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Nebraska Public Power District to implement innovative solution, curbs carbon emissions while growing economy

April 17, 2015

LINCOLN, Neb. – Nebraska Public Power District  (NPPD), Nebraska’s largest electric utility, plans to replace an existing coal-fired boiler at its Sheldon Station plant in Hallam, Neb. with one that uses clean-burning hydrogen fuel. The hydrogen will be produced by Monolith Materials as a co-product from its production of carbon black using natural gas as a feedstock. The collaborative undertaking is expected to create good paying jobs at the site and enable NPPD to continue to generate and deliver affordable, reliable and sustainable energy to Nebraskans.

To obtain this new hydrogen fuel source in Nebraska, NPPD is working with Monolith Materials – a manufacturing company that produces hydrogen as a byproduct in its production of cleanly made carbon black.  When burned, the hydrogen fuel produces zero greenhouse gas emissions. Through this agreement, NPPD is expected to reduce CO2 emissions at Sheldon Station by 1.1 million tons per year.  The Sheldon Station boiler using hydrogen as a fuel will continue to be capable of generating 125 megawatts of electricity for NPPD’s customers. The boiler conversion is also expected to result in a dramatic reduction in other types of air emissions, as well as aide in NPPD’s maintaining service as a low-cost energy producer for Nebraskans.

“We are embarking on a new chapter in the history of Sheldon Station and electric generation in Nebraska with the decision by Monolith Materials to locate in Nebraska,” said NPPD President and CEO Pat Pope. “Sheldon Station has always been a place of firsts – the first nuclear plant in Nebraska and now the first utility scale hydrogen powered generator. We are very proud of this facility and the people who work here.”

The addition of hydrogen as a fuel source will further NPPD’s diverse generation portfolio and will bring its carbon-free energy sources closer to 50 percent, while reducing air emissions from Unit 2 at Sheldon to close to zero.

“This is an example of the next-generation of American innovation and energy production that will also have a positive economic impact in Nebraska, and deliver clean and affordable energy to the state. This private business-led solution has the potential to support 600 new jobs and hundreds of millions of new capital investment in the state of Nebraska,” said Nebraska Governor Pete Ricketts.

Monolith Materials will use a safe, patented and environmentally friendly process to manufacture carbon black, a common material found in thousands of products Americans use every day including tires, rubber and plastics, printing inks, and batteries. Monolith uses natural gas as feedstock in its process instead of oil or coal-tar as in the conventional process. A co-product of its manufacturing process is plentiful hydrogen, which NPPD intends to use to generate electric energy.

Monolith will build its new manufacturing facility adjacent to Sheldon Station so NPPD can easily access the hydrogen. Monolith will power its new manufacturing facility with electricity from Norris Public Power District, headquartered in Beatrice, Neb.

“Americans care about the quality of their air and water, and the sustainability of their everyday household products and energy use,” said Robert Hanson, Monolith’s co-founder and Chief Commercial Officer. “Together, Monolith and NPPD are helping reduce pollution, while still adding jobs and maintaining energy production. Additionally, Monolith plans to bring a cleaner process to a carbon black plant for the first time in the United States, which will help our country grow this important industry and expand America’s manufacturing economy.”

This initiative is not dependent on federal government grants or loan guarantees. Instead, innovative technology, affordable electricity and the country’s vast supply of low cost natural gas allows for the production of products at market competitive prices.

“This is the first large-scale utility operation to generate electricity through the use of hydrogen and something in which NPPD takes pride in having the opportunity to lead the way,” added Pope.

The companies expect to break-ground on their respective operations in 2016, with an expected completion date of 2019.

For more information, view www.nppd.com.

ABOUT NPPD

NPPD’s mission is to safely generate and deliver reliable, low-cost, sustainable energy and provide outstanding customer service. Working in partnership with the state’s rural public power districts, cooperatives and municipalities, NPPD helps serve an estimated 600,000 Nebraskans in 86 of the state’s 93 counties with retail or wholesale electric power and energy-related products and services.

ABOUT MONOLITH

Monolith develops innovative, cost effective, and environmentally sustainable technologies that convert natural gas into chemicals and materials for customers around the world. Monolith’s proprietary process, which utilizes natural gas instead of oil or coal tar as a feedstock, is more efficient as well as significantly more environmentally friendly than alternative methods of production.

Monolith is backed by KERN Partners, a leading energy sector private equity firm, and First Green Partners, a leading investment company focused on industrial technologies in energy, agriculture, and materials. Monolith is headquartered in Redwood City, California.

ABOUT NORRIS PUBLIC POWER DISTRICT

Norris Public Power District is a public corporation and a political subdivision of the State of Nebraska providing electric power to approximately 18,650 customers in a five-county area of southeastern Nebraska consisting of Gage, Jefferson, Lancaster, Saline and Thayer counties.  The District’s electric system includes 5,061 miles of subtransmission and distribution lines.

When are rates set?
NPPD rates are reviewed annually, and any proposed rate changes are normally approved during NPPD’s December Board of Directors Meeting.

Will my bill be higher this month because of the cold weather and rolling outages?
Most NPPD customers can expect to see a higher monthly electricity bill this month due to the recent cold weather event which caused customers to have higher usage.  A higher bill would not be the result of a rate increase however because the rates did not change.

Does my NPPD rate change throughout the year?
When proposing a rate change, NPPD typically sets and approves rates during the December Board of Directors Meeting. The rates that are approved go into effect February 1 of the next year.

