Frequently Asked Questions

WHAT

• What is the ETR-Project?
• What is the purpose of the proposed transmission project?
• What does NPPD have to do to convert a line to 345 kV from 230 kV?
• What is the cost per mile to build a high-voltage transmission line?
• Is there an estimated cost for the ETR-Project?
• What will the effect of ETR be on electric rates?

WHY

• Why start (communicating) now?
• How often does NPPD do transmission studies?
• Did the transmission study cover alternative strategies?
• Won't conservation efforts solve the transmission system constraints?
• Besides an ability to carry extra capacity in the larger 345 kV high voltage transmission line, are there other benefits?

WHEN

• When will the ETR-Project begin?
• When will the ETR-Project be complete?
• Has the NPPD Board of Directors approved the project?
• When will the route for the new line between Columbus and northwest Lincoln be selected?
• Do you know when you'll have public meetings?

WHERE

• Can existing lines and poles be used for the new 345 kV line from Columbus to northwest Lincoln?
• Will NPPD try to route the new 345 kV line along section lines?
• In populated areas, how will you place the transmission line structures?
• Are NPPD's wholesale customers along the route study area supporting the ETR-Project?
• What the current transmission line between Norfolk and Columbus built to 345 kV specifications?
• Will the new 345 kV line be built underground?

HOW

• How will the ETR-Project affect electric rates?
• How much will ETR cost?

OTHER QUESTIONS

• Can you explain the flow of power?
• Any consideration for renewable energy source (methane) being part of NPPD's overall energy plan?
• What is the process NPPD will use to work with landowners?
• What about EMF?
• Is the ETR-Project the only transmission project NPPD is working on?

WHAT

Q: What is the ETR-Project?
A: The ETR-Project is an upgrade and new construction of the high-voltage transmission grid in east-central Nebraska. It is composed of two phases.
Basically, Phase I will upgrade to 345 kilovolts an existing 230 kV transmission line from Norfolk to Columbus. Phase II calls for construction of a new 345 kV line from Columbus to northwest Lincoln. Both phases include accompanying substation work.

Q: What is the purpose of the proposed transmission project?
A: When complete, the ETR-Project will strengthen NPPD’s transmission system in east-central Nebraska to support future projected loads and ensure system reliability during peak loads.

Q: What does NPPD have to do to convert a line to 345 kV from 230kV?
A: NPPD will need to install different transformers at the substations. No work is needed on the line between the Hoskins Substation in northeast Norfolk to the Shell Creek Substation north of Columbus, with the exception of an inspection to hardware, wire, etc. to ensure that they are in good condition. When it was initially designed and built, the current 230 kV line from Norfolk to Columbus was constructed to 345 kV specifications, with a future upgrade in mind. That future is now.

Q: What is the cost per mile to build a high-voltage transmission line?
A: Some industry leaders have estimated that it costs $1 million per mile to build a transmission line, but there are so many uncertainties and price fluctuations this is, at best, a ball-park estimate.

Q: Is there an estimated cost for the ETR-Project? 
A: There are so many variables, especially at an early stage of this type of project, that it’s very difficult to put a dollar figure to the ETR-Project. Those variables include route design (a longer route is more costly), structure type, steel cost, availability of construction labor, etc. NPPD’s best estimate in early October 2006 places the cost in a range from $100 million to $140 million.

As an example of the uncertainty of estimating a firm project cost, consider that the price of steel rose significantly from 2005 to 2006, and the price of copper doubled. With this in mind, determining what the price will be in two years when material is ordered is at best uncertain.

Q: What will the effect of ETR be on electric rates?
A: Wholesale increase about 2.25 percent
Retail increase about 1.5 percent
Increase will go into effect in 2010
NPPD will fund project’s capital costs with a 30-year note

WHY

Q: Why start (communicating) now?
A: During the summers of 2005 and 2006 the District’s transmission system experienced new, all-time peak load levels.

Also, load is expected to grow considerably due to general economic growth in the area, development of ethanol plants, new industrial expansion, construction of a new oil pipeline (the Keystone Pipeline) and the continued growth of electric-powered irrigation wells, including conversion of irrigation wells from fossil fuels (such as diesel or propane) to electric energy.

Finally, NPPD completed a study of its high-voltage transmission system in May 2006 which predicted where the weak points in the system would be and recommended an upgrade to the system and the construction of a new stretch of high-voltage power line between Columbus and northwest Lincoln.

