2008 News Releases

News Releases

December 2008

November 2008

October 2008

September 2008

August 2008

July 2008

OPPD Announces Appointments

The Omaha Public Power District has announced the following appointments:

Deborah J. Matthews has been appointed to the position of Shift Manager, Fort Calhoun Station Plant Operations Division effective December 28. Ms. Matthews joined OPPD in 1983 and most recently served as a loaned Shift Manager, Fort Calhoun Station Outage Department. She holds a Bachelor of Science degree in Electrical Engineering from the University of Nebraska and a master’s degree in Business Administration from the University of Phoenix.

Raymond R. Reno has been appointed to the position of Shift Manager, Fort Calhoun Station Plant Operations Division effective December 28. Mr. Reno began his career with OPPD in 1989 and most recently served as a loaned Shift Manager, Fort Calhoun Station Integrated Work Management Department. He holds a Bachelor of Science degree in Industrial Technology from Southern Illinois University.

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OPPD Customers Using Electricity at Record Pace

The temperature outside may be going down, but the amount of electricity being used by customers of the Omaha Public Power District is going up. On Monday, December 15, the District set an unofficial record when electricity usage peaked at 1,664.4 megawatts between 6 and 7 p.m. That eclipses by a wide margin the old winter season mark of 1,573.2 megawatts set on April 30, 2007. The previous record was driven by unusually high air conditioning usage due to unseasonably warm weather in the District’s service territory.

Normally, electricity usage is lower during OPPD’s winter season, which runs from November through April. The summer season runs from May through October. The official record for the summer season is 2,271.9 megawatts, set on July 19, 2006.

Officials say the rising usage of electricity in winter shows the need for the new coal-fired power plant being built south of Nebraska City. During summer, OPPD can generate additional electricity using natural gas. In times of very cold temperatures, natural gas isn’t available to OPPD because it is needed to heat homes.

The figures from last Monday’s record must still be verified. The official figure is expected to be available next month.

OPPD serves more than 340,000 customers in thirteen counties in southeast Nebraska.

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OPPD Board Approves 2009 Operating Plan, Wind Purchase

As customer demand for electricity grows, the Omaha Public Power District Board of Directors took action today to ensure the District’s ability to meet that demand in 2009, including more wind energy. The wind purchase and other actions are in the largest Corporate Operating Plan in the District’s history. The Board approved it today as well as the 2009 Capital Expenditure Plan.

The measures approved by the Board project operating revenues in the coming year to reach $999.6 million. That is almost 26 percent higher than the current year. The figure includes retail sales which are expected to top $773 million and off-system sales, excluding Nebraska City Station Unit 2, which are projected to exceed $136 million.

The money will be needed to meet operation and maintenance expenses that are projected to increase by almost 32 percent in 2009 compared to 2008. That includes substantially higher costs for coal and coal transportation as announced last September and the additional expenses of operating Nebraska City Station Unit 2 which is nearing completion. To help pay for the higher coal and rail costs, the Board also approved the previously proposed Fuel and Transportation Cost Adjustment. The adjustment will add 0.86 cents per kilowatt-hour to each customer’s bill. For the average residential customer, that increase will mean an additional $8.77 a month. Even with the increase, OPPD’s rates will remain approximately 36 percent below the national average and 13 percent below the regional average.

Projected capital expenditures for the year total $239.8 million. The figures include expenditures to support a proposed power uprate at Fort Calhoun Nuclear Station to provide more emission-free electricity, completion of the ongoing construction at Nebraska City Station Unit 2, and the ongoing expansion and improvements to the District’s existing production, transmission and distribution systems.

The Board authorized management to execute long-term agreements with the Nebraska Public Power District for a total of 38 megawatts of wind-generated electricity. The electricity will come from wind farms being built in the Bloomfield, Nebraska, area. It is not part of the 80 megawatts of wind-generated electricity for which OPPD requested proposals earlier this year. The District is now studying the proposals it received on that request and intends to make a decision by early April.

In other action, the Board also:

• approved a resolution to express the District’s intent concerning Corporate Operating Plan expenditure reimbursement from tax-exempt financing.
• approved the Board’s meeting schedule for 2009.
• authorized management to award a contract for $288,500 to Harold K. Scholz Company for electrical equipment for the substation located near 114th and Giles Road.
• approved charters for the Board’s standing committees and created at least one new standing committee.
• approved compensation adjustments for President and Chief Executive Officer W. Gary Gates and Vice President Charles P. Moriarty.

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New Reward Fund Aimed at Nabbing Copper Thieves

The Omaha Public Power District is joining forces with area Crime Stoppers, local law enforcement, and neighborhood residents to increase security at District substations in an effort to apprehend thieves responsible for recent intrusions and copper thefts. The effort includes establishment of a new reward fund providing up to $1,000 for information leading to the arrest of the person or persons responsible.

