Are You Prepared To Pay More For Electricity?

Last week, President Obama announced plans to confront the growing threat of climate change.  He wants to cut carbon pollution by reducing the use of coal to produce electricity.  ”Carbon pollution is contributing to a higher risk of asthma attacks and more frequent and severe storms, floods, heat waves, and wildfires, driving up food prices and threatening our communities.” 

Almost 2/3 of Nebraska’s energy is produced by coal.  Mr. President, what will happen to our electricity prices if you are successful in reducing the use of generating units that use our cheapest resource?  Won’t that drive up food prices and threaten our communities? 

A researcher just published a new study that says chlorofluorocarbons are to blame for global warming since the 1970’s.  By demonstrating the link between CFCs, ozone depletion and temperature changes in the Antarctic, Professor Qing-Bin Lu was able to draw almost perfect correlation between rising global surface temperatures and CFCs in the atmosphere.  Please see May 30^th’s complete article at www.sciencedaily.com.

My point is….one study says this, another says that.   Think of it this way:  there’s a strong correlation between the crowing of a rooster and sunrise.  It doesn’t mean his crowing made the sun come up.  However, if locked in a dark room, one might use the rooster’s crow as an indicator that sunrise has occurred.   We believe a study that best fits our own value system.  We see things not as THEY ARE, but as WE ARE. 

What if the science is not as solid as some would have us believe (we are locked in a dark room).  The correlation between CO2 levels and temperature has been disputed on both sides over the past  40 years.  How sound is the science?  If Dr. Lu has found an independent variable that correlates much better with global temperatures than does carbon, I think we should consider it a valid predictor (the rooster crowing at sunrise) until someone can find a better one.

Ask yourself what will happen if you open your electric bill and it’s three times more than it used to be for the same amount of kilowatt hours AFTER Obama pushed his climate agenda all the way through congress.  Will you blame Dawson Power? 

I’m not against a greener planet.  I’m against pushing an agenda so hard and so fast, that we can’t recover from the negative financial impact it creates on our families, our farms, our communities, and Nebraska.  The price of electricity affects EVERYTHING.  

Gwen Kautz, General Manager

The Memory Of A Paper Trail

The other day a business associate from another company asked me for our rate information for irrigation. Our electric rates are public so it was easy to comply with his request – REALLY EASY.  He had the data in hand within minutes of his request.  Then I stopped to think about the “before computer life” I used to live. 

Email has been revolutionary in the world of business communication. The use of email within a business can greatly increase productivity for employees. Although it cannot and should not replace all face-to-face communication and others forms of communication, internal email usage can cover many areas within the business.

Just a decade or so earlier, this request would have required paper, a copy machine, an envelope, ink, a stamp, and human handling by about 5 different people. Today it requires about 3 clicks of a mouse. For that one request alone, that electronic communication probably saved my company about $10-$15.

My granddaughters have never been without a computer. They have not had to rely on a public library to do a research paper and they have never had to fret about missed phone calls from friends. I don’t want to give away my age but a microwave oven was new technology when I was in my early teens.

In the future, all of our kids’ text books will be accessed through tablet devices. They will not need text book covers, a backpack, pens, pencils or erasers. Losing a text book is devastating but can you imagine how catastrophic it will be for this same teen to lose a tablet computer? That tablet device contains her text books, her homework; it contains her class notes, prior school papers, book reports, flash cards, pictures, email, her Facebook page, and her favorite games. It contains her addresses, phone numbers, doodles, diary and her calendar. Whoever found her iPad, Droid Tablet, Playbook or Nook just found her entire life. Scary thought, huh?

It is our future. People insist on finding the most convenient way possible to live their busy lives. They want an easy way to conduct transactions – whether its communication, paying a bill, accessing account information, making travel arrangements, looking up vacation spots, or shopping. It’s all there….under a keyboard, on top of a mouse, or sliding around a touchpad.

Dawson Power makes doing business with us easy and convenient. Customer-read meters are a thing of the past for most customers. Today our meters send your reading in automatically. You can receive your bill through email. With two clicks and a log-in you can pay it online. If you want to know what we’re up to on a daily basis….ask to be our friend on Facebook!

The Anatomy Of A Distribution System

This is great information for everyone. American Electric Power explains the pieces of a distribution system in language we all understand.



