Legislative Policy

Nebraska Power Association
2008 Legislative/Regulatory Policy Statement

The Nebraska Power Association (NPA) was established in 1980 to provide a forum for the Nebraska electric utility industry to discuss issues and provide services to all utilities in the state. NPA is a voluntary organization that represents all segments of Nebraska's publicly owned electric utility industry.

NPA members recognize that the NPA is the primary forum for attempting to resolve intra-industry disputes or disagreements. NPA supports the coordination of all public power legislation and resolutions through the NPA. NPA intends to develop positive legislative recommendations for power industry-related legislation as needed that are consistent with objectives to ensure adequate and reliable supplies of reasonably priced power.

The following 2008 Legislative Policy Statement has been developed and adopted by the NPA Board of Directors on behalf of its members. The NPA has outlined its support or opposition to specific legislation in the following categories:

Category  
Clean Air 
  • NPA supports New Source Review (NSR) reforms undertaken by the EPA to clarify the regulation and provide regulatory certainty. NPA supports further NSR reforms that would provide additional clarification of the NSR regulations in future years.
  • NPA supports Nebraska's adoption of the EPA's Clean Air Mercury Rule, including the model cap-and-trade program and allowance allocation methodology.
  • NPA supports balanced multi-pollutant control legislation which achieves real environmental results in an efficient and cost effective manner and allows for the continued supply of reliable reasonably price power.
  • NPA supports Nebraska's continued exclusions from the Clean Air Interstate Rule (CAIR) based on EPA's original assessment that Nebraska does not significantly contribute to particle and/or ozone problems in downwind areas.
  • NPA supports reasonable and cost-effective controls on sources that are determined to be subject to Best Available Retrofit Technology (BART) under the Clean Air Visibility Rule. NPA opposes additional controls on sources that do not significantly impact the visibility at Class I areas.
Clean Water Act
  • NPA supports reasonable EPA and State water related permits with limits and provisions that provide for both protection of the environment and for the reliable, cost effective operations of power plants. For example, as a result of the continuing drought and changes in the Missouri River Master Manual by the Corps of Engineers, permit flexibility could be essential to help ensure an adequate power supply to meet the needs of Nebraska's electric consumers.
  • NPA opposes expanded designation of "waters of the United States."
Climate Change
  • NPA supports continued research into the science of global warming and development of cost-effective technologies to reduce or mitigate greenhouse gas emissions from the electric power industry.
  • NPA supports economy-wide solutions to reduce greenhouse gases which, for the electric industry, focus on early technology development, expansion of energy efficiency and renewable technologies, and a diverse generating mix, including expanded nuclear power and assuring that clean coal-based generation remains viable.
  • NPA opposes any international-agreements to limit greenhouse gas emissions unless such agreement includes participation by developing countries and does not result in serious harm to the U.S. economy, consistent with the conditions and provisions of Senate Resolution No. 98 adopted June 12, 1997.
Coal Freight
Rates
  • NPA supports legislation and/or regulations that promote competition and eliminate artificial/monopolistic pricing structures within the railroad industry to ensure the lowest coal freight rates for all shippers. NPA also supports reliability standards for the railroad industry to ensure timely and reliable deliveries of coal to coal-fired power plants to ensure electric reliability.
Communications
  • NPA supports removal of any and all barriers to public/consumer-owned electric utility ownership of infrastructure to be utilized in partnerships with telecommunications carriers or other private entities for the provision of telecommunications and information services.
  • NPA opposes any attempt to create barriers limiting interstate or intrastate communications between utilities.
  • NPA opposes any attempt to prohibit or limit the use of Nebraska's publicly-owned electric utility infrastructure for the deployment of broadband over powerline (BPL) service.
Economic
Development 
  • NPA supports the promotion of economic growth and development in Nebraska. Nebraska's low cost based electric rates represent a major competitive advantage and economic incentive for development in Nebraska.

Electric Industry
Study
  • NPA supports the "condition certain" approach to restructuring the electric industry in Nebraska, adopted by the LR 455 study of public power, Neb. Rev. Stat. §70-1001 LB 901 (2000).
Eminent Domain
  • NPA supports existing eminent domain authority and opposes modifications which weaken the condemnation authority of public utilities.
Endangered
Species Act
  • NPA supports modifications to the Endangered Species Act to include assurance that adequate peer reviewed data is utilized in the designation of threatened and endangered species and requires that recovery actions are developed and implemented with field tested and peer reviewed data utilizing a proper cost benefit analysis.
Energy
Conservation &
Efficiency
  • NPA supports programs to encourage public power entities and electric consumers to install or promote the installation of high‑efficiency and economically affordable electrical equipment and appliances through rate incentives or favorable tax treatment.
  • NPA supports cost-effective energy conservation programs and incentives that will help reduce electricity demand and defer the need for new generation.

Federal Energy
Regulatory
Commission

  • NPA opposes FERC having jurisdiction over retail rates of public power.
  • NPA supports FERC's continued jurisdiction over mergers, IOUs bundled and unbundled services, and market power abuse situations.
  • NPA supports FERC's goal of workable competitive wholesale markets. NPA encourages FERC to take a regional focus in examining wholesale markets and tailoring solutions which properly recognize state law requirements for public power entities.