Copper thefts have become a serious issue for utilities across the nation, including OPPD. So far this year the District has experienced about $136,000 in losses. The losses include material and damage to District property as well as the cost of repairs.

Beyond those losses, District officials fear the situation is creating dangerous safety hazards that could even be life-threatening. Thieves often target copper ground wires and neutrals in the substations. Without those wires, equipment may no longer be grounded, increasing the possibility of electric shock to OPPD employees entering the substations and also to the general public which may be in the vicinity. In addition to increasing the potential of causing injuries, the thefts also heighten the possibility of service disruptions for customers. Officials say creation of a reward fund underscores the seriousness of the problem.

The District believes that asking the public to assist by keeping an eye out for those who are endangering the public’s safety and health can play a key role in catching those responsible. In addition to a reward for information the District, in conjunction with law enforcement officials, has sent letters to neighborhood substation watch groups about the problem.

The letter asks recipients to urge their members, as well as other individuals who live and/or travel near local substations, to remain on the lookout for any suspicious activity. Anyone who notices anything that appears out of the ordinary is asked to report it immediately to law enforcement officials. At least one arrest has already been recorded as a result of such actions by an alert member of the public.

Meanwhile, OPPD says it has taken a number of other steps to increase security at its substations, especially those that have been hit most frequently. Those steps include increased patrols and surveillance operations, additional security lighting and installation of monitoring equipment such as security cameras.

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OPPD Tests Plug-In Hybrid Electric Vehicle

Imagine driving to and from work every week using little or no gasoline, but still being able to drive long distances when you want. That’s the promise of a Plug-In Hybrid Electric Vehicle (PHEV). The Omaha Public Power District has become the first utility in the state to see if the new vehicles can deliver on that promise.

The Plug-In Hybrid is much like regular hybrid vehicles, but has more battery capacity that allows it to travel about 30 miles without using any gasoline. When the car runs down the battery to a certain level, the gasoline engine starts and powers the car until the batteries can be charged again. The charging is done overnight from a normal house electrical outlet.

While a number of car makers have promised Plug-In Hybrid vehicles in a year or so, the vehicle is not yet mass produced. OPPD’s new car is a Toyota Prius that has been converted into a Plug-In Hybrid. Studies have shown that by lowering gas consumption, air emissions are lower, even when the vehicles are charged with electricity generated by fossil fuel-powered plants.

The point of the conversion for OPPD is to get an understanding of how well it really performs in the local climate, said Marc Nichols, the Division Manager-Sustainable Energy and Environmental Stewardship. Most testing has been done on the west coast until now.

"This is an opportunity to look into the future and see how the car works in snow and frigid weather and to anticipate the impact on our system," said Mr. Nichols. "The electric industry is set to become a fuel provider for the transportation industry. A driver will be able to plug in the car at night, get up next morning and drive to work primarily on electric power.''

As auto makers prepare to begin Plug-In Hybrid production late next year or in 2010, OPPD is running ahead of the industry. After evaluating a half-dozen companies that convert hybrids to the new technology, the District bought a standard Prius and purchased a conversion kit from HyMotion.

Operating on the 187-pound battery fitted in the spare tire well, this car travels mostly on electric power at speeds below 25 miles per hour said Steve Anderson, Manager-Transportation & Construction Equipment. The “all-electric” range is in the neighborhood of 30 miles.

When travelling at speeds above 25 miles per hour, climbing hills or accelerating, this Plug-In Hybrid needs a boost from its regular engine, Mr. Anderson said.

Early next year, OPPD expects to acquire a second Plug-In Hybrid that uses a different battery and control program. That unit is expected to provide all electric drive at higher speeds and acceleration demands.

The District, which will continue testing of the two Plug-In Hybrid Electric Vehicles through 2009, also plans to display the cars at schools and special events to give the public a look at tomorrow's technology. It has long supported electric vehicle technology, starting the Power Drive electric vehicle competition for high school students ten years. OPPD now sponsors Power Drive with Nebraska Public Power District. Dozens of high schools and even some post-secondary schools from Nebraska and other states participate in the program each year.

Editors note: Photos of the vehicle are available on our website at: http://www.oppd.com/AboutUs/NewsEvents/NewsroomPhotos/index.htm

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OPPD Names New Division Manager - Planning and Budgeting Services Division

November 13, 2008

Ms. Kapustka began her career with OPPD as an Accounting Clerk in 1984 in the Corporate Accounting Department. Since then, she has held a variety of positions including Accountant and Senior Financial Analyst as well as Manager Treasury and Risk Management. She has served as Executive Assistant to the Chief Financial Officer since October 2005.

Ms. Kapustka holds a Bachelor of Science degree in Finance from the University of Nebraska at Omaha where she also earned her master’s degree in Business Administration.

She and her husband, Stan, have three children.

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OPPD Sells Additional Bonds

At its regular monthly meeting, the Board of Directors voted to authorize the District’s management to issue and sell up to $21 million of Separate Electric System Revenue Bonds, Nebraska City 2, 2008 Series A. The bond issue is the third and final one in a series issued by the District to finance the participants’ shares of construction costs in NC2.