The only other time NPPD’s rates change during the year is when the higher summer rates automatically go into effect for the months of June through September. Aside from this, any increase or decrease in your bill is likely tied to increased energy usage during severe cold or hot weather.

NPPD retail rates have remained steady with no overall increase in eight years.

How will February’s cold temperatures and rolling outages impact my rates in future years?
The financial impact of the most recent historic polar vortex events as it relates to rates are unclear at the present time. Many factors, including future weather impacts, load growth, and the cost to generate and deliver electricity will impact NPPD’s financial position and rates.

How will cold temperatures and rolling outages impact my monthly bill?
Simply put, if you use more electricity than “normal” you will have a higher bill. Rates have not changed. Think of it as a consistently priced fuel, that never fluctuates in price per gallon. If you need to fill up more often, it will require a larger amount of product, and as a result you have higher costs.

Does it take more energy and cost more to lower my thermostat now, only to raise it later to regain warmth?
This is a myth that many have heard for years. Contrary to belief, your system will operate for longer periods to recover and heat pump systems may switch to supplemental or auxiliary heat, but overall energy use is reduced if the setback occurs over at least a few hours. 

NPPD operators at our control center handle increases and decreases in load and train for these situations. The operators refer to this as the Cold Load Effect. When customers are returned to service from a long outage, there can be a sharp increase in electricity usage that must be accounted for. As motors begin to start when the load is energized and more equipment powers on than was previously when the customer was interrupted. This means, when there are several customers experiencing an outage at the same time, operators need to consider the load when the circuit is restored can be higher than when it was interrupted. The longer a circuit is interrupted, the more pronounced the Cold Load Effect will be.

In the case of this most recent event, homes were using heat so consistently during the day and the interruptions were short enough that there was no significant change in electricity usage when one circuit was brought back online and another was turned off. During the rolling blackouts, when one group of customers was experiencing an outage, a new set of customers would betaken offline before the first group was returned to service. This helped ensure that there were no spikes in electricity usage that would have a negative impact on the generation and load balance. 

Who can I contact for assistance with payment arrangements for my NPPD bill, or information on assistance agencies?
Payment arrangements can be arranged by contacting NPPD at 1-877-ASK-NPPD.

Those in need should also contact NPPD at the above listed number for more information and a listing of energy assistance from local agencies.

What is a rolling blackout outage?
Rolling blackouts, also known as rotating outages, are controlled, temporary interruptions of the electrical service directed by the Southwest Power Pool (SPP). These outages can occur when electricity generating resources cannot meet the electricity demand in the region. NPPD and others must reduce demand in an amount directed by SPP and act upon this within minutes.

When is a rolling blackout necessary?
Rolling blackouts are necessary as a last resort to maintain the reliability of the electrical grid system. SPP directs rotating outages when electricity generating resources cannot meet the electrical demand in the region. They rotate or roll to different systems and areas so we can all absorb a short outage at different times versus a long outage for one specific area.

The recent situation was extraordinary and an unprecedented chain of events, including historic low temperatures across the entire SPP footprint, lack of wind generation, reduced amounts of natural gas because of frozen wells and sky rocking natural gas prices. A situation never seen before in this region since SPP was founded.

Why was there little notice before power was shut off to some customers?
Just like many of our retail and wholesale customers, NPPD received the emergency notices from SPP with little warning, requiring us to load shed with just a few minutes to act.

NPPD did our best in this emergent situation to communicate not only to our large industrial and residential retail customers, but also with as many wholesale customers as we could. This was done with a press release, via emails, regularly scheduled wholesale customer meetings throughout the event, and using social media. Unfortunately, with the short timeframe not all customers were able to be reached before some outages began.

We continue to evaluate and review the events of this situation and will look for ways to learn and improve our process, should it ever be needed again.

Is there an easy way to track my energy usage?
Tracking your energy usage can easily be done by downloading NPPD’s mobile application, “NPPD On The Go!”. Download by searching “NPPD” in the Google Play or Apple App store. Then click “Register” and have your account number, service address zip code, and phone number ready. Finally complete the account information.

What are the benefits of using “NPPD On The Go!”?

  • Fast, easy and secure way to view and pay your bill.
  • View monthly usage and comparison to previous usage.
  • Monitor active outages and report unexpected outages.
  • Direct access to customer support through your mobile device.
  • Request new service or stop current service.
  • Sign up for outage, billing, and usage notifications.

Who and what is Southwest Power Pool (SPP)?
NPPD is a member of the Southwest Power Pool (SPP), a non-profit regional transmission organization in the central part of the United States. SPP is mandated by the Federal Energy Regulatory Commission to ensure customers in the region receive reliable power, adequate transmission infrastructure and competitively priced electricity. SPP and its members coordinate the flow of electricity across more than 65,000 miles of high-voltage transmission lines spanning 14 states.

Why is it important to have a diverse energy mix?
NPPD believes a diverse generation mix serves our customers best. We use wind -- when it is available. We use coal -- which is reliable and helps keep electric rates low. We use water -- one of the oldest forms of renewable energy. We use nuclear -- which offers emission-free, around-the-clock power. We use natural gas -- to complement the portfolio.

NPPD’s diverse energy generation mix helps keep our electricity reliable and keep rates as low as possible.

Public power, as it always does, answered the call to help protect the bulk electric system which serves the central portion of the country and is part of the larger Eastern Interconnect. The system requires real-time balancing of generation and load. In doing so, we also protected our customers from more detrimental, long-term blackouts.

All of NPPD’s plants were available to SPP during this emergency event. They performed as beautifully during the emergency as our NPPD teammates who worked around the clock to manage the safety, health and financial risk for our customers.