CHAPTER NOTES
CHAPTER ONE
- Laws, Joint Resolutions, and Memorials, Legislative
Assembly of the State of Nebraska, Nineteenth Session, January 6,
1885; pp. 114-117. For additional early statutes also see: Laws,
Joint Resolutions, and Memorials, General Laws, Chapter
13, section XIII, p. 195, January 1, 1889; Laws, Joint
Resolutions, and Memorials, General Laws, Chapter 19, p.
350, March 30, 1889.
- For a listing of municipal electric systems in all states and their
dates of each system’s formation, see Public Power, "Annual
Statistical Issue", American Public Power Association,
Washington, DC, January-February 1997.
- Harry M. Trebing, "Nebraska’s Continuing Power Problems: Part
1," Public Utilities Fortnightly, Volume 69, Number 7,
March 29, 1962; p. 434.
- See Public Power, Annual Statistical Issue, 1997.
- Roberta K. Barndt, "Nebraska and Rural Electrification Through
1940," unpublished thesis, University of Nebraska, December 1976,
p. 4, figure 1 and figure 2.
- Richard A. Peace, The Next Greatest Thing, (The National
Rural Electric Cooperative Ass’n.; Washington, D.C. 1984), pp.
40-41.
- Judson King, "Nebraska, the Public Power State: Part III,"
Public Utilities Fortnightly, April 10, 1947, p. 483.
- Harry M. Trebing, "Nebraska’s Continuing Power Problems: Part
I," Public Utilities Fortnightly, March 29, 1962, p.
435.
- Robert Firth, Public Power in Nebraska, (Lincoln:
University of Nebraska Press, 1962), pp. 38-39; pp. 162-163.
- See: William Mosher, Electrical Utilities: The Crisis In Public
Control, (New York: Harper & Brothers, 1929), pp. 110-111.
Also: Clarence E. McNeil and Herschel Jones, "Nebraska’s
Electric Power Development in Relation to Municipal Service," Nebraska
Studies in Business, No. 44, April 1939, p. 20.
- Correspondence of Sorensen to King, July 26, 1939, cited by Barndt,
p. 41.
- See Trebing, p. 439.
- See Trebing, p. 441.
- "Final Report of the Nebraska Legislative Council Subcommittee
on Public Power," Nebraska Legislature, September 27, 1944, p.
15.
- See "Final Report".
- See "Final Report".
- See "Final Report".
- Trebing, "Part II," Public Utilities Fortnightly, April
12, 1962, pp. 511-512.
- "Final Report", p. 40.
- "Final Report", pp. 22-23.
- "Final Report, pp. 40.
- "Final Report", pp. 36-38.
- "Final Report", p. 57.
- Bill Beck, Light Across the Prairies: An Illustrated History of
the Northwestern Public Service (Northwestern Public Service
Company), p. 93.
- Beck, p. 144-150.
- "Final Report", p. 20.
- For listing of systems, see Firth, p. 179.
- Firth, p. 278.
- Michael O’Hara, "Nebraska Power Review Board: Regulating A
Publicly-Owned Electric Utility Industry," (unpublished
dissertation, University of Nebraska, 1983), p. 85.
- Nebraska Revised Statutes, Chapter 70, Article 10, Section 1.
- The provision of the decision that overturned LB 764 that determined
it was "special legislation" [Wittler v. Baungartner et al.,
180 Neb. 446, 144 N.W. 2nd] was later reversed by the Nebraska Supreme
Court in 1979 in a case concerning the legislature’s creation of the
Nebraska Mortgage Finance Fund Act. [State ex rel. Douglas v. Nebraska
Mortgage Finance Fund, 204 Neb. 445, 283 N.W. 2nd 12 (1979)]
- L.B. 297 was passed in 1967 to allow use of transmission lines for
wheeling wholesale power supplies. This use was refined with passage
of L.B. 441 in 1969.
- Energy Supply and Environmental Coordination Act, (Public Law
93-319); this restriction was extended in 1978 by the Powerplant and
Industrial Fuel Use Act, (Public Law 95-620), and ultimately repealed
in 1987.
- Nebraska Legislature, "Review of Rates and Operations of
Nebraska Power Industry," Phase I, February 11, 1976, see cover
letter.
- The L.R. 161 bills were: L.B. 454, L.B. 460, L.B. 461, L.B. 462.
- L.B. 119.
- L.B. 302.
- The National Energy Act of 1978 contained the Public Utility
Regulatory Policies Act (PURPA) (Public Law 95-617).
