MEAN Board, Management Committee approve distributed

Essent
Our Product is Energy
Our Mission is Service
Our Power is People
Essential news for NMPP Energy members
July 2016 Vol. 41 Issue 6
N
Nebraska Municipal Power Pool
e
l
w
s
l
e
Municipal Energy Agency of Nebraska
t
l
t
e
INSIDE
Superior, Red Cloud shine: Nebraska governor honors Superior,
Red Cloud for economic development efforts ................................Page 5
r
National Public Gas Agency
l
Public Alliance for Community Energy
MEAN Board, Management Committee
approve distributed generation interim policy
The MEAN Board of Directors
and Management Committee, at
their May 19 joint meeting, approved an interim distributed and
renewable generation policy for all
MEAN total requirements power
participants to accommodate the
growing trend of local renewable
distributed generation projects.
The interim policy establishes
an exception and provides clarification to the full requirements purchase
obligation under the MEAN total
requirements power supply contracts
for MEAN participants to install
under certain limited circumstances
renewable generation resources to
offset portions of their electric supply
requirements from MEAN.
Recent trends in state and federal
regulation and legislation promote the
expanded deployment of renewable
and distributed generation technologies such as residential/business rooftop solar and community renewable
energy projects. The interim policy is
expected to be finalized in the coming months and can be altered by
the MEAN Board as the need arises
including regulatory developments.
“The energy environment is
changing rapidly where more end-use
customers seek to generate a portion of their own electricity,” said
Tim Sutherland, MEAN director of
wholesale operations. “This interim
policy provides a framework to accommodate that while still fulfilling
MEAN participants’ obligations from
NMPP Energy photo
The interim distributed and renewable generation policy recently
approved by the MEAN board and management committee accommodates
the growing trend of local renewable generation projects.
What is Distributed Generation?
Distributed generation is essentially on-site electric generation. Typical examples of distributed generation installations
are rooftop solar or a small on-site wind turbine. The term
“behind-the-meter generation” is also frequently used.
What is a Total Requirements Participant?
A Total Requirements Participant is a city/utility that purchases all its electricity, in excess of any federal allocations it receives,
from a specific supplier – in this case MEAN. Both parties are contractually obligated to purchase and supply electricity under a
total requirements power supply contract. These contracts allow
for the procurement of power supply through long-term financing, resulting in economical power supply.
a wholesale power supply standpoint
that includes costs from fixed asset ownership and long-term power
contracts.”
Category-based approach
The interim policy uses a category-based approach, distinguishing
between behind-the-meter generation
See ‘POLICY’ on page 4
Committee members reappointed ACE, NMPP
at NMPP Board meeting
oppose gas
Appointments for two Nebraska Municipal Power Pool (NMPP)
committees were made during NMPP’s board meeting June 2 in
Lincoln.
NMPP Board President Darrel Wenzel reappointed six committee members and appointed three new members to the Energy
Research and Development Fund (ERDF). Wenzel also reappointed
members of the Computer Services Review Committee (CSRC).
2016-17 Energy Research
and Development Fund Committee
Those being appointed to the ERDF committee were:
• Ron Doggett, Gering, Neb.
• Pat Davison, Imperial, Neb.
• Tom Goulette, West Point, Neb.
• Duane Hoffman, Oxford, Neb.
• Bob Lockmon, Stuart, Neb.
• Wes Olson, Red Cloud, Neb.
• Mike Palmer, Sidney, Neb. (new appointee)
• Collin Bielser, Fairbury, Neb. (new appointee)
• Randy Woldt, Wisner, Neb. (new appointee)
The ERDF Committee manages ERDF grant funding for innovative energy projects to communities/utilities participating in the
voluntary program.
2016-17 Computer Services Review Committee
Those being reappointed to the CSRC were:
• Nancy Bryan, Stromsburg, Neb.
• Karla Chase, Cozad, Neb.
• Kellie Crowell, Ravenna, Neb.
• Lanette Doane, Ansley, Neb.