Federal
Preference

  • NPA supports the retention of preference rights for public entities and cooperatives in the allocation of federal power.
  • NPA opposes an open auction of the federal power marketing administrations to the highest bidder or a mandate requiring federal power to be sold at market prices. If Congress determines to sell the PMAs, NPA supports only the sale or transfer of the PMAs to current preference customers.

Hazardous
Waste
Disposal

  • NPA supports adoption at the state level of legislative and regulatory requirements for the handling of hazardous materials, which are no more stringent than federal requirements, to avoid duplicate and burdensome compliance activities.
  • NPA supports interstate cooperation and planning for the safe, orderly, and environmentally responsible disposal of solid and hazardous wastes.
Hydroelectric
Power
  • NPA supports the development of hydroelectric power resources and the inclusion of hydropower in the definition of renewable resources.
  • NPA opposes restrictions on hydroelectricity such as the imposition of surcharges on electricity generated at federally owned and operated hydroelectric facilities.
Load
Management
  • NPA supports the development and implementation of load‑management programs to defer the need for development of more costly power resources.
Local
Control
  • NPA supports the continued control of the state's publicly owned utilities by elected or appointed boards.
Nuclear Power 
  •  NPA supports the cooperation of federal, state and local officials in ensuring that stringent safety precautions and monitoring are undertaken to ensure compliance with all federal regulations for the generation of nuclear energy, the transport and storage of spent nuclear fuel, and disposal of low-level radioactive waste from Nebraska's two nuclear plants.
  • NPA supports recognition of the benefits of nuclear power in contributing to reductions in greenhouse gases.
  • NPA supports efforts to provide the safe, efficient, cost­effective disposal of low-level radioactive waste.
  • NPA supports Congressional action, which officially designated Yucca Mountain, Nevada, as the Nation's high-level radioactive waste repository.
  • NPA supports adequate Congressional funding appropriations to move forward expeditiously the licensing and operation of the Yucca Mountain facility.

Plug-In Electric
Hybrid Vehicles

  • NPA supports reasonable programs to promote the development and deployment of plug-in electric hybrid vehicles (PEHV) as well as continued research into advanced battery technologies.

Public
Ownership

  • NPA supports continued public ownership and local control of Nebraska's electric power systems. NPA will aggressively oppose any attempts to privatize individually or all of Nebraska's Public Power Systems.
Rates
  • NPA supports the Cost of Service concept for retail pricing of electricity, and the evaluation of alternative pricing in the event of a deregulated, restructured and competitive electric utility market in Nebraska.
Renewable/  
Alternative
Energy
  • NPA supports the research and development of technically, economically, and environmentally feasible alternatives and renewable energy resources including voluntary green pricing programs. NPA further supports efforts to ensure full funding of the federal Clean Renewable Energy Bonds (CREB) and Renewable Energy Production Incentive (REPI) Programs and/or the development of alternative federal and state incentives, such as tradable/transferable tax credits, to achieve parity with tax credits available to investor owned utilities.
  • NPA supports the inclusion of both new and existing hydroelectric generation in the definition of renewable resources.
  • NPA opposes federal or state mandates that would impose minimum levels of alternative energy capacity, such as a Renewable Portfolio Standard.
  • NPA supports net metering legislation for customer-owned renewable energy generation that provides an offset for the energy produced while equitably compensating the utility for the remaining fixed costs and customer metering laws should provide for the safety of the public and utility employees and ensure the integrity of the distribution system.
Security-National
General Security  
Section
  • NPA supports enhanced infrastructure and security in cooperation with federal, state, and local resources based upon prudent and cost-effective measures.
Self-Insurance  
Pooling 
  • NPA supports the principle of allowing the state's public power entities, along with other political subdivisions, to participate in self-insurance pools if such participation would provide sufficient liability protection and be cost-effective for ratepayers.
Tax-Exempt
Financing
  • NPA supports the removal of private-use restrictions on utstanding tax-exempt debt issued for generation and transmission facilities, so that Nebraska's public power providers can make maximum use of their electric facilities to the benefit of Nebraska's ratepayer owners.
Tax Exemptions
  • NPA supports continuing exemptions from sales and use taxes on utility fuels, transactions between utilities, and services, as well as the exemption from sales tax on construction labor for generation, transmission, and distribution facilities.
Taxes
  • NPA opposes arbitrary taxes or other charges on the generation, infrastructure or use of electricity.
Transmission
Access
  • NPA supports broad access to transmission for utility-to-utility transactions. This includes non-discriminatory transmission tariffs, non-discriminatory service and recovery of legitimate, prudent and verifiable stranded costs associated with open access. NPA supports participation in Regional Transmission Organizations (RTO's) by all transmission owners with legal authority to participate in such organizations.
Water Resources
  • NPA opposes any operations of the Missouri River under the new master manual that threatens the generation of electricity from steam generation plants located along the Missouri River in Nebraska or the neighboring region and requests the Army Corps of Engineers provide certainty that adequate water flows necessary to operate Missouri River Basin power plants will be provided by operations of the Missouri River. In addition, NPA requests the Corps operate the Missouri River hydroelectric system in a manner that minimizes costs and maximizes peaking power availability.
  • NPA supports the recommendations of the 2003 Nebraska Water Policy Task Force as implemented in LB 962, Neb. Rev. Stat. 77-101, et. al. (2003) and further - requests the legislature to provide the funding necessary to implement the task force recommendations.