Seven other public utilities in Nebraska and elsewhere will share with the District in the electrical generation produced by the new plant which is scheduled to go online next spring. Of those seven, two of them – Nebraska Public Power District and Falls City Utilities – have already paid their respective shares of the third installment for NC2 construction costs.

The bond issue is smaller than the successful sale of Electric System Revenue Bonds recently announced that took place on October 29. In total, OPPD received orders amounting to nearly $300 million for the $105 million bond issue. The overwhelming demand for bonds meant that many orders could not be filled. About 53% of that bond issue was sold to retail investors which were given a priority in the bond sale. Institutions purchasers accounted for the balance.

In other action, the board also:

• approved pension adjustments for current retirees, surviving spouses, joint and survivorship and long-term disability recipients.
• approved the appointment of a new Chief Financial Officer for the District.

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OPPD Names New Chief Financial Officer

Mr. Easterlin will be responsible for guiding the finance and treasury activities that are essential to maintaining OPPD’s financial stability and the district’s ability to provide low-cost electricity to its customer-owners.

Mr. Easterlin joins OPPD from Colorado Springs Utilities which he joined in January 2002 and where he most recently served as Chief Planning and Finance Officer beginning in May 2005. Prior to that, he served as General Manager of Financial Services and General Manager of Financial and Accounting Management.

Other professional experience for Mr. Easterlin includes a twenty year stint at South Carolina Public Service Authority, Santee Cooper. Santee Cooper is the state’s largest producer of electricity, supplying power to about 40 percent of South Carolina. He served in a variety of positions including Manager of Corporate Analysis and Pricing, Director of Financial Planning, Group Leader Financial Planning, Financial Analyst, Accountant Asset Accounting and Senior Technical Associate at the Jefferies Generating Station. He also served three years at Duke Power Company’s McGuire Nuclear Station where he began his career. While at Duke Power he was employed as a Nuclear Chemistry Specialist.

“We are fortunate to have Mr. Easterlin join OPPD to fill a vital position within our organization,” said OPPD President W. Gary Gates. “OPPD has managed over the years to maintain one of the highest financial ratings in the nation for a public utility due in large part to the quality and expertise of our financial management team.

“We expect that will continue with Mr. Easterlin as we move forward, facing the difficult question of how to fund the kinds of significant investments that must be made in OPPD plant facilities and operations in the future.”

Mr. Easterlin holds a bachelor’s degree and a master’s degree both in Business Administration from Charleston Southern University. He also holds an Associate degree in Chemical and Nuclear Engineering Technology from Trident Technical College.

He and his wife Ann have two children.

Mr. Moriarty, whom Mr. Easterlin will replace, has been with the Omaha Public Power District for more than forty years and will remain on board until early next year. Mr. Moriarty joined OPPD in 1967, starting in Customer Accounting and eventually served in Corporate Communications, Planning, Fuels and Finance where he held a number of managerial positions. He was named Division Manager of Finance in 1994 and in 2006 was named Chief Financial Officer and Vice President of Corporate Services – Financial.

Mr. Moriarty guided the District’s finances during one of the most extensive capital construction periods in its history. Projects successfully financed during this period included major upgrades to Fort Calhoun Nuclear Station and construction of Nebraska City Station Unit 2 as well as other significant investments in OPPD’s transmission and distribution system.

Earlier this year, OPPD became one of only four public utilities in the nation to earn an Aa1 bond rating from Moody’s Investors Service while also earning an AA rating from Standard and Poor’s.

Among the reasons cited for the high bond ratings were the District’s stable financial and risk management, continued growth in its customer base and the utility’s strong financial team led by Mr. Moriarty.

Recently, despite turmoil in the nation’s economic markets, OPPD successfully sold $105 million in Electric System Revenue Bonds to investors looking for high quality bonds.

In addition to his position with OPPD, Mr. Moriarty is a past president of Financial Executives International, the Greater Omaha Community Action Agency and a veteran of the U.S. military having served fifteen months in Vietnam in 1968-69.

Mr. Moriarty and his wife Michele have two children and five grandchildren.

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OPPD Sells Bonds

It took a while for some calmness to return to the bond market, but once it did, it only took five hours for the Omaha Public Power District to sell $105 million in Electric System Revenue Bonds. The sale took place on October 29. The OPPD Board had authorized Vice President and Chief Financial Officer Charles Moriarty to exercise his best judgment on when to enter the market. The bond issue originally had been scheduled for September, but the turmoil on Wall Street and in international financial circles had frightened most investors from the bond market. Fewer potential investors meant less competition for the bonds and any bond offering would be more expensive for the issuer. OPPD decided to wait to enter the market until conditions improved.

