NREA Member Engagement at the Unicameral

One to Increase Red Tape and One to Reduce Red Tape

More Red Tape

The Transportation and Telecommunications Committee heard LB 1068 yesterday afternoon.  LB 1068 is Senator Ken Haar's bill that puts rate issues for all public power systems under the Nebraska Public Service Commission (PSC). The NREA  and the NPA Oppose LB 1068.

NREA directors and employees from Elkhorn PPD, Stanton County PPD, Cuming County PPD, Cedar Knox PPD, Wheat Belt PPD, Dawson PPD, Burt County PPD, Butler County PPD, Norris PPD, Polk County RPPD and NREA attended the hearing.

Outstanding testimony in opposition to the poorly drafted bill was provided on behalf of their organizations and the NREA by Bernie Fehringer, Wheat Belt PPD and Paul Neil, Dawson PPD.  While good testimony was provided by attorneys and managers of other utilities, it was critically important to have duly elected board members testify to the efforts that take place to undergo cost of service studies and the rate setting process. Thank you Bernie and Paul!

In addition to those in attendance many other NREA members provided written testimony in opposition to LB 1068.  Those letters will be included on the record for the hearing.

The majority of those in opposition to the bill testified to their opposition to the increase in customer charge rates implemented by Omaha Public Power District.(OPPD). OPPD is currently undergoing an incremental (over five years) increase in their fixed charges (customer charge) so that it is more in line with their actual fixed costs.  This is something most utilities in Nebraska are doing or have done in recent years.  Unfortunately for OPPD, they became the lightning rod and Senator Haar's reason for introducing LB 1068.

Credit should be given to the Transportation and Telecommunications Committee members for their patience and attention to the complicated topic.  We will be asking the Committee to Indefinitely Postpone (Kill) LB 1068. 

Senator Haar stated in his opening testimony that he didn't believe the bill could advance this year and that he intends to introduce an Interim Study Resolution to look at the issue. Personally, I think the opposition testimony was clear, it does not make sense to add an additional layer of bureaucracy to a process that already includes consumer input and thorough evaluation of costs and needs to maintain our electric utilities so that we may continue to provide low cost, reliable electric service to our consumers. An interim study seems unnecessary and passage of the bill would be foolish.

Less Red Tape

Today the Revenue Committee heard LB 913, Senator Jim Smith's bill that would  adopt the Facilitating Business Rapid Response to State Declared Disasters Act. Under the Act, an out-of-state business that assists in repairing, renovating, installing or building infrastructure related to a declared state disaster or emergency would not be subject to registration with the Secretary of State or withholding or income tax  registration, filing or remitting requirements.

During times of emergencies such as ice and snow storms, tornados and other such disasters that can damage electric infrastructure, the primary concern is getting service back into operation. When that includes the need to have out-of-state utilities provide assistance, they should not have to be concerned with registering with the Secretary of State or identifying the time spent working in Nebraska so they can go through the added step of filing an income tax form in the state.  The exemption would only apply to those utilities asked to provide assistance and only when there is a state declared disaster. The Nebraska Department of Revenue believes the costs to implement LB 913 would be minimal.  There was no opposition to the bill.  I provided testimony on behalf of NREA in Support of LB 913 at the hearing.

Drones

With the rapid increase in unmanned aerial system (drone) technology, there is a need for regulation to catch up to the increased use. The costs of using drone technology has dramatically decreased and the use of the technology is expanding rapidly.  There is a need to find a reasonable approach to allowing the use of the technology for beneficial purposes, while still protecting personal privacy.

Senator John Kuehn has introduced legislation (LB 720) that would require express written consent for the capture of images, video or sound by a drone operating less than 200 feet above a property. Without that consent a person is presumed guilty of invasion of privacy. As drafted, there is concern that the bill may make it difficult or impossible to use drones for monitoring electric utility infrastructure.  This certainly was not the intent of Senator Kuehn. The senator is hoping to use LB 720 as the opening dialogue to determine if and how Nebraska should regulate the use of this technology.

 The bill will be heard by the Judiciary Committee,  Thursday, February 25 at 1:30 PM in room 1113 of the State Capitol.  NREA will be present at the hearing to learn more and to possibly testify in the neutral capacity to draw attention to the beneficial use of drone technology to reduce costs in monitoring utility infrastructure.