances shall the Preliminary Official Statement constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these bonds in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the applicable securities laws of any such jurisdiction. A Preliminary Official Statement is available for review at http://www.nppd.com/about-us/financial-information/.

Work underway on South Sioux City transmission line

January 20, 2012

South Sioux City, Neb. - Foundation work is currently underway on the south route of Nebraska Public Power District’s South Sioux City 115,000-volt Transmission System Expansion Project.  The setting of poles and stringing of transmission lines will continue throughout the spring and summer.

The $20.5 million South Sioux City project consists of two transmission line segments – one known as the south line route and the other as the north line route. NPPD’s Board of Directors awarded the construction contract this past November to Brink Constructors, Inc, a third generation family-owned electrical contractor with over 60 years of experience in construction of high-voltage transmission lines.

The construction contract is for approximately $5 million dollars.  NPPD has worked with Brink on numerous projects in the past, including emergency storm restoration work and is currently constructing the Axtell to Kansas 345kV transmission line.

The south transmission line route will run from the existing Twin Church substation (located west of Dakota City) east to the new South Sioux City substation (located along C Avenue between South Sioux City and Dakota City), spanning approximately seven miles. The north line route, approximately 10 miles in length, will also start at the Twin Church substation and generally head north into South Sioux City, east across State Route 77, and then follow the railroad tracks south and eventually connecting up with the same new South Sioux City substation.

NPPD has obtained 100% of the easements along the south route and is now working to obtain easements on the north route over the next few weeks.

“Barring any major weather delays we anticipate construction to be completed and the system to be operational by the end of the year,” NPPD Senior Project Manager Craig Holthe said. NPPD will use 94 steel poles and 167 wood poles along the two new transmission lines.

“The cooperation of the many landowners we have worked with has been excellent. Success of all projects like this by NPPD includes all parties working together to build long term relationships,” Holthe commented.

As noted earlier, foundation work began this month and is expected to be completed in late April. Erection of poles for the project is scheduled to begin in February.

Kearney’s Ronald Larsen to lead NPPD Board in 2012

January 12, 2012

Ronald Larsen, Chairman

Columbus, Neb. – The Nebraska Public Power District Board of Directors Thursday elected Ronald Larsen of Kearney as its chairman for 2012. Also elected were Gary Thompson of Beatrice as first vice-chairman, Edward Schrock of Elm Creek as second vice-chairman, and re-elected Mary Harding of Lincoln as secretary.

Larsen began his first term on the NPPD Board of Directors in 2005 representing Buffalo and Kearney counties that comprise Subdivision 3. He served as the Board’s first vice-chairman in 2010 and 2011, and second vice-chairman in 2009.

A native of Kearney and a local businessman, Larsen is a graduate of Kearney High School and the University of Nebraska at Kearney (Kearney State College). A former mayor of Kearney who served four years, he also served on the City Council for 16 years, the Kearney Area Chamber of Commerce, the UNK Advisory Council, and was a founding member of the Kearney Softball Association.

He has also served on the boards of Good Samaritan Hospital, Buffalo County Economic Development Council, the Great Platte River Archway, the Kearney YMCA, and Sentinel Health of Kearney.

The Board of Directors also elected Vice President and Chief Financial Officer Traci Bender as treasurer, and re-appointed Donna Starzec as assistant treasurer, and Christine Pillen as deputy assistant treasurer. Jan Modelski was re-appointed as assistant secretary and Sandra Keefover as deputy assistant secretary. All are from Columbus.

Note: Photos of the Board members are downloadable for the media on NPPD’s website at http://www.nppd.com/about-us/board-of-directors/.

Diversity: the best solution for Nebraska’s ratepayers

December 29, 2011

Columbus, Neb. – The Nebraska Public Power District provides electricity for approximately 1 million residents and businesses in Nebraska either directly or indirectly through other public power utilities in the state. NPPD is one of the state’s largest generating utilities and sells the power it generates at retail to customers in 80 communities, as well as to 52 municipal utilities and 25 other public power districts and cooperatives throughout Nebraska.

“Serving the people of this state is a responsibility we take seriously and have since our inception,” said NPPD President and CEO Pat Pope. “NPPD has a long history of generating electricity at rates that are among the lowest in the nation. And we use a diverse resource mix to ensure we meet the challenging reliability, cost, and environmental expectations for utilities today.”

NPPD is currently conducting a “Generation Options Analysis” to assess the benefits, costs, and challenges of its power plants today, as well as what resources it may use in the future. Current options include increasing NPPD’s use of natural gas and nuclear power, and adding more wind generation. Part of the analysis is the role of existing coal-fired generation including Sheldon Station near Hallam, Neb., and NPPD’s largest power plant Gerald Gentleman Station near Sutherland.