A window of improvement occurred in late October as a significant number of retail (individuals) and institutional (banks and insurance companies) investors came back to the market looking for high quality bonds. OPPD’s bonds with their high ratings - - Aa1 from Moody’s Investor Services and AA from Standard and Poor’s - - were the highest quality bonds being issued in the market and it was exactly what investors were looking for.

In total OPPD received orders amounting to nearly $300 million for the $105 million bond issue. The overwhelming demand for bonds meant that many orders could not be filled. About 53% of the bond issue was sold to retail investors which were given a priority in the bond sale. Institutions purchasers accounted for the balance of the sale.

“By having so many orders for our bonds, we were able to negotiate lower costs to OPPD,” said Mr. Moriarty. “The high bond ratings and timing of our sale in the market translates to savings to OPPD customer-owners over the life of the bonds.”

The bonds will mature between 2018 and 2039. The interest rate on the bonds ranged from 4.60 percent for the shorter maturities to 5.50 percent for the longest maturity. Co-Senior Managers for the bond issue were Citi and Wachovia.

OPPD has another smaller issue going to market this month. That bond issue is expected to be in the $21 million range and is for participants in the Nebraska City 2 project. Interested investors should consult with their brokers.

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OPPD Announces Appointments

The Omaha Public Power District has announced the following appointment:

Randall P. Hodgson has been appointed to the position of Manager of Radiation Protection, Fort Calhoun Station Plant Operations effective October 5. Mr. Hodgson began his career with OPPD in 1986. He most recently served as Work Week Manager. He holds a Bachelor of Science degree in Applied Science and a Technology degree in Nuclear Engineering from Thomas Edison State College. He also holds an Associates of Applied Science degree in Radiation Protection from Metropolitan Community College.

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OPPD Plans for Contingencies

With the next refueling and maintenance outage for Fort Calhoun Nuclear Station just over a year away, the Omaha Public Power District Board of Directors took action to reduce the possibility of unnecessary additional downtime for the plant during the outage.

The board today authorized management to negotiate and enter into contracts with Westinghouse Electric Company LLC to provide services for contingency repairs to the plant’s reactor vessel nozzles. Primary coolant enters and exits the reactor through the nozzles. The nozzles are scheduled to undergo required inspections during the 2009 refueling outage.

The new contracts would mean the Monroeville, Pennsylvania, company could, if needed, start repairs immediately.

The board also today authorized management to revise the District’s Electric Rate Schedules and Services Regulations. The changes are necessary to reflect current operations. Included in some of the new provisions would be the ability to add rates for private outdoor lighting when requested by customers between rate actions, elimination of credit card payments by large customers for electric service payments and to allow the transfer of unpaid electric service bill balances to accounts where the debtor owing them is now residing or liable. The rate revisions will take effect January 1, 2009, and are not connected to the recently announced proposed rate adjustment due to increases in the cost of coal and rail transportation. The board will vote on that at its regular meeting in December.

In other action, the board:

• authorized the District to submit to the Southwest Power Pool its power transmission rates and costs for inclusion in its Open Access Transmission Tariff. The District executed a membership agreement with the Southwest Power Pool last month which will become effective upon final approval by the Federal Energy Regulatory Commission.
• authorized an amendment to OPPD’s contract with Offutt Air Force Base to reflect the increased cost of purchasing and delivering electricity to Offutt from the Western Area Power Administration effective January 1.
• approved implementation of OPPD’s new Identity Theft Protection Plan to detect, prevent and mitigate identity theft.
• approved awarding a contract to Watts Electrical Company of Lincoln for $275,790.33 to provide the labor to install electrical equipment at a substation near Blair, Nebraska.
• approved awarding a contract to Nielsen Construction of Omaha in the amount of $271,972.68 to repair a sound wall at a substation at 93rd and Pacific Streets.
• approved authorization to issue and sell the 2008 Series A Electric System Revenue Bonds. It also gave authorization to proceed with preparations to sell up to $51 million of the Separate Electric System Revenue Bonds (Nebraska City 2) 2008 Series A on a negotiated basis.

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OPPD Begins Study of Wind Proposals

Omaha Public Power District managers now are studying twelve proposals submitted to provide electricity generated by the wind. The District’s first ever Request for Proposal (RFP) for wind energy closed at the end of the day last Friday, October 10. The RFP asked for a total of up to 80 Megawatts (MW) of generating capacity and the electricity that goes along with that capacity. OPPD would like to enter into an agreement to purchase the power, with the electricity flowing onto the grid no later than 2010.

“We have been pleased with the number of proposals received,” said Marc Nichols, the Division Manager-Sustainable Energy and Environmental Stewardship. “Now we must perform the due diligence to make certain we have the best proposal for our customer owners.”

No decision can be made until the district conducts a thorough evaluation of the proposals, according to Mr. Nichols. With the proper proposals, OPPD could enter into an agreement for wind-generated electricity by next April.

