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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

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.