Representing Nevada’s Rural Electric Cooperatives,
Power Districts, and Municipal Utilities.
Prepared for the Assembly Commerce and Labor Sub-Committee on Energy
February 15th, 2017
Presented By:
Richard “Hank” James
Executive Director
NREA
Kevin Robison
Assistant General Manager
Mt. Wheeler Power, Inc.
NEVADA RURAL ELECTRIC ASSOCIATION
• Founded in 1974 to represent the collective interests of Nevada’s
rural electric utilities.
• NREA utility members are not-for-profit distributors of electric
service:
• One municipal utility
• Six rural electric cooperatives
• Two power districts.
Governance
• Local, democratically elected boards are at the center of each member
utility.
• Fundamental strategic plans begin with:
• provide safe, reliable and lowest cost electric service for the ownermember/consumers whom they serve.
• PUCN oversight is limited as prescribed in various NRS enabling statutes
relative to the Association’s entities:
• Electric Cooperatives, Power Districts and/or Municipalities.
NREA utility members do not
have “customers”
• Net revenues are allocated back to the “Owner/Members” as capital
credits… Either refunded by check or utility bill credit on a pro-rata
basis. (Cooperatives)
• For Public Utility Districts and Municipalities, net revenues are
returned to the consumer manifested in lower rates or lower taxes.
• Local Boards set strategic direction for their own utilities:
Total Utility Plant
Investment
Total Annual
Revenue
Total Employees
Total Annual
Payroll
$293,852,330
$184,353,076
266
$12,345,678
STRATEGIC PLANNING
• A common strategic goal of NREA Utility Members –
- Meet native demand for electricity within each service area
• Fiscal stability
- An important responsibility of NREA utility members’ local BOD’s
- BOD’s set Budget goals to ensure sustainable funding and capitalization
for their respective organization.
• Member equity
- An essential part of the financing plan for cooperatives.
STRATEGIC PLANNING
(Continued)
• The democratic structure of NREA member Boards
- Enable each utility’s Board to make progressive changes to their own energy policies
only if their owner-members/consumers want change.
• Acquire and distribute least-cost renewable/carbon-free generation resources
- To meet their local service area needs as they arise.
• NREA utility members have no profit motive when setting rates.
Rate components = Energy + Demand + Cost of Business
NREA UTILITY MEMBERS
• Harney Electric Cooperative, Hines, OR
• Lincoln County Power District No. 1, Pioche, NV
• Mt. Wheeler Power, Ely, NV
• Overton Power District #5, Overton, NV
• Raft River Rural Electric, Malta, ID
• Wells Rural Electric Company, Wells, NV
• Boulder City Electric Utility, Boulder City, NV
• Surprise Valley Electrification Corp, Alturas, CA
• Plumas-Sierra Rural Electric Co-op, Portola, CA
LOCATION OF NEVADA’S RURAL
ELECTRIC UTILITIES
NEVADA’S RURAL UTILITIES
• Provide electricity over ~50% of the land and serve ~10% of the
Nevada’s population.
• NREA utility members serve an average 5.2 consumers per mile of
distribution power line, compared to over 34 consumers per mile.
• Nevada’s rural utilities operate distribution systems and seek to
acquire and distribute least-cost renewable/carbon-free generation
resources to meet their local needs as they arise.
Accounts
in Nevada
NV Service Area
Sq. Mi.
MWh
Sold/2015
41,562
48,216
2,731,475
Peak Load
Miles of
Miles of
MW
Distribution Transmission
503
12,248
1,664
Summary by the Numbers
• Utility Members: 9
• Renewable/Carbon-Free Portfolio: ~65%
• Nevada Consumers: 41,562
• Owner-Member/Consumers per mile of distribution line : 5.2
• Nevada Service Territory: 48,216 square miles
• Employees: 266
• Combined Load: 2,731,475 MWh - Peak Load: 502 MW (CY2015)
• Elected Owner-Member/Consumer Directors: 68
SUPPORTING THE RENEWABLE ENERGY
INDUSTRY IN NEVADA (Examples)
Over 65% of the combined electricity purchases are from
renewable/carbon-free sources
• Lincoln County Power District #1 - Nevada’s first community solar project in 2016.