- For example, OPPD witnessed its previous annual growth rate in peak
demand of 8 percent drop to 6 percent by 1976. By 1996, Nebraska’s
projected statewide annual growth in peak demand had dropped to 1.5
percent.
- L.B. 705, 1987.
- "Nebraska Power Association: Review of Public Power Industry
Structure," Nebraska Power Association, 1988, pp. 35-36.
CHAPTER TWO
- Much of the data in the Phase I Study regarding Nebraska’s
electric systems (Public Power Districts, Rural Cooperatives and
Municipal Systems) was gathered as part of the L.R. 455 Survey
undertaken with the cooperation of the Nebraska Power Association in
December 1996. Other pertinent financial or operational information on
Nebraska systems was gathered on an individual system basis, or
through industry associations and sources.
- Nebraska Power Review Board data and information.
- For additional information on governance of Nebraska’s electric
system see: Nebraska Blue Book 1994-1995 (Lincoln, Nebraska:
Clerk of the Legislature, published biennially), pp. 910-915.
- General information on state regulatory commissions may be found in:
Utility Regulatory Policy In The United States and Canada
(Washington, D.C.: National Association of Regulatory Utility
Commissioners, 1995).
CHAPTER THREE
- In 1979 the legislature declared it was the policy of the state to
provide adequate electrical service at as low an overall cost as
possible, consistent with sound business practices and, in furtherance
of such policy, electric service should be provided by non-profit
entities, including public power districts, public power and
irrigation districts, non-profit cooperatives and municipalities. (See
Nebraska Statute 70-1301.) This followed a 1963 policy issued by the
legislature that duplication of facilities was not in accord with
sound business public policy and that dependable electric service at
the lowest cost should be provided to all the residents of the state,
including the residents of cities and villages. (See Nebraska Statute
70-1101.)
- See Nebraska Statute 70-1101.
- The Power Review Board was established by L.B. 220 (1963).
- Note to Table 3-1. The distinctions indicated in this matrix are
intended to show the general differences in the kinds of services
public power districts, rural cooperatives, municipal system and a
joint action agency may currently provide under law. Valid arguments
maybe raised regarding specific conditions or situations in which the
range of difference can be altered. Final distinctions in these cases
may result only from litigation or legislation.
- The law established the public power districts is now codified
generally as Nebraska Statute, Chapter 70, Article 6.
- L.B. 658 (1997) authorizes power districts to own and operate,
contract to operate, or lease energy equipment. It also authorizes the
power districts to provide billing, meter reading, surveys,
evaluations or other administrative services (but not to include
natural gas services) of public utility system within the district’s
service territory. In addition, it makes clear that the power
districts can obtain grant and loan funds from the U.S. Department of
Agriculture and other federal agencies to promote economic development
and job creation projects in rural areas of the state.
- Interlocal Cooperation Act (ICA), Nebraska Revised Statutes, Chapter
13. The ICA was revised in 1997 by L.B. 269 which allows political
subdivisions with dissimilar powers to enter into contracts to have
one of the entities exercise some or all of the powers of the other.
Prior to this change, the ICA only allowed political subdivisions with
common power to enter into such agreements.
- PPD property can be mortgaged to secure repayment of debt. All
liability of the PPD is to be payable solely from revenue derived from
the sale of electricity, water for irrigation, ethanol, use of
radioactive materials or issues of indebtedness.
- Note to Table 3-2. The distinctions indicated in this matrix are
intended to show the general differences in authority between the
types of electric systems in the ability or authority to conduct
business. Valid arguments may be raised regarding specific conditions
or situations in which the range of difference can be altered. Final
distinctions in these cases may result only from litigation or
legislation.
- Wholesale agreements are established under Nebraska Statute
70-1002.01 and are voluntary agreements. Wholesale agreements do not
establish service areas within the meaning of Chapter 70, Article 10.
Retail service agreements are binding on the parties to the agreement
as well as binding on other electrical suppliers in Nebraska. The
provision establishing retail service areas is defined in Chapter 70,
Article 10. Particular criteria set forth in the statutes on any
modification to be made to a service area is contained in Nebraska
Statutes 70-1008, 70-1009, 70-1010 and 70-1011.
- For additional information on the Power Review Board, see Nebraska
Blue Book 1994-95, Clerk of the Legislature, (Lincoln Nebraska
State Legislature, published biennially), p. 696.
- For additional information on the Public Service Commission see: Nebraska
Blue Book, 1994-95, p. 410.
- The Lincoln-Lancaster County Health Department and the City of Omaha
are authorized to administer the air and water programs for their
jurisdictions, which include the metropolitan areas of Lincoln and
Omaha.