“We currently generate approximately 50 percent of our electricity using coal, which is a low-sulfur and economical fuel source,” said Pope. “Gerald Gentleman Station is NPPD’s largest and lowest-cost generating facility. It helps keep Nebraska’s electric rates low. With a national movement to reduce emissions from coal-fired facilities, we are investing in technologies that will keep our power plants in compliance with new environmental regulations, yet we still believe coal can be one of several fuel sources used to keep rates low and electricity reliable. We will be sharing the results of this analysis with the public and seeking their feedback in the first half of 2012.” 

Every fuel has its benefits and challenges. Low-sulfur coal is a low-cost, dependable fuel produced close to Nebraska. However, new Environmental Protection Agency regulations may require NPPD to reduce the amount of power generated from its coal-fired plants. NPPD’s Cooper Nuclear Station uses uranium as its fuel source to generate approximately 30 percent of the District’s power. The nuclear power industry is highly regulated and has received even more attention following the Japanese earthquakes and tsunami in March 2011. Wind power is perceived by some to be a replacement for both nuclear and coal, yet wind power cannot be relied upon to provide electricity twenty-four hours a day, seven days a week like coal and nuclear have for decades.

“Wind generation is available approximately 35-40 percent of the time, but not necessarily at times when we need the power,” said Pope. “It definitely has its place in our generation mix, yet it is unrealistic to think wind power can replace all of NPPD’s baseload generation for customers. Our commitment is to be diverse in order to also be low-cost, reliable, and environmentally responsible and meet our customers’ needs.”

NPPD transmission activities for pipeline on hold

December 13, 2011

Columbus – Based on TransCanada’s recent decision to voluntarily re-route its proposed Keystone XL pipeline out of the Sand Hills, Nebraska Public Power District (NPPD) is delaying activities on associated transmission infrastructure planned to serve the pipeline until further notice.

This includes putting on hold activities such as procuring materials and supplies, acquiring easements from landowners and clearing right-of-way. The exception is for work already begun to grade land for development of future substation sites. In these substation locations, NPPD is completing restoration work that will place the properties in acceptable conditions for the long-term, or until new planning and engineering studies are completed.

When a new pipeline route is determined, NPPD will need to conduct its own planning and engineering assessments to determine any new electrical service obligations that may be required to support the Keystone XL pipeline in a new location.

“Completing a transmission line project from start to finish takes several years,” said Vice President and Chief Operating Officer Tom Kent. “We started working on this project about 30 months ago and have held multiple public meetings, along with performing surveying activities and engineering for the three transmission line segments that were identified to serve the original pipeline route.”

Routes for these proposed three lines have been approved by the Nebraska Power Review Board and include a new, nine-mile transmission line segment near the Clarks/Central City area, a 37-mile line segment near the Ericson/Petersburg area and a 28-mile line segment in the O’Neill/Stuart area. These lines and the associated substation facilities are intended to provide electrical energy to local utilities that would serve the pipeline directly.

The local utilities in the respective areas for the three line projects include: Southern Power District in the Clarks/Central City area; Loup Valleys Rural Public Power District in the Ericson/Petersburg area; and Niobrara Valley EMC in the O’Neill area. NPPD had also been working with these utilities to relocate some of their existing retail distribution lines to prepare for construction of NPPD’s transmission lines, and this work has also been stopped.

In addition, right-of-way agents began requesting easements from landowners along the final transmission line routes for this project beginning in June 2011. As stated, work to acquire any more easements has stopped, and NPPD will refrain from recording any signed easements at the Register of Deeds offices until further notice.

“Landowners who have already signed an easement for the transmission line, are entitled to retain the money paid for the easement whether the line is built or not,” explained Kent. “NPPD will contact those with an easement after a final pipeline route has been established and will inform them whether or not the easement will remain and be recorded, or if the easement document will be nullified.”

Until that time, easements and all terms and conditions are valid and enforceable. Landowners who have signed a transmission line easement should contact NPPD if they desire to do any work or construction that may be in conflict with the easement area, and NPPD will work with them to resolve any issues.

TransCanada is responsible for the cost of all electric facilities required to serve its pipeline and is reimbursing NPPD for all project expenses incurred. NPPD will stay in contact with TransCanada as the new pipeline routing process develops.

“NPPD sincerely appreciates the patience and understanding of those impacted by this change in process,” said Kent.

Questions or concerns can be directed to the NPPD project team at 1-888-677-3412. More information is also available on www.nppd.com.

Student built robots to square off

December 5, 2011

Hastings, Neb. – Robots, not unlike like those in the 1950’s outer space movies, will be the feature attraction this Saturday for a unique competition at Central Community College’s Hastings Campus.