Special thanks to American Electric Power (http://www.aep.com).  

You can reach Dawson Public Power District at (308) 324-2386, http://www.dawsonpower.com; or on Facebook, keyword search dawsonpower

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

Dawson PPD Consumers & Smart Grid

For the past few months, Dawson Public Power District has been working with Nebraska Public Power District and 14 other utility systems in Nebraska to put together a joint grant application for stimulus funds designed to assist us (financially) in building a regional smart grid structure. The entire process has been an impressive endeavor in teamwork.

I’ll be honest… I struggled with the additional costs a smart grid system will impose on our consumers. However, as I’m working through the definition and expectation of smart grid services, I’m beginning to realize the benefits far outweigh the costs.

Reason #1 Whether we (as a utility or a consumer) approve of the smart grid concept or not, it is the way all utilities will be operating in the very near future. Under President Obama’s vision for our energy system, it will be imperative that a smart grid be in place that will allow each consumer to have better control and understanding of their electricity use.

Reason #2 If a cap and trade system is passed by the Senate, even with significant modifications, consumers will need to be able to control usage in order to reduce their electricity costs. Consumers will not be interested in controlling their usage unless it is a simple, easy to understand process.

Reason #3 System reliability will improved based on our ability to detect problem areas before they become outage areas.

Reason #4 Line loss can decrease significantly. Line loss is the amount of electricity “lost” through the system based on resistance on the line (or other line interferences). Interference can be detected through a smart grid system. Reduction of line loss can save thousands of dollars each month.

Reason #5 The bigger picture means our generator (NPPD) can more effectively monitor statewide loads. It allows them to better manage their generating options.

Reason #6 A smart grid system will modernize our electric grid to improve economic and national security. (DOE-GRID 2030)

The request for stimulus funding was $63 million dollars total. Of that, about $9 million was for Dawson PPD. The Department of Energy (DOE) could fund up to 50% of our total request. For those utilities who know that smart grid services will be required in the near future, this is our way of possibly saving 50% of the cost by having the funds granted by DOE. Funding announcements will be made in mid to late October.

Thursday’s blog (What’s In It For Me) will tell our customers how a smart grid could directly affect them.

Gwen Kautz, Customer Service Manager
Dawson Public Power District

Talking WIND with Custer Power & NPPD

Instead of reading a blog today....listen! Public Power is your power!

If you build it, they will come....but who will pay?

In April, Ron Asche, Nebraska Public Power District’s CEO, addressed the Loup Power District Board of Directors and said transmission planning is a real and challenging concern. He said he believes if national renewable goals are to be met; a national energy transmission plan will have to be designed and implemented. “Finally, how is this going to be financed, and who will be ultimately responsible for the debt incurred in the development of this system,” Asche asked. “Will Nebraska ratepayers be asked to guarantee the debt, or will capital be available to private developers? (Columbus Telegram; Columbus, NE, April 23, 2009)

Transmission proponents are focusing on wind, though, because (currently) environmentally friendly projects sit better with the public. Nobody would say, ‘We want to build a transmission line for coal.” It's much better to talk about it being for wind. Supporters of wind power said the need for transmission capacity is real. How do we deal with the growing LOCAL opposition to building transmission lines?

In early March, Senate Majority Leader Harry Reid (D-Nev.) introduced a bill that would give the federal government authority to grant permits for new electric transmission lines, trumping states’ jurisdiction on the matter. The stimulus package allotted $11 billion dollars for transmission builds but regional grid operators say that at least $80 billion in new transmission infrastructure spending would be needed to get 20 percent of the eastern U.S.’s electricity from wind by 2024. (source: http://www.jcspstudy.org/)

Since electricity cannot be stored in large quantity, the transmission system must work 24 hours a day in tandem with the generation system to meet the needs of the growing demand for electricity. As with other components of utility infrastructure, siting and building transmission lines are very difficult.

Adding large transmission lines also requires state regulatory approval, which involves significant permitting, research and modeling data, environmental information, cost comparisons, analyses of various options, discussions of scenarios and criteria used in evaluation, and other information.

Everybody wants electricity, but nobody wants the transmission line in their back yard. Listen to NPRs “Building Power Lines Creates A Web Of Problems.”

