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behind your

How NPPD meets Nebraska’s electric needs

Last October, NPPD crews responded with mutual aid after a tornado hit the city of Wayne.

page 4Neighbors Serving Neighbors

A Higher Calling

©

PaGe 2 | NEBRASKA PUBLIC POWER DISTRICT — Always there when you need us

FinAnciAl Support < BEHIND YOUR OUTLET BEHIND YOUR OUTLET > EnErGY EFFiciEncY

LED incentive lightens energy costsPonder this?

What if you could cut your lighting energy consumption by 80 percent, not have to

think about changing a light bulb for up to 15 years and save money every year on your energy bill. That’s exactly what John Mohning of York did, and he is now basking in energy savings. He took advantage of the new EnergyWiseSM LED residential lighting incentive offered by NPPD. Mohning wanted to change out the fluorescent shoplight fixtures in a storage area. “They flickered, made my eyes ache, and produced a lot of heat,” Mohning says. With the help of an EnergyWise LED incentive, Mohning switched out 20 fluorescent tube bulbs with 10 LEDs. The change was an eye opener. “They turn on immediately and I love the quality of light,” he said. Through the end of the year, NPPD and participating local electric utilities will provide qualified customers a one-time, $5 credit on their electric bills for every Energy Star®-qualified 60-, 75-, or 100-watt LED bulb purchased. Up to $50 per account will be available.

NPPD’s Energy Efficiency Program Manager Cory Fuehrer explains: “By investing in energy efficiency, NPPD helps customers use energy more effectively, thus providing more ‘value’ for their energy dollars.” Fuehrer encourages customers to contact NPPD or their local public power provider and take advantage of the many EnergyWise incentive programs offered. For more information about EnergyWise incentive programs and energy-saving tips, visit nppd.com/save-energy.

I purchased the LEDs, filled out the form, attached the receipt and turned it in. It doesn’t get any easier than that.”

Contributing tocommunity coffersUtility crews respond to power outages

day or night and in all kinds of weather. That’s a given. But did you

know Nebraska’s pubic power utilities energize communities in other ways? As part of the public power model, utilities make significant contributions to the state’s economy every year. Millions of dollars in the form of lease payments, in-lieu-of-tax payments, gross revenue tax, and general fund payments are made to local and state governments. In fact, cities, towns and counties served by NPPD received approximately $37.2 million collectively in lease and in-lieu-of-tax payments in 2013. For example, lease payments from NPPD go into the city of Scottsbluff’s general fund. “General fund services include police and fire, parks and public works,” City Manager Rick Kukkahn explains. “Payments from NPPD help provide basic human services and – I would argue – a higher quality of life than there

would be without them,” he says. Pawnee City Mayor Duane Westing recognizes the revenue received from NPPD has a “huge impact” on the town. “By including NPPD’s payments with other monies the city receives, we’re able to do some things in our community that are needed which we would be unable to do without these additional dollars,” he comments. “People have told us they really enjoy our wonderful little park and other community facilities, and we can only do that because of the money the city receives from NPPD,” Westing says. NPPD’s payments go into Kearney’s general fund where, ultimately, they help hold down taxes, says City Finance Director Wendell Wessels. “(The payment) all goes into the general fund through which we finance such things as police, fire department, parks and library,” Wessels says. “We use it for property tax relief,” he points out. Wessels estimates that without NPPD’s payments,

the typical homeowner in Kearney would pay approximately three times more in city-assessed property taxes each year. Payments to communities are made each year by Nebraska’s public power utilities. In total, more than $100 million in taxes or in-lieu-of taxes was paid in 2013. Promoting growth and sustainability of communities and rural areas — that’s a responsibility public power gladly upholds.

www.nppd.com | PaGe 3

save some green by makingthe switch to LeD lightingAn average home has more than 30 light fixtures and typically consumes between

$140and

$400 per year in electricity.

Upgrading 15 insufficient light bulbs to LEDs could save about

$50per year in electricity.