Q: How often does NPPD do transmission studies?
A: NPPD prepares a Nebraska transmission plan every two years, with a 10-year outlook. This is rolled into a regional plan, which in turn rolls up to a Mid-Continent Area Power Pool plan every two years. NPPD is obligated by federal mandate to comply with transmission system reliability standards. Looked at in another way, the nation’s high-voltage transmission system is like the Interstate highway system; Nebraska has an obligation to keep its portion in tip-top shape.

NPPD’s recent transmission study highlighted potential weak points in the District’s high-voltage transmission grid, and the system’s response to high temperatures and record loads reinforced the accuracy of the study.

Q: Did the transmission study cover alternative strategies?
A: Yes. In fact, NPPD is implementing several stop-gap strategies to help prop up the system’s weakest points until the ETR-Project is complete. These strategies include installing capacitor banks, upgrading some transformers, promoting conservation and possibly using pricing signals to lessen load peaks.

Q: Won’t conservation efforts solve the transmission system constraints?
Conservation efforts, if effective, could delay the moment when the system might experience problems, but they can’t solve the system’s weaknesses by themselves.

Q: Besides an ability to carry extra capacity in the larger 345 kV high-voltage transmission line, are there other benefits?
A: Yes. The new line will give NPPD an extra path to route energy in case of a disruption somewhere else on the grid. This will enhance system reliability. Also, anytime electric energy flows down a line, some of that energy dissipates or is “lost.” The higher the voltage the power can be sent at, the lower the “line loss.” Therefore, in essence, there is more power available to distribute to those who need it.

 

WHEN

Q: When will the ETR-Project begin?
A: It already has. In late September and early October 2006, the project team sponsored informational meetings with key opinion leaders and NPPD colleagues. Statewide media was informed, and a project website launched.

Q: When will the ETR-Project be complete?
A: Phase I is scheduled for completion by June 2008. This phase entails work at the Hoskins Substation in northeast Norfolk, construction of the Shell Creek Substation and the conversion to 345 kV from 230 kV of an existing high-voltage power line from Hoskins to the Shell Creek Substation north of Columbus.

Phase II is scheduled for completion by June 2009. This phase entails work at the Columbus East Substation and Lincoln Electric System’s Northwest 68th & Holdrege Substation. It also calls for the construction of new 345 kV transmission line from Columbus to northwest Lincoln.

Q: Has the NPPD Board of Directors approved the project?
A: The Board of Directors has approved the project in concept. The ETR-Project team will be going to the Board in November 2006 for approval to order the transformers. NPPD has a 2007 budget for Phase I. This will then follow with Phase 2. The Board has been involved ever since the May 2006 study which recommended the ETR-Project.

Q: When will the route for the new line between Columbus and northwest Lincoln be selected?
A: NPPD is looking at selecting the route in the fall of 2007.

Q: Do you know when you’ll have public meetings?
A: NPPD estimates that the first formal public meeting will be next spring.

 

WHERE

Q: Can existing lines and poles be used for the new 345 kV line from Columbus to northwest Lincoln?
A: Size is significantly different from a 115 kV line to a 345 kV line. Everything (with a 345 kV line) has to be bigger, taller, and the wires have to be further apart. There may be instances where the line route is able to use an existing right-of-way, or the project engineers may be able to double circuit portions of the line. But the double circuit option can cost a lot more money. In order to control the project’s costs and limit its impacts on electric rates, NPPD must focus on feasible route alternatives.

Q: Will NPPD try to route the new 345 kV line along section lines? 
A: Yes, it is required by state law to route along section and half-section lines. This method helps assure a working relationship with landowners along the route. NPPD works with the landowners to put structures in corners to limit any agricultural impact. It is important to NPPD that it continues to have a good working relationship with landowners, recognizing the District will be working with them for a long time.

Q: In populated areas, how will you place the transmission line structures?
A: Routing a new transmission line is an exacting and lengthy process. Many things are taken into consideration. For example, routing engineers look at such factors as number of homes, land use and environmentally sensitive areas, among others. All these items are considered when determining the proposed route. NPPD is committed to establishing a route that has a minimal impact based upon items such as these.  Due to agricultural use, irrigation pivots, etc., towers will probably span a quarter-mile.

