Monday, March 2, 2009

State of Nebraska's Energy Policy (comments)

Earlier this year, the general manager of Dawson PPD (Robert Heinz) shared our viewpoint for the creation of a new energy policy for the State of Nebraska.

Energy independence
1. While wind shows great promise as a part of Nebraska’s energy future, you must know that it is not a base load resource. Because wind can be unpredictable and only able to meet our power needs approximately 30% of the time, dependable backup generation must be available at all times. Currently in Nebraska, the majority of that firm base load generation is provided with coal and nuclear. Wind is not the answer to replace needed busload generators.
2. If Nebraska increases our number of wind generators, they will most likely be built in the best wind areas such as the sand hills and panhandle areas. In order to get the power to more populated areas we will need to make substantial investment in additional transmission lines. According to NPPD, these sized lines could cost between $1.5 to $2 million per mile. Please consider who will site, build and ultimately pay for these transmission lines. How will the Nebraska electric customers be protected from price shocks, especially if a large amount of this power is exported to other states?
3. We oppose state mandates that would impose minimum levels of alternative energy capacity, such as a Renewable Portfolio Standard. While we agree that we need to utilize more wind and solar energy, we need to add these resources in a way that makes strides for the environment without raising energy prices dramatically. We need to find the correct balance.

Job creation and economic development
1. We see a potential for Nebraska to become a leader in the research and development of methane digester technology at large scale animal facilities. These units could provide power, benefit the environment and potentially have a good financial turnaround.
2. As wind generation developers come into the state, we need to have guidelines for leasing that protect landowners.
3. We support the development and siteing of additional cellulosic-based ethanol plants in Nebraska.


Energy efficiency for government
1. The lowest cost kilowatt-hour in Nebraska is the kilowatt-hour not consumed. Energy efficiency has the potential to benefit consumers who will save on their electric bill and generators who will be able to use the additional capacity to serve more customers with our existing resources. We need to expand voluntary programs, and develop fiscal incentives to reap greater benefits from energy efficiency. Geothermal heating and cooling, efficient lighting and irrigation efficiency all can contribute to using our energy resources in a responsible manner.
2. We need rural housing initiatives to improve the energy efficiency of homes in our state. Older homes, rental homes and the homes of low-income families need to be improved. Dawson PPD also believes that the Energy Office loan process needs to be streamlined to make the application process easier for both customers and lending institutions.

In conclusion, Dawson Public Power thanks you for this opportunity to share our thoughts about electric energy. While we have great opportunity to change our future, we ask that you seek a balance between the benefits and the cost. Electricity powers our economy. We must be smart in examining all potential energy resources and even smarter in developing real-world business cases to determine which ones are viable to undertake. No matter what we do, we must never forget that it’s the customer who ultimately pays the bill – either through increased electric rates or through higher taxes.

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