• Raft River Rural Electric Cooperative, as a member of a G & T Cooperative, has ownership in a
landfill gas-plant generation facility.
• Plumas-Sierra Rural Electric Cooperative owns a combined heat and power co-generation facility.
• Wells Rural Electric and Mt. Wheeler own small and separate local hydroelectric generators.
• Surprise Valley owns a geothermal power plant.
__________________________________________________________
• NREA utility members support the development of renewable energy generation
on both sides of the meter, which include net metering policies that provide
energy credits on the monthly bill, or, with a direct payment.
• Overton, Plumas-Sierra, Boulder City, Lincoln County, and Mt. Wheeler all provide
rebates for small solar and other renewable/carbon-free installations.
RENEWABLE ENERGY
DEMONSTRATION PROJECTS
• Mt. Wheeler Power Company and Overton Power District
• Solar demonstration projects
• Ground source heating and cooling systems at their offices.
• Wells Rural and Plumas-Sierra Electric Cooperatives
• Heat and cool their headquarters with geothermal systems.
Owner-Member/Consumer
FINANCIAL ASSISTANCE PROGRAMS
• LOW-INCOME PAYMENT ASSISTANCE
• Direct donations toward energy costs, or, provide funds to local service
organizations, agencies, and churches … some, without regard for energy
source. (wood, oil, propane, electricity)
• LOW-INCOME WEATHERIZATION PROGRAMS
• Partnership with Rural Nevada Development Corporation (RNDC) to fund
weatherization for low-income consumers
COMMUNITY INVOLVEMENT
• COMMUNITY AND RURAL ECONOMIC DEVELOPMENT
• Some NREA member utilities also provide water, sewer, natural gas, electrician
services, telecommunications and Internet service to enhance the economic
viability of communities in rural Nevada.
• RESPONSIBLE COMMUNITY LEADERSHIP
• NREA utility members make generous contributions to the civic organizations
and schools in the communities they serve.
• NREA utility members have also created non-profit foundations, which use
voluntary donations from their consumers to fund scholarships and community
projects like swimming pools, playground equipment, cemetery fences and firefighting and rescue equipment, among others.
Total Utility Plant
Investment
$293,852,330
Total Annual
Revenue
$184,353,076
Total Employees
266
Total Annual
Payroll
$12,345,678
th
79
Nevada Legislature
Understanding Today’s Challenge for NREA and
Nevada’s Rural Public Power
Understanding Today’s Challenge
NREA utility members embody the Energy Choice Initiative.
• A pioneering spirit motivated local citizens to pool resources and create membercentric organizations such as Cooperatives, Power Districts and Municipals to:
• Aggregate native loads
• Take their loads to the market and find the best available resource and price
• Ensure capacity and reliability on behalf of those being served with
a not-for-profit business model.
• No I.O.U. wanted to make the choice to serve Nevada’s rural areas and would likely
make the same choice today.
• Today, NREA utility members have evolved with independent and democratically
elected Boards who provide choice as to where they buy power from every year.
• This one owner-member/one vote, democratic structure differentiates NREA utility
members from our Investor-Owned peers.
NREA & Energy Choice
• NREA utility members currently display characteristics of Energy
Choice for their owner-member consumers.
• NREA Members are educated and invested in modern renewable
energy technologies where the value is apparent.
• Their policies are set to achieve fair and equitable business
sustainability for all owner-member/consumers.
• We stand together as an Association of independent not-for-profit
electric utilities… ready, willing and able to assist this committee and
the Nevada Legislature to ensure the availability of safe, reliable, and
low-cost electric service in Nevada.
Nevada Rural Electric Association
Richard “Hank” James
Executive Director
1894 E. William Street, Suite 4222
Carson City, Nevada 89701
(775)275-0439
[email protected]