Gwen Kautz, Customer Service Manager
Dawson Public Power District

National Public Radio Energy Education

National Public Radio (NPR) this week is running a 10-part series on energy, the utility industry and smart grid. “In its most basic form, the smart grid adds a computer cable to the electrical wire,” described an NPR announcer, noting the two-way communications capability to deploy data points all along the system and lets computers “manage the grid much faster and more efficiently than humans could.” Segments on the “Morning Edition” and “All Things Considered” radio programs plus published on the NPR website -- examine the costs, politics and other challenges of upgrading the country's power infrastructure including green generation, utility-scale energy storage and the grid.

Dawson Public Power District may or may not agree with the series points, but we think its important to provide the educational opportunity.

SOURCE: Smart Grid Today (http://www.smartgridtoday.com/)

Interestingly enough, both sides of the cap and trade proposal spout out facts that support their position. One would expect nothing less. So, who are we to believe? I admit I’m conservative, a lot more on the right than the left but I’m also cautious about believing EVERYTHING I read or hear regardless of the side.

Look at global warming. Here’s the only position to take on behalf of my utility: It doesn’t matter what we think, it matters what our customers think. According to a recent Nebraska survey, 30% of Nebraska electric customers think climate change is a very serious issue and 36% think it’s somewhat serious. Sixty-six percent should make utilities sit up and take note.

This is a large issue – and when large issues hit Washington D.C. – we get to see grandstanding. The question one has to ask, regardless of being on the right or the left – who BEST benefits from the cap and trade proposal?

Here’s where the $buck$ starts rolling….polluters (generating stations or other large industries) will be asked to pay fees to purchase permits which allow them to release a set amount of CO2 into the air. The idea is to get those polluters to change work processes to lessen CO2 emissions.

Those permits will be allocated by the federal government; then they will be traded on Wall Street. So our government gets a lot of money (in which they will likely reallocate these funds to other programs), traders and brokers will get millions, and our customers get to foot the bill by paying higher electric bills based on utilities needing to pass on those costs.

Senator Waxman (D-Calif) introduced a 648-page discussion draft on climate change legislation March 31. Surprise, surprise....while it applies to all emissions, regulation begins with utility compliance.

I am particularly fond of those people who believe that reducing CO2 emissions in the United States will have a profound impact on the entire world. It won’t. All it will mean is our customers get to pay higher electric rates without benefit of “SAVING THE PLANET.”

Oh sure, we get to claim “We’ve done our part.” Throw up your hands, walk away, and smell the coffee…it probably came from India and they have decided NOT to change anything per an April 13th article titled “India Rejects Calls for Emission Cuts.” in the Washington Post; N.p. All we will do is accelerate America’s economic decline because companies will relocate to China or India.

For the record, I’m inclined to believe that Nebraska’s legislative leaders do understand our position.

Gwen Kautz, Customer Service Manager

How Much Is That Doggie In The Window?

Dawson Public Power District sold 483,114,863 kilowatt hours in 2008 to customers in our service territory. Based on a formula that is derived from what we purchase from NPPD, our (2008) carbon footprint was 394,827 tons.

The question becomes….why do I care? I used a carbon footprint calculator online (you can find them all over the internet), and my family’s annual carbon footprint is approximately 44 tons give or take a ton or two.

If a carbon tax (in the form of a literal tax or a cap and trade program) is imposed based on proposals being discussed by the federal government, we could expect to see a significant increase in our residential electric rates because utilities must collect the tax which becomes an additional cost to the end use customer.

Lots of numbers have been thrown into the ball park…$20 per ton, $50 per ton, and higher. No one has discovered the secret formula that will be enough to pinch (force) those companies who are responsible for large CO2 outputs into finding economical ways to curb the CO2.

I’ll play ball. Quick math says 44 tons (my footprint) times $20 per ton equals $880 annually added to my current electric bill and at $50 per ton, I’m screaming because I just added a $183 tax per month to my bill. BUT….we won’t be taxed individually; this tax will be socialized across the country according to the output of the generators. That means those people who conserve electricity or use energy efficient appliances will pay for those customers who don’t.

