.jpg)
Dist. 40 Report
Even though the Legislature stands adjourned for the year, senators and committees are already laying the groundwork for the next legislative session.
One way this groundwork is laid is by the holding of interim study hearings by the various legislative committees. Interim study resolutions are typically introduced by senators or committees in the regular session in order to examine public policy issues in-depth during the time the Legislature is adjourned.
Last week, the Natural Resources Committee, on which I serve, held its first of three scheduled interim hearings for the year. At this hearing, two topics were discussed: (1) the nameplate capacity tax and (2) the impact of the net-zero plans and goals of public power utilities. I would like to take time to discuss some of what the Natural Resources Committee learned regarding the impact of net-zero plans.
A net-zero plan, as it relates to electric utilities, refers to a policy or series of policies that seek to offset the amount of carbon emissions produced and the amount that’s removed from the atmosphere. According to handouts from the hearing, the state’s three largest public power utilities - Lincoln Electric System, Omaha Public Power District (OPPD), and Nebraska Public Power District (NPPD) - have all adopted some sort of net-zero goal.
Such goals are being implemented across the electric utility space for a variety of reasons, including to (1) address environmental concerns, (2) mitigate a potential business risk in the face of regulation, and (3) respond to demand from large customers seeking zero or low carbon electricity, such as the ethanol industry which seeks to be competitive in the large California market.
A core theme of the hearing centered on the potential costs to ratepayers to implement net-zero plans, particularly if done poorly.
Perhaps the most striking example of that is Chimney Rock Public Power District in the panhandle. Chimney Rock PPD is a member of Tri-State Generation and Transmission Association based out of Colorado.
According to hearing testimony, due to the net-zero and clean air policies enacted in Colorado, Tri-State member rates are expected to rise 8 cents/kWh by 2032, whereas other similar Nebraska rural power districts that operate under the Nebraska Electric Generation and Transmission (NEGT) Coop are expected to have rates increase by only 5.7 cents/kWh by 2032.
While this does not seem like a substantial difference, in the course of years, it adds up. Between 2000 and 2024, the cost to provide power to customers for Tri-State was estimated to be $300 million more than NEGT.
One thing I was pleased to learn is several of our state’s public power utilities, including NPPD, are taking steps to ensure the new generation selected for the net-zero goal must be no more expensive than the generation it replaces.
As many readers are no doubt aware, electricity prices are rising, albeit more slowly in Northeast Nebraska relative to other parts of the state and country.
Regardless, these costs add to the cost of living in a time when property taxes and insurance costs are ballooning in the state. No doubt net-zero plans will continue to be vigilantly supervised in future legislative sessions here in Nebraska.
I invite you to let me know your thoughts. My office phone number is (402) 471-2801 while my email is [email protected]. My address is: Sen. Barry DeKay, Dist. 40, P.O. Box 94604, State Capitol, Lincoln, NE 68509.