• Stephanie James, Wisner, Neb.
• Joan Kovar, David City, Neb.
• Pam Rasmussen, Gibbon, Neb.
• Janice Smidt, Superior, Neb.
• Mary tenBensel, Arapahoe, Neb.
• Kari Wilson, Haxtun, Colo.
The committee reviews PowerManager® software program
requests from software users and assists in providing input and recommendations on software upgrades and improvements. For more
information on these committees, contact Andrew Ross at NMPP,
(800) 234-2595.
®
Essent
2
www.nmppenergy.org
July ‘16
agreement
application
The Public Alliance for
Community Energy (ACE) and
Nebraska Municipal Power Pool
recently provided testimony to
the Nebraska Public Service
Commission
Legislative
opposing the
Notes
application by
Black Hills/
Nebraska Gas
Utility Company regarding
its long-term
physical natural gas hedge
By Chris Dibbern
contract with
Black Hills Utility Holdings Inc.
as part of its plan to implement a
cost of service gas program.
The program, if approved,
would be used to acquire natural
gas reserves in an effort to serve
customers. ACE and NMPP
requested disapproval of the
company’s application based on
the following arguments:
• The program could result
in substantial costs that would
impact customers;
• The program is lengthy
and could result in substantial
exit costs;
• It could jeopardize the
Nebraska Choice Gas program
and be a stepping stone for subsequent action in the program’s
Central and Western regions;
• The program is similar to
an older contract (P0-802) that
SourceGas just received permisSee ‘GAS AGREEMENT’ on page 4
NMPP Board approves three
new Champion businesses
The NMPP Board of Directors approved three businesses
for the NMPP Champions
program at the board’s quarterly
meeting in June.
NMPP Champions are businesses and organizations that
support NMPP’s effort to provide products and services to the
NMPP membership. The three
businesses approved were:
Consortia Consulting
Consortia Consulting provides regulatory, financial and
operational consulting services
to municipalities regarding telecommunications. (www.consortiaconsulting.com)
Power Plant Compliance, LLC
Power Plant Compliance
provides compliance documentation, consultation and performance test coordination to
be a liaison between municipal
facilities, the Environmental
NMPP Energy Champion
businesses are on page 7 and
online links are provided at
www.nmppenergy.org.
Protection Agency and state
environmental agencies. (www.
powplant.com)
NAQS – Environmental
Experts
NAQS Environmental
Experts is an environmental
consulting firm specializing in all
aspects of air, water and waste,
including permitting, compliance, reporting, auditing and
testing assistance. NAQS works
with municipality staff to ensure
power plant compliance. (www.
naqs.com)
Efficiency through utility business
management software
PowerManager® software gets the job done
effectively and efficiently, whether managing
billing, balancing accounts, bank statements
and budgets, tracking payroll or inventory.
For more information contact:
Nicole Kubik
800-234-2595
www.PowerManagerPlus.com
PowerManager® and Easy Clerk® are registered trademarks of
the Nebraska Municipal Power Pool.
JOC officers
elected at
June meeting
The NMPP Energy Joint Operating Committee held annual
officer elections for fiscal year
2016-17 at its June 1 board meeting in Lincoln. The 12-member
committee consists of three representatives from each of the four
NMPP Energy organizations.
The following officers were
elected to one-year terms:
• Jeff Wells, city manager,
Fort Morgan, Colo., chairman;
• Ron Doggett, electric utilities superintendent, Gering, Neb.,
vice chairman; and
• Cheryl Saathoff, city clerk/
treasurer, Franklin, Neb., secretary.
Among the duties of the
committee, which meets twice a
year, is to review budgets of each
of the organizations, determine
allocation of expenses and to approve compensation structure and
benefits of NMPP employees.
