Monday, August 30, 2010

Electricity is our business...but WATER affects all of us too!

I am not a water expert in any way. But I do know that water is extremely important to everyone in Nebraska. In the past, Nebraskans were fortunate in that we had just about all the water available that everyone needed. Well, that changed with the latest drought. Now, we have competition for limited water resources. Under the compact agreement, Nebraska must deliver sufficient water to Kansas for compliance, even in water short years. This has become an extremely volatile issue for everyone in the Republican River valley. On the Platte, the endangered species act will require an ever larger amount of water to meet compliance issues. In both cases integrated resource plans have been developed by the natural resource districts and the department of Natural Resources and if river flows are not sufficient, water limiting and irrigation shut-down is expected.


This course of action will end up having devastating results on the agricultural economy in Nebraska. In the Dawson Public Power service territory, the Platte River is considered over allocated from Elm Creek west to Southerland. If in a given irrigation season the quick response wells are shut down (those within 2 1/2 miles of the river), at today’s rates the District would lose $3.8M in revenues as a direct consequence of that action. Every rural Dawson customer and most businesses we serve in that portion of the valley will have substantial negative impacts as well. This appears to be the path we are now going down.

Recently, I had a chance to listen to a gentleman by the name of Frank Kwapnioski who is promoting a concept called the water balance approach to managing our water resources. This is not a new concept, it has been successfully used in China and elsewhere. In essence it takes all of the current data, water studies and water models currently being used and incorporates this information into a comprehensive basin wide approach to water management. It looks at all consumptive uses in the basin on all parts of the basin, not just irrigation and stream flows. This concept will look at all the water going into the basin, how that water is being used, and how much leaves the basin.

As I said at the beginning of this article, I am not a water expert, but I feel the path we are now on will lead to negative results for too many in my part of Nebraska. I believe the water balance approach to managing our water resources is fresh new look and deserves a fair hearing to determine its merits. It sure can’t hurt.

Watch for more information about this project!

Robert A. Heinz, General Manager

Tuesday, August 17, 2010

WIND POWER...what you need to know for wind development on your land.

The recent passage of the wind for export legislation in Nebraska this past unicameral has sparked renewed interest by wind developers to obtain leases on the best potential sites in the state. That means that farms and ranches in good wind areas with transmission lines in the vicinity are very desirable for development.

We can anticipate quite a number of new wind developments to begin production in the next several years. We know that developers are looking at several locations in the Dawson service area. We support the development of these projects where it make economic sense but we also want you, our customers, to keep your eyes wide open if find yourself in lease negotiations. Here are a few things to consider. This is not an all inclusive list but will hopefully help you protect your property interests.

 
• Meet with your neighbors to help determine the interest and potential impacts

• Hire an attorney to review any lease before signing

• Determine how much and how long will your land be tied up (construction and operation)

• What impact will heavy equipment have on your property, such as large cranes

• Provisions for restoration of site after the construction phase

• Provisions for maintenance during operations

• Provisions for restoration of the site when the lease expires

• What affect will it have on future use of the property

• Can additional turbines be placed and what is the notification, process, compensation and location

• What affect will a lease have on your insurance, taxes or USDA policies, etc.

• How will you be paid, fixed payments, royalties or a combination of each

• Research the company you are dealing with, are they experienced with a good reputation

• What happens if the company goes bankrupt

 These are exciting times and this type of development poses an opportunity for additional revenue for our area. It also ties up your property for 20 to 50 years so you really need to understand all of the implications of your lease. Good luck in your negotiations!

 
Robert A. Heinz, General Manager

Monday, August 9, 2010

Electric Distribution System Upgrades

Dawson Public Power District covers a 5,000 square mile service area with 5,747 miles of line which delivers power to 22,366 accounts. This electrical plant is valued on the books of the District at $123M.

Just like any other valuable asset, this electric distribution system needs continual upgrades, repairs and improvements. This system is made up primarily of two portions. The first is the backbone high voltage sub-transmission and substation portion. Over the past 15 years, considerable amount of funds have been used to upgrade our backbone delivery system with new sub-transmission lines and new and upgraded substations. Over the next 3 years, Dawson will complete the majority of the backbone upgrades which now lie south of I80 which will improve reliability and add growth capacity for Farnam, Eustis, Elwood, Smithfield, and Johnson Lake.

The second major portion of the electrical distribution system is the distribution line circuits. Generally, three to five line circuits extend out of each of our 52 substations and deliver lower voltage power to homes, businesses, and irrigation wells. There are 4,856 miles of these distribution lines.

Dawson has been in business since 1937. Believe it or not, even after the numerous ice storms which have hit over the years, there are still original line segments with original poles and conductor in use in many parts of our electrical system.

Recently, the Board of Directors completed their strategic planning process. The Board has instructed management to develop plans to identify the distribution line segments which are in greatest need of upgrades and to begin the process of replacing them. We will examine the line condition, age, outage history and number of customers affected to determine the greatest positive impact on system reliability.

Over the next few years expect to see more local distribution lines upgraded throughout the service area. The goal is to replace 40 – 50 miles of distribution each year. Of course this is not cheap to do. We expect the annual cost to be in the $2 – 3M range. It’s a lot of money but this type of maintenance is needed and must be sustained over the years to keep the system in good shape.

Robert A. Heinz, General Manager