Public Power

Brief History of Public Power

George W. Norris. Nebraska Senator (1913-1943). George Norris believed government should serve the needs of the ordinary citizen and electricity was a right of the people. The Nebraska senator helped create the Tennessee Valley Authority, the Rural Electrification Act, Nebraska’s Unicameral, and the state’s system of public power districts. Norris understood that electricity can be more reliable, less expensive, and better managed when owned and operated by the people it serves. His dedication to improving the lives of America’s working men and women is recognized with every farm light, production line, and computer operated today.

Public power in Nebraska. The state’s first electric department was formed by the city of Crete in 1887, about the same time farmers out west were devising ways to store water for their irrigation needs. By the early 1930s, several hundred municipal utilities were in place, 42 private electric companies were owned by five holding companies, and the construction of several hydropower projects was under way. In 1933, the Nebraska Legislature created the state statutes that govern public power districts, and between 1934 and 1946, investor-owned utilities were absorbed by public power districts making Nebraska the only totally public power state in America.

Legislative Resolution 455. In 1996, the Legislature’s Natural Resources Committee began a two-phase study to examine deregulation of the electric industry, as well as the status and performance of Nebraska’s public power system. The study determined there was no reason for retail competition in Nebraska due to the low electric rates state consumers enjoy. The study led to the passing of Legislative Bill 901 on April 11, 2000. LB 901 establishes a “condition certain” approach to maintaining the structure of the state’s public power system. The legislation directs the Nebraska Power Review Board to monitor the electric industry and annually report whether or not Nebraskans would benefit from retail competition. The Power Review Board submits a report to the Governor and Legislature each October and - as of 2005 - saw no reason to initiate any change to state policy with regards to retail competition. These annual reports can be found at www.nprb.state.ne.us.

The Benefits of Your Power

Low cost. Local control. Reliability.
More than 2,000 community-owned electric utilities serve approximately 43 million people in the United States. One hundred and sixty-nine of these entities are in Nebraska, creating a foundation that makes Nebraska the only totally public power state in America.

With extremely high transmission reliability and rates approximately 32 percent below national average, Nebraska’s utilities put customers - not stockholders - at the forefront of decisions.

Whether approving funding for equipment for greater reliability, supporting efforts to increase Nebraska’s economic growth, or setting rates for various customer classes (e.g. residential, commercial, industrial, irrigation and/or wholesale), public power boards and councils consider the current and future needs of their constituents.

That is the advantage of local control—a key difference between public and private utilities. Every resident of Nebraska can provide input into how his or her local electric system is operated.

In addition, public power customers/owners are friends, relatives or neighbors of the customer service representative, board director, power plant operator, or line technician who serves them. That means public power is more than a business. It’s an integral part of the “good life” Nebraskans enjoy.

Reliability

Partnerships deliver reliability.
Nebraska’s public power system is a complex network of facilities,services, people and expertise. The transfer of power from generation facilities across transmission equipment and distribution systems is a carefully controlled process conducted on both an instantaneous and long-term basis. Communication among utilities is crucial to Nebraska’s ratepayers who expect their power to stay on and rates to remain low.

Some utilities generate electricity at power plants and transmit it across the state’s high-voltage transmission grid. Others distribute power to farms, rural towns, or metropolitan areas via lower-voltage transmission lines, and all work together to keep hundreds of thousands of miles in power lines operating reliably.

While it is impossible to control Mother Nature, Nebraska’s public power utilities strengthen their dependability through mutual aid agreements. Utilities assist one another in storm restoration, system improvements and transmission projects to serve all customers.

Proactive maintenance programs, line refurbishments, and system reinvestments keep power lines in operable condition. Vegetation management programs keep power lines clear of trees. These measures assure a stable supply of electricity accompanies every flip of a switch.

Diverse Generation

Variety reduces volatility.
Nebraska’s power portfolio includes a diverse mix of resources including coal, nuclear, natural gas, diesel/oil, wind, hydropower, and methane. This mix offers public power utilities the flexibility to draw upon a variety of resources - geographically dispersed throughout the state - at the most economical times.

Nebraska’s coal plants have been among the lowest- cost facilities in the country and supply the greatest percentage of the state’s electricity needs. They use low-sulfur coal from neighboring Wyoming which has less impact on the environment.

The state’s public power utilities operate nine hydropower facilities along Nebraska’s waterways, while also purchasing
power from the Western Area Power Administration, a federal agency. Two nuclear power facilities offer a stable supply of electricity without emissions; five wind generation facilities across the state take advantage of this economical energy source; and more than 40 communities throughout the state are equipped with diesel generation units for supplemental power.