Utility Billing
Manages a municipality’s billing for water, sewer, refuse,
electric, natural gas and contracted services
EasyClerk®
Produces and customizes bills for water, sewer, refuse and
contracted services
Service Order
Tracks, manages and organizes service orders
Accounts Receivable
Manages customer accounts
General Ledger/Accounts Payable
Utility and business bookkeeping & budget projection capability
Bank Statement Reconciliation
Reconcile your bank statements quickly
Payroll
Keeps track of vital payroll and employee information
Inventory
Tracks inventory, work & purchase orders
®
Essent
3
www.nmppenergy.org
July ‘16
Staff
Notes
Tim Cerveny joined NMPP
Energy in June as manager of
resources and
transmission
assigned to
the Municipal
Energy Agency
of Nebraska
(MEAN).
Prior to
joining NMPP
Energy/MEAN he worked at the
Nebraska Public Power District
for 25 years, most recently as
an asset management specialist.
His time at NPPD also included
experience with power plant
instrument and controls, substation maintenance, management
of combustion turbine and power
plant maintenance.
He has an associate degree
from Southeast Community College in electromechanical technology and a bachelor’s degree
in management from Bellevue
University.
***
Megan Shupe joined NMPP
Energy in May as a part-time law
clerk. She is a
first-year law
student at the
University
of NebraskaLincoln. She
earned her
bachelor’s degree in political science in 2015 from Seton
Hall University in South Orange,
N.J., and most recently worked
as an office intern for New Jersey
Gov. Chris Christie.
®
Essent
4
www.nmppenergy.org
July ‘16
Policy
Continued from page 1
projects (end-use customer) and
Total Requirements Participant
(TRP) projects that could be used
to offset electricity purchases
from MEAN.
Behind-the-meter projects
are typically smaller and include
residential rooftop solar installations whereas a TRP project would
include larger projects such as a
community solar garden.
The interim policy has separate provisions for behind-themeter generation projects that are
25 kilowatts or less and projects
greater than 25 kilowatts. Most
residential projects fall in the 25
kilowatts or less category.
For larger TRP-owned projects, the interim policy includes
a two percent cap based on the
TRP’s annual kilowatt-hour
usage based on three-year historical annual average electric load
served by MEAN. Once the TRP
reaches the cap, the electricity
offset from MEAN ends for that
fiscal year.
Striking a Balance
Adoption of the interim
policy came after the MEAN
Ad Hoc Committee studied the
distributed generation issue over
the past year. The committee
consisted of a cross-section of
nine MEAN Board representatives of long-term participants
from multiple states.
“The committee is to be
commended for working together
on a complicated issue,” said
Sutherland. “They struck a good
balance between allowing those
communities and their residents
who want to have the option
to self-generate some of their
electricity while recognizing the
financial responsibilities that
accompany MEAN’s long-term
power supply costs as a reliable
and financially sound wholesale
power supplier.”
MEAN is a member-driven
organization as it is owned and
governed by its power participants. Each MEAN participant
has a voting representative on
the Management Committee and
most have taken additional steps
to also serve on the Board.
For a copy of the interim
policy, contact Carol Brehm,
MEAN member relations representative, at [email protected] or call (800) 234-2595.
Dibbern
Continued from page 2
sion to get out of and customers have to pay a surcharge for
several years;
• The program would allow
an unregulated business affiliate
to recover most of the associated
costs from its customers.
The Commission asked for
briefs on the docket and a decision is expected soon. Black Hills
filed a similar request in Colorado, which was denied by the
Colorado Public Utilities Commission in spring 2016.
***
Chris Dibbern is general
counsel of NMPP Energy. Contact
her at [email protected] or
(800) 234-2595.
Superior earns Community Showcase Award
Red Cloud receives
honorable mention
The City of Superior, Neb.,
earned the Showcase Community Award, presented by
Neb., Gov. Pete Ricketts during
National Community Development Week March 28-April 2.
The City of
Red Cloud,
Neb., earned
honorable
mention for
the award.
The
week is
marked to
celebrate
Member News
accomplishments of communities and
projects that help to encourage
economic growth and development. The award recognizes
communities that demonstrate
exceptional efforts in community development over the
previous five years. This includes
the use of Community Development Block Grant (CDBG)
funds for economic and community growth, along with demonstrated success in other state
and national grant, loan, and tax
incentive programs, including
the Civic Community Center
Financing Fund, the HOME
program, and the Community
Development Assistance Act.