90% of a traditional incandescent bulb’s energy is given off as heat.

LED bulbs use up to

80%less energy but produce the same amount of light as incandescent bulbs.

John Mohning, NPPD employee and customer

2013201220112010200920082007200620052004TOTAL

$27,091,000$25,773,000$24,332,000$21,970,000$19,965,000$18,663,000$18,317,000$17,480,000$17,622,000$16,724,000$207,937,000

2013201220112010200920082007200620052004TOTAL

$10,130,000$9,673,000$9,211,000$8,333,000$7,576,000$7,088,000$6,966,000$6,589,000$6,636,000$6,281,000$78,483,000

Payments made to NPPD communities help enhance quality of life

what are in-lieu-of-tax payments?Payments made to compensate for local tax revenue lost because of not-for-profit, tax exempt status.

Payments made:

what are lease payments?Payments made based on amount of energy sold using community-owned facilities, e.g., lines, transformers, etc.

Payments made:

Wendell Wessels,Finance Director for theCity of Kearney, says payments made by NPPD help keep property taxes down in his community.

LEDs last up tolonger than incandescent bulbs.

20x

PaGe 4 | NEBRASKA PUBLIC POWER DISTRICT — Always there when you need us www.nppd.com | PaGe 5

BEHIND YOUR OUTLET > coVEr StorY coVEr StorY < BEHIND YOUR OUTLET

October storm bookendsNebraska It wasn’t winter, and it wasn’t spring, but early October delivered each of those two seasons at the same time, created numerous power outages and damaged NPPD’s electric system on both ends of the state. On Oct. 4, 2013, blizzard-like conditions struck the Scottsbluff and Chadron areas while, at about the same time, strong thunderstorms producing tornadoes ripped through northeast Nebraska. One twister devastated the east side of Wayne, causing extensive damage to the city’s airport and industrial sector. Another hit a power line and took out 20 transmission structures between Hoskins and South Sioux City. NPPD line crews responded to both events, joining with wholesale utilities throughout the state to get power back on for customers impacted by the bizarre weather. “This is a perfect example of how cooperation between public power districts can help restore power after a disaster like this,” said Tim Sutton of the city of Wayne. To view a heartwarming video showcasing the grit of Wayne residents as they rebuild after the disaster, visit nppd.com/waynetornado.

NPPD crews help wayne utilities restore power last october.

lines and fuel depots for operations in Iraq and Kuwait. In 2007, he became an ammunition and ordinance specialist with the Army, completing more than 100 combat resupply drops by air. “Following this service, I rejoined the Air National Guard and am currently serving as an aircraft fuel systems specialist working on KC-135 tanker planes in Lincoln,” he said. “Through the military, I’ve had the chance to serve people at home through humanitarian efforts like Hurricane Katrina,” said Hodson. “The National Guard is ready at a moment’s notice to go overseas or assist with matters close to home, such as flooding or tornadoes. I am always willing to answer the call to duty.” So is Tilden Local Manager Jeremy Poulsen, who has been a volunteer firefighter in the Tilden area for four years and counting. “Small towns like Tilden only have voluntary groups of men and women to

Chances are, you’ve witnessed the one finger wave or cordial head nod while passing a

fellow Nebraskan on the road. This state is full of friendly, caring people who view those

near and far as their neighbors. And, as neighbors, we are called to help one another.

take care of various emergency situations that can and will arise at any time,” said Poulsen. “It is my civic duty to help. Our main job in any emergency is to get our equipment and vehicles where needed and to work as a team, whether it be driving trucks back and forth to supply water, running fire hose where

needed or helping victims of vehicle accidents.”