Any project or projects selected could substantially increase the district’s wind energy resources. OPPD currently owns its own wind turbine with the capacity of 0.66 MW and has a power purchase agreement for 10 MW from a wind farm near Ainsworth, Nebraska.

OPPD customers have voiced support for using more renewable resources like wind to generate the increasing amounts of electricity they are requiring.

OPPD was instrumental in a four-year study of Nebraska’s wind potential

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OPPD Sees the Cost of Equipment and Material Going Up

September 18, 2008

The skyrocketing cost of coal and rail transportation aren’t the only financial challenges facing the Omaha Public Power District. Today’s action by the OPPD Board of Directors illustrates one of those challenges.

The Board today approved a contract for three new substation power transformers at a total cost of nearly five million dollars. That figure has at least doubled from what the District paid for similar transformers just four years ago.

The contract with Delta Star, Incorporated, of San Carlos, California, is for $4,988,922 and includes purchase, delivery and installation of two 75 MVA transformers and one 56 MVA transformer. Two transformers are needed for a new substation being built near Blair. The third will serve as a spare. Suppliers say higher prices for steel, copper and aluminum are among the reasons for the higher costs to the district.

In other action, it officially became eight in a row today. That is the number of times the Omaha Public Power District has won the J.D. Power Award, placing the utility among the best in the nation in providing top quality and reliable customer service. The award is based on a national survey of more than 35,000 residential customers by the California marketing firm, J.D. Power and Associates. The award was presented to the Board during its regular monthly meeting.

The survey, conducted annually, measures customer satisfaction with electric companies in the areas of power quality and reliability, price and value, billing and payment, corporate citizenship, public communications, image and customer service.

In other action, the board also approved:

• selling a small tract of land at 180th and Q to Douglas County for the widening of the intersection. The purchase price for the 0.17 acre of land was $20,245.
• a resolution to thank and recognize OPPD employees for their storm restoration efforts this year, including those in the aftermath of the Millard tornadoes and the powerful June thunderstorm which was the second most destructive storm in the District’s history.

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OPPD Announces Appointment

September 18, 2008

The Omaha Public Power District has announced the following appointments:

John R. Tucker has been appointed to the position of Supervisor of EMS Operations, System Planning and Work Management Division effective September 7. Mr. Tucker began his career with OPPD in 1982. He most recently served as a System Analyst Engineer. He holds a Bachelor of Science degree in Electrical Engineering from Iowa State University.

Richard G. Haug has been appointed to the position of Manager of Integrated Work Management, Nuclear Asset Management division effective September 21. Mr. Haug joined OPPD in 1982. He most recently served as Manager of Radiation Protection. Mr. Haug holds a Bachelor of Science degree in Chemistry from the University of Nebraska – Omaha.

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Coal and Rail Contracts Prompt OPPD to Propose Increase for 2009

September 9, 2008

The Omaha Public Power District today announced that it is recommending that a Fuel and Transportation Cost Adjustment be implemented for all customers effective January 1, 2009. The adjustment would add just less than 1 cent per kilowatt-hour (kWh) of usage to all customers’ bills. For the average customer who uses about 1,000 kWh per month this will mean an extra $8.73 on his or her monthly bill.

“We are mindful of the effect any increases have on our customers,” said OPPD President and Chief Executive Officer W. Gary Gates. “We assure you this was not a step that we wanted to take, however we had no choice.”

Mr. Gates referred to new five-year contracts recently negotiated for coal supply and rail transportation for coal. Although the District had anticipated that the costs of those contracts would increase, the bids were much higher than expected. Final bids increased the cost of coal and transportation by approximately $107 million per year compared to previous contracts. OPPD personnel have taken a number of steps to reduce the impact of those contracts. For example, converting OPPD’s fleet of rail cars to all-aluminum cars and purchasing a substantial amount of coal on the spot market have reduced the annual impact on the new contracts to $97 million, with further efforts underway.

“In simplest terms, this cost adjustment would not be occurring if not for these dramatic and unprecedented increases in coal and transportation costs,” said Mr. Gates. “We cannot realistically absorb such a huge expense without passing along these increased costs to our customer-owners.”

Mr. Gates vowed that the District would continue its ongoing efforts of belt-tightening and looking for substantial budget reductions in operations to go along with similar cuts achieved in recent years.

OPPD currently has two coal-fired plants that operate around the clock, with a third nearing completion and scheduled to go online in spring 2009. For the last three years, those plants have provided 68 percent of the District’s generation for what now services nearly 340,000 customers. To operate those facilities, coal and coal transportation have typically accounted for approximately 15 percent of the District’s electricity costs. With these new contracts, coal and transportation will account for about 25 percent of our electricity cost.

As many utilities across the nation report they are experiencing even more dramatic cost increases, even with the new cost adjustment, OPPD’s overall prices proposed for 2009 will remain 14 percent below the regional average and 37 percent below the national averages based on the latest available figures from the U.S. Department of Energy.

