February is in the heart of winter and that’s when I most look forward to spring. New opportunities come in the spring when the cold loses its grip and frost has left the ground, geese are flying north, and the trees are budding again. I look forward to another season of growth and opportunity.
Staying open to opportunity is the direction we are taking with our wholesale power contract. Last July, Nebraska Public Power District (NPPD) offered a new 35-year contract to its wholesale customers. Currently, our Board of Directors see value in staying on the 2016 contract with NPPD. Three other districts have also chosen to stay on the existing contract. The 2016 contract has a 20-year term and continues until 2035. Over the last year both NPPD and Perennial have been working together on the future electric power in Nebraska.
NPPD has committed to build new generation near their Sheldon and Beatrice Power Stations to meet grid stability requirements and serve future loads for Nebraska. As one might expect, the additions are costly and a necessary part of growing opportunities for the state. It is projected that wholesale rates will continue to increase by 3-5 percent annually over the next 5 years to meet the rate of inflation and cover the costs for generation additions and maintaining the grid we rely on.
Just last year, Perennial energized one of the first carbon capture facilities in the state and plans to complete another customer site later this year. These projects lower the Carbon Intensity (CI) of ethanol and make it available to western states with Low Carbon Fuel Standards (LCFS). Both projects have a direct positive impact on the ethanol industry and the local economy by adding value to corn and other possible feedstocks in the future. By planning and meeting the needs of our customers, we can help bring positive change.
Another positive change is happening in the Bradshaw area. In the past couple of months you may have seen the great progress our crews have made constructing a new 69,000-volt transmission line to our Bradshaw Substation. This is an 8.5-mile line and the first portion of a loop that will connect to another NPPD substation to the west. Building this loop will improve the reliability for customers in the northwest area of the District.
President John F. Kennedy once said. “Change is the law of life. And those who look only to the past or present are certain to miss the future”. Perennial is looking to the future and keeping an open door to opportunities that best serve our district. In this last year we have completed our strategic planning with the aim of improving service for our customers. We look forward to serving our existing customers and welcoming new customers loads, both large and small, to our service area.
We have updated our mission statement to “Safe and Reliable Energy. Trusted Service and Commitment for Generations”. With this focus and the resolve of our employees and support of our directors we will bring excellent service to our customers both now and in the future.
