Turning our backs on unfunded federal mandates

Dear Editor,

Contrary to Chuck Hassebrook's assertions, the members of the Nebraska Rural Electric Association are not "turning their backs on the wind."

During the 2010 session the Nebraska legislature passed LB 1048 to allow private investment in wind projects in the state for export. It is far-reaching legislation that opens a new avenue for economic development in rural Nebraska. NREA's member-systems supported LB 1048 and our staff worked hard to help pass LB 1048. What our members are turning their backs on are expensive unfunded federal mandates like a 20 percent renewable energy standard that will burden our nation's electric ratepayers with higher costs and harm our economy.

Nebraska's two largest electric utilities, NPPD and OPPD (NPPD is the primary power supplier to our members, along with Tri-State G&T), have voluntarily adopted a goal to provide 10 percent of their customer's electricity with new renewable energy by 2020.

NREA's members support these efforts and hope a significant number of jobs will be created. However, decisions about adding electric generation resources should be made on sound business principles, keeping rates low and the electric supply reliable. Nebraska's consumer-owned utilities should be allowed to make their own decisions about their power supply based on their particular needs and location, rather than have these decisions dictated by the federal government.

Current congressional proposals for a federal RES initially would impact OPPD's customers, with Lincoln Electric System and NPPD reaching the threshold in future years. OPPD estimates the impact of increasing its renewable energy above that required to achieve its goal of 10 percent would have a net present value of $130 million to $200 million under the 15 percent standard and from $300 million to nearly $500 million under the 20 percent standard. These costs would result in significant rate increases that would take millions of dollars out of the economy in OPPD's service area and should concern all Nebraskans.

Chuck apparently is unaware that OPPD serves much more rural territory than urban, with its service area covering twelve counties reaching from the borders with Kansas and Missouri, North into Saunders, Dodge, and Washington counties. OPPD has more rural territory and consumers than most if not all of the electric utilities in the state. They serve many low and fixed-income rural customers who cannot afford higher electric rates and who the Center for Rural Affairs should be concerned about. These are not just "urban ratepayers." Even if they were, we would still object to imposition of an expensive unfunded federal mandate on them.

Jay Holmquist,

General Manager

Nebraska Rural Electric Association

Lincoln, Nebraska