The OPPD Board of Directors is scheduled to receive the proposed cost adjustment in November, with action scheduled for its regular monthly board meeting in December. As proposed, the adjustment would take effect on January 1, 2009, and appear as a line item on customer statement bills.

Answers to Questions

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OPPD Shops the Wind Market

The proposal would substantially increase the district’s wind energy resources. OPPD currently owns its own wind turbine with the capacity of 0.66 MW and has a power purchase agreement for 10 MW from a wind farm near Ainsworth, Nebraska.

“Our customers have told us they would like to see us produce more electricity from renewable resources like the wind,” said OPPD President and CEO Gary Gates. “We are working to make that happen with this RFP.”

OPPD was instrumental in a four-year study of Nebraska’s wind potential and supported new Nebraska legislation that gives communities the ability to partner with wind developers. These community partnerships can take advantage of federal tax credits for wind energy that are unavailable to public power districts like OPPD.

“Public power has a disadvantage because of the way the federal government subsidizes renewable energy,” said Mr. Gates. “By entering into contracts like this, we hope we can provide the renewable energy our customers want at prices they can afford.”

OPPD hopes it can enter into one or more of the power purchase agreements by April 1, 2009.

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OPPD Prepares New Bond Issue to Total Over $100 Million

August 14, 2008

The Board of Directors today approved authorization for senior management to proceed with preparation to sell up to $105 million of the 2008 Series A Electric System Revenue Bonds on a negotiated basis. The issuance will raise funds for capital expenditures called for in the District’s 2008 Corporate Operating Plan. The 2008 Series A Bonds will be sold on a negotiated basis through a group of local and national investment managers and will emphasize the retail market with specific attention to Nebraska and Midwest investors.

At the same time, the Board approved a contract for the construction and replacement of an Arbor Line Bridge to be used for increased coal transportation by rail to the Nebraska City Station. Located northwest of the Highway 2 Bridge over the Missouri River, this Arbor Line bridge was reconstructed in 1926 and last saw improvements in 1967. Coal traffic over the bridge is already carrying maximum loads. Those loads will increase when Nebraska City Station Unit 2 becomes operational in 2009.

To build a replacement bridge, the Board approved a contract with L.G. Barcus and Sons, Inc., of Kansas City, Kansas, for $1,775,507. 

In other action, the Board also:

• approved the Engineer’s Certification and authorized management to negotiate and award contracts for the equipment and equipment installation services for the Fort Calhoun Station Extended Power Uprate Project.
  
  
• authorized management to revise customer service charges for such things as opening an account, reconnection, special disconnects, field collections, use of OPPD poles and special meter readings effective January 1, 2009 to reflect changes in the cost of service.
  
  
• approved a contract with FreightCar America of Chicago for $15,418,559.52 for the purchase of 252 rapid discharge type aluminum coal cars and to sell 252 existing steel rapid discharge type coal cars owned by OPPD.
  
  
• rejected all bids and authorized management to negotiate and enter into an acceptable contract for labor to construct a new 161 kilovolt transmission line.

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August 8, 2008

The Omaha Public Power District will conduct its annual test of the siren alert system around the Fort Calhoun Nuclear Power Station on Wednesday, August 20, 2008.  All radio-controlled sirens located within a 10-mile radius of Fort Calhoun Station will sound for a full three minutes sometime between 9:00 a.m. and 10:00 a.m. Fort Calhoun Station is located about 19 miles north of Omaha and just outside of Blair, Nebraska. Because this is only a test, no action by the public is required.

The siren system is designed to alert those who live or work within 10 miles of Fort Calhoun Station in the unlikely event of a serious accident at the generating plant. The test is conducted to ensure the system is working properly.  If an event were to occur, the sirens would sound to signal the public that people should tune to the local Emergency Alert System (EAS) radio station for official information and instructions.  The designated EAS radio station in this area and primary source of information from Nebraska and Iowa authorities is KFAB, 1110 on the AM dial. 

Anyone noticing a siren malfunction during the test on Wednesday, August 20, is asked to call (402) 636-3747 or write the Consumer Relations Department, Omaha Public Power District, 444 S. 16th St. Mall, Omaha, NE 68102-2247.

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Meanwhile, work on the plant itself has reached the 93 percent mark of completion. Startup and testing activities already have started, which will allow OPPD to target a commercial operation date in the spring of 2009.  Nebraska City Station Unit 2 is being built to provide electricity to OPPD and seven other public utilities in Nebraska and elsewhere in the midlands.

OPPD will own and operate the plant and use half of its 663 Megawatts (million watts) of electrical generation.  The other utilities have long-term contracts to purchase the remaining portion of the plant’s generating capacity. The plant is being built by Nebraska City Power Partners, which has over nine hundred workers currently on site.

The public utilities purchasing power from the plant on long-term contracts are Nebraska Public Power District, Nebraska City Utilities, Falls City Utilities, City of Grand Island Utilities Department, City of Independence (Missouri) Power & Light, Missouri Joint Electric Utility Commission, and Central Minnesota Municipal Power Agency.