Let’s socialize the tax across Dawson PPDs average annual carbon footprint. At $20 per ton, our cost of power goes up 36% which means the kwh price at your home went from 7.27¢ to 9.0¢. At $50 per ton, which is an 89% increase in wholesale power cost to us, your kwh price went from 7.27¢ to 11.45¢. Dawson PPDs average residential customer uses about 1,347 kwh per month. That’s a difference between $97.93 per month (no tax) and $154.28 ($50 per ton tax). Your residential bill went up almost $60 per month for the same energy consumption.

We know it’s important to reduce CO2 emissions. But we also know it has to be done in a balanced manner so that our customers are not socked with electric bills made huge by a carbon tax. We want you to know what the costs COULD BE when you hear politicians throwing out numbers like $20 per ton or $50 per ton.

The numbers I use are a literal tax on carbon output by our electric generators. To use the cap and trade approach, the people who will benefit most are the traders on Wall Street – making the middle man the place to be as “offsets” become a commodity. Do we really want commodity brokers controlling our electric bills? And do we really want our utilities becoming tax collectors for the federal government?

Gwen Kautz, Customer Service Manager
Dawson Public Power District

...

SO IMPORTANT, IT'S A BOARD RESOLUTION!

Dawson Public Power District's board of directors are working hard for our customers. They are very concerned about what effect a cap and trade system will have on our rates. So much so, they plan to pass a board resolution at the April 2009 meeting.

The resolution cites why Dawson PPD feels the way they do and what could happen if Congress passes a program like this. We will be sending this resolution to all of our congressional leaders. We encourage you to contact your elected representative!

If you would like to read the resolution, please click here: http://tinyurl.com/cvmqrx

Can we learn from the mistakes of others?

Push and shove, pull and poke, up or down…will anyone get it right? Our Congressional leaders are in disagreement about CO2 legislation – and what they decide could be the straw that breaks the camel’s back when it comes to regulating carbon dioxide.

In an environment screaming recession, people won’t stand for the word “tax” especially an energy tax, as part of the solution to reduce CO2. So hide it behind the words “Cap and Trade.”

A cap-and-trade plan is a tax in disguise and thankfully a number of Democrats and Republicans are starting to see that this proposal has serious defects. Rural utility systems have tried to point out these flaws for the past year. (See Glenn English’s dialogue with America below.) Using a cap-and-trade program is inefficient and costly – and worse yet – unpredictable.

I think the hardest part is that the people who will make these decisions truly believe they have the facts in front of them. They feel like they understand the problem. What I don’t think they understand is how far reaching a cap-and-trade program can be. They willingly admit “Oh, we know it will raise electric rates a little.” But folks, it won’t be a little. It will be a lot! Your electric rates could easily double!

Europe enacted a cap and trade program years ago. It isn’t working! Read this article: http://tinyurl.com/bb3exl

Now add another small fact worth considering. Let’s say…for the sake of agreement, all Americans get in this boat and chant the mantra “Save our Planet” and find a way to reduce CO2 in a cost effective, balanced approach. China has decided it is exempt from reducing C02. They say they should not have to reduce emissions caused by goods manufactured to meet demand elsewhere (from The Washington Post-March 17 2009). Did we gain a thing?

America responded (loudly) to President Obama’s promise that if you make $250,000 or less, you will not see a tax increase…..except he left off “unless you use electricity.” We can’t afford to get this wrong.

“Lawmakers may say they have plans to rebate some people so that everyone does not suffer, but it is not possible to craft a cap and trade plan that is perfectly offset by rebates. Just because a politician promotes a plan that is “budget neutral” for government does not mean it is “budget neutral” for American families. When politicians redistribute money, there will be winners and losers. The winners will be the politically well-connected groups and the populace as a whole will lose.” (Paragraph source: Institute For Energy Research)

Gwen Kautz, Dawson Public Power District

AMERICA is headed for an electricity crisis!

Increasing demand. Rising rates. CO2 reductions. Transmission overload.

If Americans want to keep electricity safe, reliable and affordable, Congress and America's rural electric utilities must work together.

Join the 222,500 American consumers who have sent over 1,609,000 letters and emails to elected officials asking tough questions about our energy future.

Please visit www.ourenergy.coop.



Urge Congress to work with public power districts to balance the response to renewables and clean energy --and your need for affordable, reliable electricity