Superior (pop. 1,957)
worked on many projects over
the past five years, including:
• An $8 million expansion
of Brodstone Memorial Hospital;
• A Downtown Revitalization that began in 2015;
• Earning the designation of
a Certified Leadership Commu-
Nebraska Dept. of Economic Development photo
Accepting Superior’s Community Showcase award is (L-R)
Sherry Kniep, economic development director; Derek Clark,
city planner; Jan Diehl, city clerk; Sonia Schmidt, mayor; Larry
Brittenham, utility manager and Nebraska Gov. Pete Ricketts.
nity in 2015;
• Improvements to the
facades of 11 local businesses;
• Construction of a $1 million roadway bridge, sidewalk
renovations and adding bike
paths; and
• The creation of a solid
waste management action plan.
Strong planning and collaboration earned Red Cloud (pop.
1,020) its honorable mention
award. The community’s accomplishments the past five years
included a new non-profit child
development center, scheduled
to open in 2017, construction
of an assisted living center and
renovations to the public library.
Superior Mayor Sonia
Schmidt and Red Cloud Mayor
Gary Ratzloff accepted their respective community’s awards during the presentation ceremony.
Tex Bradford announces
retirement
Tex Bradford, public works
director for the City of Gun-
nison, Colo., in June announced
his retirement. Bradford served
as a Municipal Energy Agency of
Nebraska (MEAN) board of director and on several MEAN committees for many years. The staff
at NMPP/MEAN wish him well in
his retirement.
Albion, Crete earn
EDCC designation
The City of Albion, Neb.,
recently earned its recertification
and the City of Crete, Neb., earned
its initial certification as Economic
Development Certified Communities. The program is sponsored by
the Nebraska Diplomats and administered by the Nebraska Department of Economic Development.
“We have plans and active
projects in every corner of our
community,” said Crete City Administrator Tom Ourada. “Being
an Economic Development Certified Community does nothing but
enhance and improve our ability to
maximize our opportunities.”
®
Essent
5
www.nmppenergy.org
July ‘16
This
month’s
Featured Champion Business
Hometown Connections offers integrated solutions for public power utilities
Owned by public power, Hometown Connections is the utility services subsidiary of the American Public
Power Association (APPA). Hometown Connections is a national resource for community-owned utilities as
a trusted provider of guidance and quality products/services. Through Hometown Connections, APPA members gain access to discount pricing from the industry’s leading vendors, as well as comprehensive consulting
support in the areas of organization assessment, strategic planning, governance training, market research, and
staffing. The Hometown Connections portfolio includes:
• Clean Energy Collective Community Solar Solutions
• Clevest Mobile Workforce Solutions
• Cogsdale Corporation Customer Information
Solutions
• ElectSolve Meter & Operational Data Management
System/IT Services
• Energy Depot Online Energy Audits and Calculators
• EnergyHub Demand Response Programs on the Cloud
• GreatBlue Research Market Research Services
• Hometown Connections Utility Management
Consulting & Research
• Honeywell Elster Smart Meters, AMI
• Katama Technologies, Inc.
• MFP-Connect™ Energy Workforce Solutions
& Compensation Studies
• Milsoft Utility Solutions Smart Grid Software
• N-Dimension Solutions Inc. Cybersecurity
• PowerSecure Distributed Generation, LED Street Lighting
• The Energy Authority Energy Trading & Risk Management Services
• Utility Financial Solutions, LLC Cost of Service Studies/Rate Design
The Nebraska Municipal Power Pool (NMPP) is the marketing representative for Hometown Connections
in Colorado, Iowa, Wyoming and Nebraska. Through marketing and sales relationships with the industry’s
premier vendors and a vast network of affiliated public power organizations such as NMPP, Hometown Connections has delivered products and services to more than 900 APPA members. For full details on Hometown
Connections products and services, visit www. hometownconnections.com or call (970) 682-4217 or Andrew
Ross at NMPP (800) 234-2595.