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The Omaha Public Power District and the Neighborhood Center last night announced a program aimed at conserving energy and saving money for residents.  The Energy Efficient Neighborhood/Community Designation will be given to neighborhoods or communities whose residents reduce their energy use by installing new technology or changing how they use energy.

The program was announced at a special launch at the Morton Meadows neighborhood annual picnic Tuesday night. Morton Meadows will be the first to try to attain the designation by cutting its energy use by 25 percent.  That size reduction would save residents over a half-million dollars each year and also prevent 7,000 tons of carbon dioxide emissions. 

A pilot study of Morton Meadows conducted by the Neighborhood Center last year found that simple home improvements could reduce energy use by 25 percent in most neighborhood homes.  Those improvements include proper insulation and properly sealing the home and its ducts.

Morton Meadows residents came together to develop a Neighborhood Energy Action Plan (available at www.unomaha.edu/energysavers). The plan includes an education and outreach campaign for wise energy use and working with businesses to receive bulk discounts on energy-efficient products and home improvements.  Residents will need to document the energy-efficiency changes they make in their homes.

Morton Meadows will be the first neighborhood to try for the designation. Morton Meadows is located between Leavenworth and Center Streets, 42nd to Saddle Creek.

There are three levels of efficiency a neighborhood or community can attain; silver, gold and platinum.  If the neighborhood or community meets the criteria for any of the levels, OPPD and the Neighborhood Center will designate it an Energy Efficient Neighborhood or Community.  Other neighborhoods and communities in OPPD’s service area are encouraged to apply to become an Energy Efficient Neighborhood or Community by contacting Garry Ruliffson at OPPD at 402-636-3735.

The Neighborhood Energy Efficiency Program is supported by the Neighborhood Center, with funding from OPPD as part of its Sustainable Energy initiative, and administrative support from the University of Nebraska at Omaha.

The Neighborhood Center is a community-based, neighborhood-driven organization administered by the University of Nebraska at Omaha.

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OPPD Sees Post-Storm Challenges, Opportunities

August 1, 2008

While the electricity is back to homes and businesses following the June 27 storm, Omaha Public Power District workers have a number of tasks yet to be accomplished to get its system back to normal. One of those is checking, repairing and replacing hundreds of street lights damaged by the winds. 

Additional crews have been hired to assist OPPD street lighting employees, who have been working 60 hour weeks to bring light back to a number of streets.  Since the storm, crews have repaired or replaced nearly 1,600 street lights.  Much work remains, but managers estimate the streetlights damaged by the storm will be repaired by the end of September.

Other work includes replacing temporary repairs that were put in place during the storm to make them permanent. These repairs would include poles that were badly damaged and had to be stubbed. That is where workers place and secure a new pole adjacent to a damaged pole and return later to retrieve the damaged pole. Badly leaning poles might need to be straightened, wire restrung, and hardware replaced and repaired that was damaged but did not fail.

OPPD is planning on calling in additional contractors to help with all of this work, which will free up its workers to handle scheduled and emerging work.

Many of the damaged street lights were damaged by falling trees.  Reports indicate the high winds severely damaged the tree canopy in the area.  If there is a silver lining to this, OPPD sees an opportunity for homeowners to replace felled trees with ones that will not only provide shade and beauty, but also keep power in neighborhoods more reliable.

Tree limbs are one of the major reasons for outages and electrical service interruptions each year.  With the right tree in the right place, the impact of a wind storm on electrical service can be greatly reduced.  Additionally, tree limbs growing into overhead lines can create dangerous conditions for people on the ground. 

OPPD has a number of recommendations on planting in an area where there are overhead power lines.  First of all, no tree should be planted directly under a power line.  If planting within ten feet of a power line, residents should plant trees that mature at a height of less than 30 feet… such as Dwarf Fruit trees, Redbud, Dogwood or Crab Apple trees. 

If the distance is 25 feet to 50 feet from a power line, trees that mature to a height up to 45 feet are recommended. This includes trees such as Russian Olive, Black Hills Spruce or Ornamental Pear trees.

Taller trees should be planted at least 50 feet from power lines. This includes such trees as Red or Sugar Maple, Oak, Hackberry and Pine.

Residents should also be careful when it comes to planting large flowering shrubs which should also be located a safe distance from power lines.

OPPD’s Arboretum, located near 108th and Blondo in Omaha, can show homeowners and landlords which trees work best in which locations.

More information on the proper planting of trees and the types of trees that work best near power lines can be found at OPPD’s website. Other available material online includes information on OPPD’s tree trimming practices, tree promotion program, tree growth regulators and links to related web sites.

Before digging a hole to plants or shrubs, customers must call Diggers Hotline of Nebraska (344-3565 in the metropolitan area, 1-800-331-5666 statewide).