- For additional information on the Department of Environmental
Quality see: Nebraska Blue Book. 1994-95, p. 479.
- For additional information on the Nebraska Energy Office see: Nebraska
Blue Book, 1994-95, pp. 562-563.
- For additional information on the State Judicial Branch see: Nebraska
Blue Book, 1994-95, p. 759.
- For background on MAPP see: Bill Beck, Interconnections: The
History of the Mid-Continent Area Power Pool, (Minneapolis,
Minn.: Mid-Continent Area Power Pool, 1988).
- The duty of a utility to provide universal service is widely
recognized as on implied at common law and need not be expressed by
statute or contract, or in the charter of the public utility. See 64
Am Jur 2nd 562, Public Utilities, section 16.
- Nebraska Statute 70-1017 requires: "Any supplier of electricity
at retail shall furnish service, upon application, to any applicant
within the service area of such supplier if it is economically
feasible to service and supply the applicant. The electric service
shall be furnished by the supplier within a reasonable time after the
application is made. If the supplier and the applicant cannot agree
upon any of the terms under which service a to be furnished, or if the
applicant alleges that the supplier is not treating all customers and
applicants fairly and without discrimination within the same rate
class, the matter shall be submitted to the board for hearing and
determination." Also see: Neb. Rev. Stat. 16-679 and Neb. Rev.
Stat. 16-681.
- See Neb. Rev. Stat. 16-679.
- See Neb. Rev. Stan. 70-1001 and Neb. Rev. Stat. 70-1101.
- In the event of a disagreement between a generating agency and a
distribution system over the terms and conditions of any agreement,
the Power Review Board may be requested to hold a hearing on the
issues involved. However, any ruling by the Power Review Board
regarding rates to be charged are advisory only.
- In restructuring legislation passed by other states, the
"default" provider is commonly the existing utility provider
for a transition period of 5-7 years. Rates for "default"
service from the utility are set by state regulators. At the end of
the transition period, "default" service is envisioned to be
provided at spot market prices.
- See Neb. Rev. Stat. 18-418.
- Note to Table 3-3. The distinctions indicated in this matrix are
intended to show the general differences in service and rate
requirements between the types of electric systems. While it is
generally accepted that public power districts operate under state
requirements not applied to municipal or cooperative system, valid
arguments may be raised regarding specific conditions or situations in
which the range of difference can be altered. Final distinctions in
these cases may result only from litigation or legislation.
CHAPTER FOUR
- L.R. 455 Survey.
- Nebraska Power Association, Statewide Integrated Resource
Planning Coordination Report: 1997-20016, October 1996, pp.
53-55.
- See 1996 IRP Report, p. 55, and "Pauline-Moore Line Addition
and GGS Full Capacity Utilization DRC/Operating Study," NPPD.
- L.B. 297 (1967); LB. 441 (1969).
- L.R. 455 Survey.
- IRP Report, p. 12 and Appendix E.
- The North American Electric Reliability Council (NERC) is a
not-for-profit company formed by the electric industry in 1968 to
promote reliability of electric supply in North America. NERC consists
of nine Regional Reliability Councils and one Affiliate whose members
account for virtually all the electricity supplied in the United
States, Canada and a portion of Baja California Norte, Mexico. The
Mid-Continent Area Power Pool, which includes Nebraska, is one of the
nine regional councils.
- For background on MAPP see: Bill Beck, Interconnections: The
History of the Mid-Continent Area Power Pool, Minneapolis, Minn.:
Mid-Continent Area Power Pool, 1988).
- Resource Management International, "The Relative System
Reliability of Public-Owned and Privately-Owned Electric
Systems," prepared for American Public Power Association,
December 1996.
- RMI, 1996.
- National Rural Utility Cooperative Finance Corporation, "Data
for National Outage Statistics: Special Report Request,’’ January
1997.
- L.R. 455 Survey.
- The planning process was established in 1981 by L.B. 302 and amended
in 1986 by L.B. 948, now encoded in Nebraska Statute 70-1026.
Integrated Resource Planning was encoded in Nebraska Statute 66-1060,
Article 10 (f).
- For detailed definitions of the process of Integrated Resource
Planning, see the Nebraska Power Association’s Statewide
Integrated Resource Planning Coordination Report (1997-2016),
October 1996.
- Data from the L.R. 455 Survey, the IRP Report and verification with
utility personnel.
- IRP Report, 1996, p. 12.
- Clean Air Act Amendments of 1990, Public Law 101-549.
- EPA Office of Air and Radiation, USA Air Quality Nonattainment
Areas. October 11, 1996. (http://www.epa.gov//airs/nonattn.html).
