Letter to the Editor

Public Power: A tradition in Nebraska

Tuesday, October 12, 2010

October is public power month and, as the only totally public power state, Nebraska has much to be proud of including providing some of the lowest electric rates in the nation. Even with necessary rate increases to cover the rising cost of fuel and investments in equipment and power lines, our customers pay only what it costs their utility to serve them, whether the electric bill comes from NPPD or another public power or not-for-profit entity.

Reliable service is another area in which Nebraska utilities excel. A diverse resource mix-including nuclear, coal, natural gas, wind and hydro-helps ensure power is available whenever needed.

Another advantage of public power is local control, meaning every Nebraska resident can provide input into how his or her local electric system is operated, both at the ballot box and in open meetings where business decisions are made.

Public power has stood the test of time. Last month, an event celebrating the 75th anniversary of the Rural Electrification Administration was held in McCook. The REA was created on May 11, 1935 with the primary goal of promoting rural electrification.

This year, NPPD is celebrating its 40-year anniversary. The District was formed Jan. 1, 1970 through a merger between Consumers Public Power District, the Platte Valley Public Power and Irrigation District, and the Nebraska Public Power System.

It is interesting to note how NPPD has evolved through the years. In 1970, NPPD served 270 communities at retail and 64 at wholesale. We operated five steam plants, 10 hydro plants and six internal combustion plants. Today, NPPD has wholesale power agreements with 52 municipalities, 25 public power districts and cooperatives, and provides retail service in 80 communities to approximately 88,000 customer accounts. Peak demand on our system was 938 megawatts in 1970. This past summer, customers' billable peak demand was 2,376 MWs. We estimate our load will continue to climb to near 3,400 MWs in the year 2040.

To determine how best we will meet this continued load growth and with what resources, NPPD is teaming up with customers to update our Strategic Plan. The process should be complete at this time next year. By engaging our customers in this plan, we can better understand their future needs and meet them with innovative ideas and solutions. Collectively, we need to think about the challenges ahead of us, such as future environmental regulations associated with greenhouse gas emissions.

Together we will shape our future -- the future of public power. After all, public power is your power, and we are all in this together.

-- Ron Asche, is CEO and President of the Nebraska Public Power District

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