For a complete listing of NMPP Energy Champion Businesses, see page 8
MEAN Board approves energy charge credit
®
Essent
6
www.nmppenergy.org
July ‘16
The MEAN Board of Directors at its board meeting in May
evaluated preliminary end-ofyear net revenue of $8.2 million.
The Board voted to transfer $3.8
million of the total net revenue
into its rate stabilization fund,
designating $800,000 into the
rate stabilization’s general fund
and $3 million for future capital
projects.
The rate stabilization fund is
used to help stabilize rate volatility and to pay for power plant
capital expenses.
The Board also approved
an energy charge credit allocat-
ing approximately $3.7 million
in funds to MEAN Schedule M
and K Participants. The energy
charge credit is allocated based
on each Participants' proportionate share of total MEAN energy (kilowatt-hour) purchased
during the fiscal year 2015-16.
Champions are businesses and organizations
that support NMPP Energy’s effort to provide
products and services to members. Consider
these businesses when your utility or municipality
has a business need. If your business is interested
in becoming an NMPP Energy Champion, call
Andrew Ross at (800) 234-2595.
Champions Business Directory
Financial Services
Ameritas Investment Corp. (Ameritas.com)........................................................................... Omaha, Neb.
D.A. Davidson & Co. (Davidsoncompanies.com)...................................................................Omaha, Neb.
UNICO Group, Inc. and Midlands Financial Benefits (unicogroup.com)................................ Lincoln, Neb.
Nebraska Energy Federal Credit Union (ne-fcu.com)...................................................... Columbus, Neb.
RBC Capital Markets (rbc.com)............................................................................................ Denver, Colo.
Smith Hayes Financial Corp. (Smithhayes.com).................................................................. Lincoln, Neb.
Regulatory/Compliance Services
Power Plant Compliance (Powplant.com)................................................................................Oketo, Kan.
NAQS Environmental Experts (naqs.com)............................................................................ Lincoln, Neb.
Utility Services & Supplies
EnergySolutions, Inc. (Energysolutions-inc.com)...................................................................Omaha, Neb.
Hometown Connections, LLC (Hometownconnections.com).............................................Lakewood, Colo.
JK Energy Consulting, LLC (JKenergyconsulting.com)............................................................ Lincoln, Neb.
Kriz-Davis Co. (Krizdavis.com)....................................................................................... Grand Island, Neb.
NovaTech (Novatechweb.com)...............................................................................................Lenexa, Kan.
PDS, Inc. (PDSinc.biz)............................................................................................................Omaha, Neb.
Protective Equipment Testing Laboratory (petl.com).................................................... Great Bend, Kan.
REM Electric, Inc. (Davidsoncompanies.com)............................................................... Nebraska City, Neb.
RESCO (Rural Electric Supply Cooperative) (resco1.com) .................................................... Ankeny, Iowa
Solomon Corporation (Solomoncorp.com).......................................................................... Solomon, Kan.
Stanley Consultants, Inc. (Stanleyconsultants.com)............................................................Muscatine, Iowa
Computer/Technology Services
VentureTech (venturetech.net)............................................................................................... Lincoln, Neb.
Salt Creek Software, Inc. (Saltcreek.com)............................................................................... Lincoln, Neb.
Engineering Services
EPSIM Corporation (epsim.us)............................................................................................. Boulder, Colo.
HDR (hdrinc.com).................................................................................................................Omaha, Neb.
JEO Consulting Group, Inc. (jeo.com)...................................................................................Wahoo, Neb.
Lutz, Daily & Brain, LLC (ldbeng.com)......................................................................... Overland Park, Kan.
Olsson Associates (Olssonassociates.com) ............................................................................ Lincoln, Neb.
Sega Inc. (segainc.com).......................................................................................................... Stilwell, Kan.