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The Omaha Public Power District has announced the following appointments:
 
Shon W. Bourke has been appointed to the position of Manager of Safety Training, Safety Division effective July 13. Mr. Bourke began his career with OPPD in 1990. He most recently served as a Field Supervisor Substation Construction.

Michael W. Shaw has been appointed to the position of Shift Supervisor, Production Operations Division effective July 13. Mr. Shaw joined OPPD in 1984. He most recently served as a Unit Operator. He holds an associates degree in Plumbing, Heating and Air Conditioning from Southeast Community College in Milford.

Roger D. Garfoot has been appointed to the position of Supervisor Projects, Information Technology Division effective July 13.  Mr. Garfoot first joined OPPD in 1989 and most recently served as a Software Engineer. He holds a Bachelor of Science degree in Electrical Engineering from Kansas State University, as well a master’s degree in Business Administration and one in Computer Science both from the University of Nebraska at Omaha.   

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OPPD Wins Eighth Consecutive J.D. Power Award

July 18, 2008

The results are in and for the eighth consecutive year customers of the Omaha Public Power District have placed the utility among the best in the nation when it comes to providing top quality and reliable customer service.

J.D. Power and Associates, a global marketing and information services firm based in California, released the results of its 2008 Electric Utility Customer Satisfaction StudySM yesterday. In announcing its findings, the firm says the study ranked OPPD “highest among midsize utility companies in the Midwest.”  The firm defined midsize utilities as those serving between 125,000 and 499,999 residential customers.

The study is conducted annually and measures customer satisfaction with electric utility companies by examining six key factors. The factors include power quality and reliability, price and value, billing and payment, corporate citizenship, public communications and image and customer service.

“We truly appreciate this recognition from our customers and from J.D. Power and Associates,” said OPPD President Gary Gates.  “As a company, we continually try to provide our customers with a reliable product as affordably as possible, and our employees work very hard to make that possible.  At the same time, our efforts are aided by great support from our customer-owners, and we’re thankful for that support.

“It’s very gratifying to win one J.D. Power and Associates Award for customer satisfaction, let alone eight of them in a row,” added Mr. Gates.  “Awards aside, however, our corporate goal remains the same: to exceed customer expectations.  We’ll continue to focus on that and work to do that every day.” added Mr. Gates.

Mr. Gates said he wished to congratulate each of OPPD’s employees for their role in achieving J.D. Power’s highest ranking for the eighth year in a row.  “This just doesn’t happen without employees who care about doing a good job for their customers,” he said.

The satisfaction study is based on telephone interviews with more than 35,000 residential customers of the 120 largest utilities across the continental United States. The interviews were conducted between March and the end of May of this year. This is the tenth year for the national survey conducted by the California-based marketing firm.

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OPPD Awards Five-Year Coal, Transportation Contracts

July 18, 2008

As a result, the cost of the contracts disappointed officials.  The Board approved contracts with Union Pacific Railroad (UP) to transport coal from mines in Wyoming to OPPD’s Nebraska City Power Station and North Omaha Power Station. Contracts also were approved with Rio Tinto Energy America of Gillette, Wyoming, and Arch Coal of St. Louis, Missouri.  Both companies will supply coal from their mines in the Powder River Basin in Wyoming.  The District will be using more coal during this five-year contract due to the opening next spring of an additional generating station at its Nebraska City location.

Costs are higher, but it isn’t yet possible to determine the total impact of the contracts since coal mine operators submitted bids for less than one-sixth of the coal OPPD needs over the next five years.  That will make planning difficult as the utility still needs to make additional deals to buy the rest of the coal it needs.

The new contract follows the trend of transportation contracts that allows the cost of the coal delivery to escalate should the cost increase for the diesel fuel that powers the trains.  That clause has now become standard in the industry, but it was not a provision of the existing transportation agreement.  That helped shield OPPD customer-owners from higher transportation costs during the current five-year contract as gasoline and diesel prices skyrocketed.

As part of the coal supply and transportation package of agreements, a contract was also awarded today to Kelly-Hill Company, of Kansas City, Missouri, for maintenance of the OPPD-owned rail line between Nebraska City and Lincoln.

In other action, the Board:

• awarded a contract to provide labor and material to install foundations for a new substation in Blair to General Excavating of Lincoln, Nebraska, for $922,205.
  
  
• awarded a contract to purchase fourteen outdoor breakers for installation at substations in Sarpy County to ABB in Omaha for $175,406.
  
  
• authorized management to enter into a contract to rebuild coal pulverizing equipment with Falk Renew Prager and Rexnord, Inc., of Deer Park, Texas, for $170,711.70.
  
  
• approved final reports on federal standards for net metering, fossil fuel generation efficiency and fuel source diversity standards and initiated consideration of federal standards on integrated resource planning, rate design to promote energy efficiency, smart grid information, smart grid investments and excess power generated at waste energy projects.
  
  
• recognized the actions of an OPPD employee who initiated CPR on a person who had collapsed on a downtown Omaha street.

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