Poulsen most recently assisted with the Battle

Creek fire Jan. 26 that devoured acres in the area due to dry grass and wind gusts topping 60 miles-per-hour. The stories may be different, but the message is the same! We are here to help

each other out.

clockwise from top: Duane Aksamit is one of many NPPD employees who serve on a local volunteer fire department. The Cooper Nuclear Station Fire Brigade vigilantly trains to protect employees and residents near the plant. Platte county relay for Life is championed by NPPD’s Chris Cook. Lyn Hodson captured this picture while deployed in afghanistan.

Neighbors

ServingNeighbors

Hard work and perseverance are values Nebraskans share, and that’s why our jobs barely scrape the surface of our commitment to you. Like the customers we serve, NPPD employees actively participate in community events like United Way or Habitat for Humanity. Still others assume leadership roles within city councils, chambers of commerce and school boards. Countless more devote time to volunteering, whether as a local YMCA basketball coach, first responder or blood donor. Take Columbus Administrative Assistant Chris Cook, for example. Cook has been an advocate for the Relay For Life for 17 years.

Why? In one word: hope. Having lost her sister to cancer after a five-year battle in 2004, the organization is near and dear to her. Event Chair for the 2014 Platte County Relay For Life, Cook has helped raise more than $1.5 million dollars for the American Cancer Society to fund research and more, providing endless amounts of hope to others touched by the disease. Then, there’s Gerald Gentleman Station Mechanical Technician and Air National Guard Sergeant Lyn Hodson. Hodson is one of 300 active or veteran soldiers at NPPD who has served and continues to serve his country and community. His military career started with the Navy in 1986, when he began four years of active duty

through Operation Desert Storm as a boatswain mate, responsible for supervising personnel in his ship’s maintenance duties. An active drilling reservist on three ships during seven years in the ‘90s, Hodson turned to a new career setting up supply

information with customers. The one-half hour segment each Friday morning features Nelson, as well as a variety of topics and guest speakers. “Our customers really want to be heard,” said Nelson. “When we informed them of proposed federal legislation threatening coal as a fuel source, more than 1,700, or 40 percent of our entire customer base, sent the EPA a post card with their thoughts.”

With several bills introduced this state legislative session challenging the structure of

public power, Nelson said education with customers and the public needs to be ongoing. “Most folks these days are too young to remember the reason public power was

created or witness the electrification of rural Nebraska,” said Nelson. “It’s important we share our vision for the future with key stakeholders, which includes our state legislators.”

Located in northeast Nebraska is the small town of Laurel, population 964. What differentiates Laurel from other small

communities is, while some small towns are struggling, Laurel is continually looking for opportunities to grow and improve. It’s “The Best Little Town in Nebraska.” Luke Virgil, the city of Laurel economic development coordinator, has worked directly with NPPD’s economic development department and his local electrical provider Cedar Knox Public Power on a business retention and expansion survey called Synchronist Business Information System. “The information system gathers company-specific data and helps participants identify, analyze, and report trends and changing needs of businesses in Nebraska’s economy, helping to bring in and retain businesses,” said Virgil. During this process, local businesses are interviewed and follow up

assistance is provided, such as energy audits. NPPD assists communities and utility partners with consultation training, educational services and strategic planning assistance to sustain local economic growth and diversity, to increase employment opportunity, and expand the tax base in Nebraska. “NPPD works through referrals, trade shows, and industry relationships to help retain and bring business to Nebraska communities,”

states NPPD Sr. Economic Development Consultant Mary Plettner. “We are a partner in the state’s future.” Visit econdev.nppd.com to learn more about the advantages of doing business in Nebraska.

PaGe 6 | NEBRASKA PUBLIC POWER DISTRICT — Always there when you need us

cuStoMErS < BEHIND YOUR OUTLET

www.nppd.com | PaGe 7

BEHIND YOUR OUTLET > EconoMic DEVElopMEnt

NPPD and Cedar Knox Public Power District have been instrumental in providing input and information about economic development, and have had a big impact on bringing these businesses to Laurel.”