Legal Services
Chapman and Cutler, LLP (chapman.com)....................................................................Salt Lake City, Utah
Spiegel & McDiarmid (spiegelmcd.com)..........................................................................Washington, D.C.
Telecommunication Services
Consortia Consulting (consortiaconsulting.com).................................................................... Lincoln, Neb.
River Oaks Communications Corp. (rivoaks.com)............................................................Centennial, Colo.
Upcoming Board/Committee Meetings
August 17 - MEAN Commitees, North Platte, Neb.
August 18 - MEAN Board/Management Committee, North Platte, Neb.
September 7 - MEAN Services Committee, Grand Island, Neb.
September 8 - NMPP Board, Lincoln, Neb.
September 15 - NPGA Board, Lincoln, Neb.
®
Essent
7
www.nmppenergy.org
July ‘16
8377 Glynoaks Drive
Lincoln NE 68516
NON PROFIT ORG
U.S. POSTAGE
PAID
PERMIT 402
LINCOLN, NE
Essent
N
e
w
s
l
e
t
t
e
r
RETURN SERVICE REQUESTED
Employment
Electric Lineman
The City of Kimball, Neb., is accepting applications for the position of electric
lineman 1 or 2, commensurate on experience and training. Work duties include
but not limited to testing, repair, building
and maintenance of the municipal electric
system. Lifting, construction, general labor
and upkeep of the electric system will be
expected. Must have or be able to obtain
CDL and pass pre-employment drug test.
Salary is based on experience and knowledge. A City application form is required
and may be obtained at City Hall, 223 S.
Chestnut Street, Kimball, NE 69145 or at
www.kimballne.org. Applications will be
accepted until the position is filled. EOE
Lineworker
The Board of Public Works City
of Cozad, Neb., is currently seeking
applicants for a lineman position. Minimum qualifications for the job include an
associate decree from an accredited line
school, two years distribution line experi-
A complete list of current job openings in member communities
is available on NMPP Energy’s website: www.nmppenergy.org
ence or any combination of the above,
CDL license or obtain within 60 days of
hire. Duties include: working on both energized and de-energized distribution lines,
building and maintaining underground
and overhead systems. The City of Cozad
offers excellent benefits and an excellent
working environment. Salary based on experience and qualifications. Send resume
to Board of Public Works, P.O. Box 65,
Cozad, NE 69130-0065, Attn: Britt German. Email: [email protected]
or call (308)784-2090. Position will remain
open until filled. EOE.
Electric Superintendent
The Town of Springfield, Colo., seeks
a full-time electric superintendent. Under
administrative direction, the successful
applicant will perform a variety of supervi-
sory, administrative, skilled, technical, and
maintenance work in the planning, construction, operation, repair, maintenance, and replacement of Springfield’s electrical system.
This person must be able to work in extreme
weather conditions including responding
to outages and be on call for after hours
and weekend outages and emergencies.
This person will be required to work with
the other town departments when needed.
This individual must have a minimum of 3-5
years of experience of being a certified lineman. For a detailed job description, please
contact Town Hall at (719) 523-4528. The
starting salary is $50,000/yr. + depending
upon qualifications. Resumes will be accepted until position is filled. Send resumes to
Town Hall, 748 Main Street, Springfield, CO
81073, or email townmanager1@outlook.
com. The Town of Springfield is an EOE.
To submit an ad: NMPP members can advertise job openings for free in the Essent newsletter and on the
nmppenergy website. E-mail your job opening to: [email protected].
Essent is published as a service to NMPP Energy members. The subscription rate for nonmembers is $50 per year. Copyright 2016, Nebraska Municipal Power Pool.
Send comments to: Essent, Attn: Editor, 8377 Glynoaks Drive, Lincoln, NE 68516 or e-mail: [email protected];
phone: (800) 234-2595 • Fax: (402) 474-0473 • www.nmppenergy.org
Publisher: Robert L. Poehling, Executive Director, NMPP Energy
Editor: Kevin Wickham, Communications Specialist