In this issue

NPPD plans for future with efficiency and renewables funding

NPPD is providing partial funding through a grant to Ponca State Park, Neb., to build a guest cabin like this one with energy-efficient construction, lighting, heating and cooling controls and complete on-site waste disposal and treatment. (Photo by Nebraska Game and Parks Commission)

Things have changed for Nebraska Public Power District since it submitted its last integrated resource plan to Western—supply and demand, the economy, technology and public opinion, to name only a few. The next IRP, due in March 2008, will show how one utility is helping to lead the change, rather than fighting it.

As NPPD develops its IRP, the utility is also looking at expanding energy efficiency's role in meeting future demand. NPPD President and CEO Ron Asche said, “Many variables are included in this complex study; however, we are confident that from this study will come a continued and increased commitment to energy efficiency.”

That commitment was clear when the NPPD board of directors approved $482,000 for domestic energy research and application initiative projects at its August meeting. “These projects are just the beginning of NPPD's efforts to improve efficient use of energy and develop renewable energy in Nebraska," Asche stated in a press release on the decision. "The cleanest and least expensive kilowatt is one we do not have to generate."

"This is a great example of how a utility's budget and its IRP can interact to meet long-term goals," noted Western Energy Services Manager Ron Horstman. "This is exactly how power providers can benefit from IRPs." 

Getting ready for the future

Change, however, and not the required plan, is the main driver behind NPPD's investment, said NPPD Corporate Communication Supervisor Brenda Sanne. One of the biggest changes since the last IRP is growing concern about global climate change and how it might effect future electric generation. "The board of directors recognizes that coal-fired plants will be coming under more pollution control regulations," she said. "NPPD is preparing for that by increasing its commitment to energy efficiency and renewable energy."

 NPPD is also preparing for growth, as the utility estimates that its load will grow at more than twice the historical rate over the next six years. "It is mainly from the rapid expansion of the number of ethanol plants in Nebraska," said Sanne. "Nebraska recently became the second largest ethanol producer after Iowa, with the majority of the plants, on average, adding at least a 5- to 15-MW load."

An overall thriving economy, industry and business expansion, residential development and an increase in electric-powered irrigation are also contributing to that growth. Clearly, even positive change requires planning and preparation. 

Investing in awareness

Stepping up its focus on energy conservation, renewable energy and new energy technologies is part of NPPD's plan. The board allocated $256,000 from the $482,000 investment to promote a new compact fluorescent light program. "CFL programs are a great way to get residential customers thinking about energy efficiency," said Sanne.

NPPD’s CFL program consists of providing in-store coupons for $2 off a package of Energy Star CFLs, or $1 for a single light. The program will be offered through many chain retailers in the service territory, and to smaller stores by request, as well. Promotion for this event, scheduled for November and December, will be through newspaper advertisements, on the radio and posters. "After looking at all the options, the coupon promotion seemed like the most simple and cost-effective way to cover our service territory," said Sanne.

Another environmental education project, the Ponca State Park "Green Cabin," will receive nearly $33,000 to develop the first of several cabins planned. The “Green Cabin” project will use recycled and renewable building materials. Guests staying in the cabins will get first-hand experience with energy-efficient construction, lighting, heating and cooling controls and complete on-site waste disposal and treatment. Ponca State Park gets about 600,000 visitors annually.

The Nebraska Energy Assistance Network program, a cooperative effort among utilities to promote low-cost, but under-used energy-efficiency measures, will receive $18,000 from NPPD. NEAN provides targeted households with "Energy Efficiency Starter Kits" containing two CFLs, a light-emitting diode nightlight, low-flow shower head, temperature cards and an energy efficiency booklet. NPPD has previously provided in-kind support to NEAN outreach to senior households. This allocation will fund kits for low-income families.

Adding more renewables

As important as energy efficiency is to NPPD, diversifying fuel sources must also be part of the plan, Asche continued. “Adding more wind-powered generation will help NPPD achieve our goals for supplying a greater portion of our customers’ energy needs from renewable generation resources," he said.

NPPD has earmarked $75,000 to buy a new portable, towerless wind monitor to collect data on potential sites for wind farms. A separately funded initiative will give NPPD 10 more non-portable anemometers. "We learned several years ago through deliberative polling that some of our customers support NPPD developing wind," said Sanne. “NPPD’s board and management are taking proactive steps today that will help put us in a better position from a generation resource standpoint should federal or state renewable energy portfolio standards be adopted for Nebraska in the future.”

The deliberative polling results were a consideration in NPPD’s investment in the Ainsworth Wind Energy Facility, which supplies 60 MW of power. NPPD has submitted a Clean Renewable Energy Bonds request for $32,960,000 to fund additional wind turbines at Ainsworth. The proposed, 15-MW expansion would boost the facility's output to its nameplate capacity of 75 MW. 

Two more CREB applications would add more than 5 MW of renewable energy to NPPD's portfolio. One for $3,387,000 would build two new, advanced-design wind turbines at Springview, Neb., replacing two older turbines recently retired at that location. The other application is requesting $9,200,000 for a hydroelectric facility in the coal-fired Gerald Gentleman Station water discharge canal.

Water efficiency and more

The proposed hydroelectric facility is in addition to two water-efficiency research projects NPPD is funding through the Nebraska Center for Energy Sciences Research at the University of Nebraska-Lincoln. The projects focus on cooling water used by power facilities and water used in corn production. The investment in the CFL program notwithstanding, NPPD expects irrigation control to continue to be a big source of demand reduction. "NPPD still has a large agricultural customer base," said Sanne, "and the NCESR partnership and NPPD’s technical solution experts are great resources for providing technical assistance to these customers."

NPPD launched a partnership with the NCESR last year. The center receives funding of $1 million per year for a five-year period from the utility to research energy,water efficiency and renewable energy initiatives. The funding has supported 14 research projects and four energy education projects so far.

In addition to the research partnership with UNL, a lengthy list of smaller projects shows that NPPD has an eye on the big energy picture. NPPD has earmarked $30,000 to conduct an engineering analysis and develop a conceptual design for a modular, scalable photovoltaic demonstration project. An Electric Power Research Institute gas turbine bio-diesel demonstration will receive $30,000 to determine the feasibility of using bio-diesel from domestically grown oil crops like soybeans to power gas turbines.

While a $40,000 project to convert a Ford Escape hybrid into a plug-in hybrid may not reduce electricity demand, the demonstration project can point the way to consumers’ reducing their personal transportation costs by switching to electricity as a transportation fuel in the face of rising gasoline prices. Electricity as a transportation fuel is estimated to cost about 75 cents on a comparative basis to the price of a gallon of gasoline.

As Asche pointed out, NPPD's commitment to renewables and energy efficiency is nothing new, and the utility is not waiting to complete its IRP to move forward. The final plan and several of the projects will take time to develop, but, "Stepping up our commitment to energy efficiency with initiatives like the CFL campaign…is something we are starting now.”

The beauty of planning is that you don't have to wait for the future to happen—you can get ready for it today.