Luke Virgil, Economic Development CoordinatorCity of Laurel

BIGin this little Nebraska town

Business is

With an average of approximately one customer located every two square miles, one would think General

Manager Rick Nelson and his team at Custer Public Power District would be challenged to get a consistent message to their customers at home or work. But despite a sparse population and vast land area served, Nelson and his team have developed an informed customer base willing to help the utility address numerous energy-related issues and concerns on a moment’s notice. “Communicate often and early with your customers and key stakeholders — even when there are no ‘hot button’ items — and you will find a lot of folks willing to step forward and support you on policy matters, when needed, because they already understand your business,” said Nelson. This grassroots approach has earned Custer accolades from many industry groups. Yet Nelson is quick to point out while recognition is nice, it’s just part of the job. “We owe it to our customers to let them know the value they get from their public power utility because, frankly, they own it,” said Nelson. “We don’t get a lot of people attending our monthly Board meetings, so one way we can be more transparent is to find ways of getting information to them.” More than five years ago Nelson turned to the local radio station as one way to share

as Nebraska’s largest rural public power district in terms of geography, custer’s service territory encompasses more than 8,000 square miles in north central Nebraska. this is nearly four times the size of the state of Delaware.

We owe it to our customers to let them know the value they get from their public power utility because, frankly, they own it.”

Rick Nelson, General ManagerCuster Public Power District

Going green, one block at a time

CUSTOMER sPotLiGht

An open ear keeps utility’s customers energized

customers to participate in its wholesale green energy program. The utility bought 10, 1,000- kilowatt-hour blocks and divided them into one hundred, 100-kwh “Going Green” blocks for interested customers to purchase. So far, a total of 79 blocks have been sold. “While the physics of electricity do not allow utilities to send renewable energy kilowatts directly to the customer, this program gives those participating a way to help show their support for these types of projects,” Nelson said. NPPD offers a similar program to its retail customers. To learn more, visit nppd.com/greenclub.

By the end of 2014, approximately 94 wind turbines will be dotting the landscape in Custer County. Construction of a second wind farm in Broken Bow is slated to be completed this fall. The new facility will join an adjacent wind farm already in operation. Besides being a budding wind farm community, Broken Bow is also the headquarters for Custer Public Power District, one of the first Nebraska Public Power District

top: Agrex, Inc. groundbreaking. Middle: Mural painted on downtown business. Bottom: Laurel BioComposite ribbon cutting.

examples of business growth in Laurel over the last few years: GiaNt a&M – moved from California to Laurel in 2007. Currently employing 20, they are a leading manufacturer of logoed automotive products. Strong family ties along with lower cost electrical rates are among the top reasons for the move to Nebraska.

Laurel Biocomposite, LLc – hosted a ribbon cutting in September 2013. BioComposite developed a process which converts distiller grain into Bio-Res™ pellets, a product that will substitute for some portion of plastic resins in certain thermoforming applications. Currently employing seven, the company looks to expand within the first quarter of 2014.

agrex – A full-service agricultural trading company and one of the major exporters of U.S. feed grains has announced plans to build a 2.6 million bushel BNSF Railway shuttle loading facility. Groundbreaking was held in June of 2013, with plans to be fully operational in the fall of 2014. Once operational, Agrex will employ approximately seven people.

BEHIND YOUR OUTLET > ABout uS

This publication was produced by Nebraska Public Power District.For more information, call 402-563-5990 or go to www.nppd.com.

we want to stay connected with you.What’s on your mind? Stay connected

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We valueyour opinion!Take a short survey and you could win a $50 GROW Nebraska gift card OR roadside emergency kit.

To take the survey, vist nppd.com/surveyMust be 18 to take survey. Random drawing to be held May 1, 2014. Winners will be notified by email. NPPD employees and their families are not eligible for the drawing.

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• to date, nearly $2.5 billion has been invested in wind energy for Nebraskans.

• Wind energy investments have quadrupled since 2010.

• Nebraska utilities have self-imposed renewable energy goals and are meeting or exceeding them.