Q: Are NPPD’s wholesale customers along the route study area supporting the ETR-Project?
A: NPPD has spoken with directly affected wholesale customers along the route study area. This includes Loup Power District, Cornhusker Public Power District, representatives from Seward County Rural Public Power District, Butler County Public Power District, City of Seward Utilities and Norris Public Power District. Representatives from Lincoln Electric System also attended an informational meeting in Lincoln. They have all been supportive and understand the need. The load growth this new line will serve is their load, being created by growth in their service areas.

For instance, the 345 kV line from Columbus to Lincoln will run through Butler County Public Power District’s service area.

It’s important that NPPD’s Wholesale Customers support this project. Many irrigation well conversions and construction of ethanol plants are happening in their service area(s), their load is increasing; therefore NPPD’s load increases as well.

Q: Was the current transmission line between Norfolk and Columbus built to 345 kV specifications?
A: Yes, it currently is a 115 kV/230 kV double circuit line. But once the upgrades to the substations are made, the existing line will operate at 115 kV/345 kV.

Q: Will the new 345 kV line be built underground?
A: Building a high voltage transmission line underground is not feasible for several reasons. 1.) The cost is anywhere from 10 times or more higher than a regular overhead line. 2.) An 80-mile trench needed to bury the new 345 kV line would have a greater environmental impact than a regular overhead line. 3.) Underground lines historically are not as reliable as overhead lines.

HOW?

Q: How will the ETR-Project affect electric rates?
A: Although NPPD has informed its wholesale customers that there will be an average increase in electric rates in 2007 of 3.5 percent, this is mostly due to expectations of increasing (and volatile) fossil fuel costs to power the District’s electric generating plants. The ETR-Project construction and upgrades to the affected substations are not the driving factors for the increase. Paying for the new transmission line will not have an overly significant impact on NPPD’s electric rates. NPPD will borrow funds for this large capital project as work is done and spread the payments over 30 years.

Q: How much will ETR cost?
A: As of August 20, 2008, it is estimated the ETR Project (new high-voltage transmission line and associated substation work) will require an investment by NPPD of $175 million.

 

OTHER QUESTIONS

Q: Can you explain the flow of power?
A: There is one general principal that dictates the flow of electric power on the grid: the amount of energy generated must always equal the amount of energy needed. Once electric energy is generated, it flows out onto the grid sort of like water into a shallow pan – but remember, there has to be the exact amount of water in the pan, no more or no less, than what is sipped out.

It works (in very simple terms) like this: Electric power is generated at a power plant and then stepped up or increased in voltage and sent out onto the transmission grid. This can be described like pouring the water into the pan with a very large faucet. These are generally referred to as high-voltage transmission lines.

When the electricity gets to where it is needed, it is stepped down or decreased in voltage (otherwise no electric appliance or light bulb could use it). These are generally referred to as distribution lines.

The flow of energy depends upon which power plants are up and running and where the load is. Electric energy is efficient and tends to seek the shortest path of least resistance, but power can essentially flow in any direction, depending upon the need.

Q: Any consideration for renewable energy source (methane) being part of NPPD’s overall energy plan?
A: The NPPD Board of Directors and management do think a robust renewable energy program deserves to be an integral part of the District’s energy plan. NPPD is committed to pursuing renewable energy sources that benefit the District’s customers. NPPD has just built and brought online a 60-megawatt wind farm near Ainsworth, and the District supported a methane recovery/generation project on a hog farm near Dodge, Nebraska. NPPD’s primary goal is to deliver reliability. Given the relatively new strides renewable energy is making in the utility industry and its historic high cost, how renewable energy advances NPPD’s reliability goal is yet to be completely determined.

Q: What is the process NPPD will use to work with landowners?
A: Once NPPD hires a consulting engineer and selects a corridor, a series of public meetings will be held. This will provide landowners an opportunity to share with their views. After that NPPD will narrow the options down to one proposed line route. A public hearing (required by law) will be held, at which point NPPD will invite specific landowners. Then negotiation for easements will take place.

Q: What about EMF?
A: EMF stands for “Electric and Magnetic Fields.” In the late 1980s and early 1990s there was a great deal of research done to discover if a link existed between high-voltage power lines and types of cancer, especially childhood leukemia. After about two decades of research no definite conclusions have been drawn. Studies still continue. For more information, view the following article: Power Lines and Your Health.

Q: Is the ETR-Project the only transmission project NPPD is working on?
A: Each year, NPPD budgets approximately $30 million to build and/or refurbish portions of the District’s existing transmission system. There are several such projects happening in simultaneously with the ETR-Project. It has only been three years since NPPD built 40.25 miles of new 115 kV transmission line near Broken Bow.