- IRP Report, 1996, p. 66.
- EPA Office of Air and Radiation, Acid Rain Program Overview,
April 1996 (http://www.epa.gov/docs/acidrain/overview.html)
- EPA Office of Air and Radiation, 1995 Final Emissions Data Files
for Phase I and Phase II.
- IRP Report, 1996, p. 69
- "CO2 Emissions and the Missing Carbon
Problem," Information Unit on Climate Change, (United Nations),
May 1993.
- Second Assessment Report of the Intergovernmental Panel an
Climate Change, L.G. Meiro Filho, B.A. Callander, N. Harris, A.
Kattenberg, K. Maskell (Eds.), (Port Chester, NY: Cambridge University
Press, 1996).
- EPA Office of Air and Radiation, 1995 Final Emissions Data Files
for Phase I and Phase II.
- U.S. EPA Office of Air and Radiation, Counties Projected Not To
Meet EPA’s Proposed PM-2.5 Standards, December 1996.
- Data from the L.R. 455 Survey.
- Data reported in the L.R. 455 Survey.
- Bills related to renewable energy introduced in the 1997 Unicameral
Session included: L.B. 140, L.B. 428, L.B. 501, L.B. 571, L.B. 867.
- This information was gathered through the L.R. 455 Survey and may
not note other unrecorded customer generation.
- Energy Information Administration, Electric Power Annual 1995
Volume II, DOE/EIA-0384(95)/2.
- L.R. 455 Survey.
- L.B. 757 (1993).
- L.R. 455 Survey.
CHAPTER FIVE
- L.R. 455 Survey.
- L.R. 455 Survey.
- L.R. 455 Survey.
- L.R. 455 Survey.
- Tax Reform Act of 1986, Public Law 99-509.
- Alan Spen et al, Public Power’s New Reality. Fitch
Investor Service, June 1995, also see Fitch Competitive Indicator,
January 1995.
- L.R. 455 Survey.
- L.R. 455 Survey.
- American Public Power Association, 1994 Payments and
Contributions by Public Power Distribution Systems to State and Local
Government, March 1996.
- Financial Statistics of Major U.S. Investor-Owned Electric
Utilities 1994, U.S. Department of Energy, Energy Information
Administration.
- It should be noted that there has been a long-running national
debate related to tax and subsidy issues for private-investor owned
electric companies and public power and rural cooperative systems.
Investor-owned utility perspective may be found in: "Subsides and
Unfair Competitive Advantages Available to Publicly-Owned and
Cooperative Utilities," Putnam, Hayes and Bartlett, September
1994. Public power perspective may be found in: "Major Tax
Subsidies to Investor-Owned Electric Utilities and the Cost to the
U.S. Treasury: A Report to the American Public Power
Association," MSB Energy Associates, May 1995.
CHAPTER SIX
Deregulation of the telecommunications, airlines and natural gas
industries was accomplished under various Federal Communications
Commission decisions and the Telecommunications Act of 1996, Airline
Deregulation Art of 1978 and various Federal Energy Regulatory Commission
orders and the Natural Gas Policy Act of 1978, respectively.
Public Utility Regulatory Policies Act of 1978 (Public Law 95-617).
Energy Policy Act of 1992 (Public Law 102-486).
Public Utility Holding Company Act of 1935 (Public Law 74-333).
16 U.S.C. Section 824(h)
Transmission access for wholesale level competition was initiated in
Nebraska by passage of L.B. 297 (1967) and refined by passage of L.B. 441
(1969).
Moody’s Investor Services, "Stranded Costs Will Threaten Credit
Quality of U.S. Electrics," August 1995.
DRI/McGraw Hill World Energy Service, U.S. Outlook: Fall/Winter
1996, (Lexington, Mass., 1996), p. 44.
Deliotte Touche, Federal, State and Local Tax Implications of
Electric Utility Restructuring. (Washington, D.C.: National Council
on Competition and the Electric Industry), October 1996.
Chapter One - HISTORY
Chapter Two - STRUCTURE AND
GOVERNANCE
Chapter Three - STATUTORY AND
REGULATORY OVERSIGHT
Chapter Four - PLANNING AND
OPERATIONS
Chapter Five - FINANCE AND TAX
Chapter Six - DEREGULATION AND
RESTRUCTURING
Glossary
Chapter Notes
The Central Nebraska Public Power and
Irrigation District
415 Lincoln Street
P.O. Box 740
Holdrege, Nebraska 68949
Phone 308-995-8601 Fax 308-995-5705
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