Meanwhile, public power continues to gain experience with new methods of generation—such as biomass and methane—from landfill and livestock waste.

Environmental Stewardship

Environmental stewardship statewide.
Whether it is protecting avian or endangered species, fortification of wetland habitat, or voluntary measures to reduce waste and air emissions, Nebraska’s public power utilities and their employees strive to preserve the state’s quality of life.

Nebraska’s utilities are committed to providing customers economical and reliable generation while recognizing the environmental impacts. Efforts are made to utilize equipment that reduces air emissions, and new construction incorporates
Best Available Control Technologies for emission reduction. Wastewater outflow for power plant cooling is also used by some to minimize the use of groundwater.

Many recreational facilities, associated with hydropower facilities throughout the state, are operated by public power utilities or in conjunction with Nebraska’s Game and Parks Commission. Canals, dams, and reservoirs provide fishing and boating activities, along with camping, golfing, biking, and seasonal hunting opportunities. Islands and sand pits developed and managed by public power utilities benefit least tern and piping plover survival. Conservation strategies and protective measures contribute to the balance necessary for utilizing the state’s water resources and supporting the wildlife that may inhabit them.

The state’s utilities sample, measure, and report greenhouse gases and air emissions, as well as water and soil conservation measures to regulating agencies. Their efforts to reduce, reuse and recycle minimize the generation of wastes and provide both environmental and economic benefits. Public power also regularly works with such organizations as the Nebraska Department of Environmental Quality, Keep Nebraska Beautiful, Children’s Groundwater Festival, and PowerDrive™ to help fulfill their promise of environmental stewardship.

The People Behind the Power

Nebraskans serving Nebraskans.
The positive relationship between Nebraska’s electricity consumers and the employees who serve them demonstrates the strength of “public” power. Public power employees work for their friends, relatives, and neighbors who - like them - are owners of their local utility. The total number of jobs in Nebraska associated with the public power sector is estimated to be more than 25,000. Public power jobs alone total approximately 8,000.

Public power employees and their families enjoy being a part of their communities. They coach and mentor Nebraska’s youth, participate in city and civic organizations, churches, recreational associations, and serve on environmental, governmental or industry-related task groups. They know the value that public power provides the state and are proud to work for an industry that contributes to Nebraska’s “good life.”

Because the production, management, and delivery of electricity throughout the state is both comprehensive and complex, careers in public power cover a wide range of interests. Engineers, line technicians, plant operators, mechanics, drafters, and coal handlers are just a few of the occupations associated with the state’s public power system. Service representatives, account managers, economic development consultants, accountants, information technology specialists, and environmental professionals are also employees of public power utilities.

Partnerships between utilities and Nebraska’s community college system and state universities create opportunities for younger generations through internships, educational workshops and related training initiatives. A majority of those employed by Nebraska’s public power utilities grew up in the state and reinvest their lives into the fabric of an industry that is community oriented and future focused.

A shared commitment.
Nebraska’s energy generators and distributors collaborate daily to ensure that the electricity needs of all Nebraskans are met. Through the Nebraska Power Association, they share a commitment to public power.

Nebraska’s utilities are controlled by publicly elected public power boards, rural electric cooperative boards, and city council representatives. Public power board directors and council members understand their most important responsibility is to serve the needs of their constituents.

These governing representatives set rates, budgets, and service standards. Regularly scheduled meetings of utility boards and councils are open to the public and customers they serve. Customer input is a cornerstone of their decisions. Surveys, phone calls, and face-to-face feedback are popular methods used to foster public interaction.

While Nebraska’s public power industry is ultimately directed by the Nebraska Legislature through state statutes, the Power Review Board reviews retail and wholesale service area agreements, approves construction of new, electric generation facilities, and oversees the state’s long-range power supply plan.

This long-range plan is developed by Nebraska’s utilities that work together to determine generation resources and transmission upgrades, restore power disruptions, and address customer service opportunities.

American Public Power Association
On the national level, the American Public Power Association (APPA) is the service organization for the nation's more than 2,000 community-owned electric utilities that serve more than 45 million Americans. It was created in 1940 as a non-profit, non-partisan organization. Its purpose is to advance the public policy interests of its members and their consumers, and provide member services to ensure adequate, reliable electricity at a reasonable price with the proper protection of the environment.