Newsletters > June 2007 Customer Newsletter

 

News from the Northeast Nebraska Public Power District
June 2007

 

Automatic Meter Reading (AMR) Project is now underway
Over 1,200 meters have been installed in the Villages of Allen, Concord, Dixon, Newcastle, Ponca and some of the rural areas around Wayne, Dixon, and Wakefield. Even though the new meters have been set, they are not yet working in automatic mode. By August, we anticipate installing the remaining pieces of communications gear needed to get these meters to “talk” to the billing office in Wayne. Some, but not all, of this gear is in now place. We then will do testing and troubleshooting before the first bills go out under the AMR system. The AMR system is on schedule for 100% implementation within 18 months.

 

Emergency Load Curtailments might be needed this summer
We have been asked by our wholesale energy supplier, NPPD, to be prepared to shed loads on an emergency basis if this is needed to avoid a wide spread outage. NPPD is working to increase the capacity of its high voltage lines after this winter’s storms. Keep in mind that it is our job to plan for emergencies and to be ready to act. We do not greatly anticipate the likelihood that such a curtailment will become a reality, but we must be ready. This notice is part of this process. The Northeast Nebraska PPD has customers in three different ‘load zones’ for NPPD and any one or all three of these zones could become overloaded. Our response for emergency load shedding will depend upon the zone affected. Our plan at NeNPPD will be to respond to an emergency by taking selected substations out of service through the hours of the emergency period. If you have a special need or situation that requires uninterrupted power, then you should be advised of our plans for emergency load shedding and you should make plans to protect yourself and your equipment. Please know that such load shedding is the very last resort. Everyone at NPPD and NeNPPD will do everything possible to avoid such an emergency, but we must be prepared to act just in case it is unavoidable.

 

New Power Line to Emerson
If you drive 856 Rd. for two miles east of Hwy 9, then you will see our crews setting poles. This new line is to replace older lines, which serve the Villages of Emerson, Thurston and the rural area south of Emerson. The new line is what we call a ‘double circuit’ that is really two power lines on one set of poles. For this reason the poles are taller and heavier than usual and carry two sets of cross-arms. Overhead electric lines are easier to maintain and quicker to fix when there is trouble.

 

NeNPPD Board Members receive designation of ‘Credentialed Directors’
In February our Board attended a series of training classes in Wayne conducted by the National Rural Electric Cooperative Association. This nationally recognized training is specifically to help Board members of local power companies understand the business trends and information to make the Board more effective in setting policy and direction.

 

All Customers are being asked to complete an ‘Application for Service’
It has been our practice to ask old and new customers alike to complete a written application for service on each metered account. For our existing customers we don’t make this request until something changes with the account, like a transfer to another customer, or a request for re-connection, etc. Our requirement to have on file a written application is not a matter of anyone’s credit standing and we hope very much that it isn’t viewed that way. Please don’t be offended if after many years as a customer you are asked to make an application. The ‘Application for Service’ by the customer is the written document that is the basis of our business relationships with customers, much like a written lease or sales agreement in other businesses. We acknowledge that our records are incomplete and slowly we hope to get an “Application for Service” from everyone. To make it as convenient as possible, all customers may complete the application via our web page at www.nnppd.com. If you do not own a computer, then your nearest library can be of service or you may prefer to visit our office at 303 Logan St. in Wayne, NE. Because of the need to verify identification, we do not accept these applications through the mail.

 

Wind Power is a part of our ‘Mix’
If you have ever wondered if wind power is being used in NE, then the answer is yes!. Our wholesale provider, NPPD, owns and operates a wind turbine farm near Ainsworth, NE and the energy produced by the wind turbines is put into the mix of energy produced from coal, nuclear and hydro-electric plants owned by NPPD. NPPD is beginning to do even more. Utility grade wind turbines are the most cost effective. Even then, it is a challenge to maintain a constant supply when the wind isn’t blowing.

 

Safety Information is available at www.nnppd.com
The Northeast Nebraska PPD offers (free of charge) several informative booklets dealing with electrical safety inside and outside of the home. Pictures of the booklets and a description are on our website.

 

Audit for FY2006
On April 24, 2006 the entire Board heard the results of the 2006 audit from Mr. Roger Schmidt, Jr. of the firm of Schmidt and Co., which is the Board’s independent auditor. The findings were that management is maintaining the District’s financial records in a way that fairly present the financial condition of the District in all material respects and that conform to all accepted accounting principles. Highlights from the audit for 2006:

 

• The value of the utility plant increased by $3,459,979 from $31,867,031 to $35,327,010
• Revenues increased by $203,727 from $12,821,878 to $13,025,605, (1.6% increase in sales)
• Operating expenses decreased by $8,403 from $11,423,030 to $11,414,627, (all cost increases were absorbed)
• Retail rates have not increased since 2003.

The financial statements for 2006 can be viewed on our web site...

 

Balance Sheet 2006
Assets			Liabilities			Income Statement 2006
Electric Plant	$35,602,603		EQUITY	$21,640,044		Electric Sales	$12,638,811
Less Depreciation	(12,739,421)					Other Revenue	386,794
NET ELECT. PLANT	22,863,182					TOTAL REVENUE	13,025,605
						Cost of Power	7,879,320
						Transmission Expense	199,899
						Operation Expenses	370,091
						Maintenance Expenses	329,800
INVESTMENTS	2,046,081		TOTAL DEBT	5,057,031		Consumer Acc’t Expenses	408,664
						Other Expenses	31,332
Cash	1,132,660		Current debt payments	420,600		Administrative & General Exp	729,059
Other Securities	991,232		Accounts payable	839,539		Depreciation	936,754
Receivables	953,506		Accrued Expenses	411,787		Taxes	529,708
Materials and Supplies	553,652		Accrued Taxes	53,796
Prepayments	107,027		Customer Deposits	126,550		TOT. OPERATING EXP.	11,414,627
TOT.CURRENT ASSETS	3,738,077		TOT.CURR. LIAB.	1,852,272		INTEREST EXPENSE	240,138
						NET INCOME from OPERATIONS	1,370,840
DEFERRED DEBITS	66,307		DEFFER.CREDITS	164,300		Interest revenue	215,093
						Other Non-Operations Rev.	200,281
TOTAL ASSETS	$28,713,647		TOT. EQUITY& LIABILITIES	28,713,647		Capital Credits Earned	28,976
						TOT.NON-OPER. REV.	444,350
						NET INCOME FOR  2005	1,815,190

 

NeNPPD leads all Rural PPD’s in State for making payments to town and county governments
We serve 16 Villages in 5 counties. Our direct payments to local town and county governments in 2006 amounted to $529,708 (shown as taxes above) which was about ¼ of the total payments to local governments made by all rural PPD’s in the state. The average amount paid per PPD is $76,086. Yet our retail rates are less than average as in 2006 NeNPPD collected 6.99¢/kWh compared to the average in the state of 7.64¢. More specifically, NeNPPD residential costs averaged 7.31¢ vs. 7.68¢ statewide. NeNPPD also pays state and local sales taxes on about $5 million in purchases made annually.

 

Follow this link to see The Board of Directors and Manager