Student teams from several Nebraska and Colorado high schools and middle schools will be competing in the Second Annual Central Nebraska Middle and High School VEX Robotics Tournament. Competitions of this type have taken place since 2006 and have evolved into national and world competitions.

The Hastings competition is being hosted by Central Community College-Hastings Campus and Nebraska Public Power District. The event, to be held at the Dawson Building Gymnasium on the CCC-Hastings campus, begins with opening ceremonies at 11:15 a.m. Saturday followed by competition that will run until 5:30 p.m.

As of early this week, 24 teams had registered for this unique competition. Teams are entered from central Nebraska (Ravenna, Imperial, Stromsburg, Aurora, Clearwater), the Omaha area, and Colorado.

Student teams build and program robots to meet the game challenges that VEX Robotics create each year, with the game challenge this season being VEX Gateway. Students, with guidance from their teachers and mentors, aim to build the most innovative robots possible and work together to obtain the most points possible by scoring (or de-scoring) points using barrels, balls and gates.

VEX Gateway is played on a 12 foot by 12 foot square field with two alliances – one “red” and one “blue” – composed of two teams each, competing in matches consisting of a twenty-second autonomous period followed by two minutes of driver-controlled play. The object of the game is to attain a higher score than an opponent alliance by scoring barrels and balls in goals, earning bonus points and doubling or negating goals.

The top teams in the competition will qualify for the U.S. National VEX Robotics Championship to be held in Omaha in March 2012, and for the VEX Robotics World Competition to be held in Anaheim, Calif., in April of 2012. For the Hastings competition, awards will be given to teams for various categories that include the tournament champion, tournament finalist, and special awards for excellence, sportsmanship, and design.

“In addition to just having a great time and building amazing robots, thiis program helps develop students learn engineering, technical and programming skills needed in of building a robot, plus develop teamwork skills, leadership and sportsmanship,” explained NPPD Outreach Programs Specialist Kim Liebig.

NPPD and CCC-Hastings Campus have joined together to harness the power of competitive robotics to engage students and promote interest in science, technology, engineering and mathematics (STEM) education to ensure a skilled workforce for Nebraska.

NPPD’s Board approves 2012 rate increase

November 10, 2011

Columbus, Neb. – Today, Nebraska Public Power District’s Board of Directors approved a 6.5 percent average rate increase for both its wholesale and retail customers. The increase will take effect January 1, 2012.

NPPD’s wholesale customers include rural public power districts and municipalities, while NPPD’s retail customers are those that receive an electric bill directly from NPPD. NPPD began communicating the need for the increase with many of its customers in early 2011.

Of the 6.5 percent rate increase, 4 percent is due primarily to a 75 percent increase in coal transportation costs next year.

“Fuel prices NPPD pays to generate electricity at its power plants continue to rise,” said President and CEO Pat Pope. “While NPPD is fortunate to rely on a diverse mix of fuel sources to produce electricity, fuel costs have risen more than 50 percent in the past five years and fuel transportation costs are rising significantly in 2012.”

The remaining 2.5 percent of the 6.5 percent increase is due to an increase in annual debt payments for necessary capital investments in electric system plants and facilities.

“In the past five years, NPPD has invested more than $1 billion in new or existing plants and facilities,” said Pope. “These investments are needed to maintain reliability and meet current safety and security regulations.”

As a public power utility, NPPD’s rates are set to cover costs. Revenue received is used to pay operating expenses and make necessary investments in maintenance, construction and system upgrades. The rates do not include a profit margin.

“Keeping rates low and electric service reliable are important components of NPPD’s mission,” said Vice President and Chief Financial Officer Traci Bender. “For the past several years, balancing these goals has been a challenge, yet we are committed to running the organization as efficiently as possible.”

To minimize the rate increase in 2012, NPPD has heavily scrutinized capital and expense budgets and have either cut or reduced costs. The District is also evaluating inventory levels while reducing travel, training and outside services, and staff, where possible.

“We are committed to doing what we can to keep rates as affordable as possible for our customers,” Pope said.

NPPD’s electric rates remain competitive, regionally and nationally. Based on preliminary data from the U.S. Department of Energy’s Energy Information Administration, the average per kilowatt-hour for NPPD customers is 7.35 cents, compared to the national average of 9.88 cents.

The actual percentage rate increase amounts in 2012 will vary depending on the type of customer class (i.e., residential versus commercial) and the amount of power used during a month’s time. The increase to NPPD’s approximately 70,000 retail residential customers, using 1,000 kilowatt-hours per month, equates to an estimated $9 monthly cost increase.

To learn more about NPPD’s electric rates, visit the Rates 101 page.