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.

Thank Goodness it is Friday!

This has bee n a very Busy Week!

We continue to negotiate language on LB 824 to allow private renewable developers and expedited process for developing generation.  With the changes that are being finalized by legislative bill drafters, the NREA Legislative Committee has changed our position form opposition to neutral.  This means we will no longer actively oppose the bill and will not seek additional amendments beyond the compromise agreed to. It does not mean we support the bill.  The wind developers are also in a position to not seek additional changes.  Even with an agreement between the Wind Group and the NPA and NREA, the bill may still have opponents. I will outline the final compromise when the amendment is officially finalized.

The Natural Resources Committee Chair has designated LB 824 as a Committee Priority.  This ensures that it will have the opportunity to be heard by the entire legislature.  It is not a guarantee of passage.

NREA Bills on the Move

The Natural Resources committee has advanced LB 736, NREA's bill to all all Nebraska utilities the ability to purchase the output of a Community-based energy development (C-BED). The bill has been recommended by the Committee Chair to the Consent Calendar.  Consent Calendar is a special agenda of non-controversial bills that have the opportunity to move through the legislative process quickly. 

On February 8, the Transportation and Telecommunications Committee heard LB 973, NREA's bill to increase penalties for failing to notify the electric utility when an over sized load is to be moved through their service territory. The bill also increases fines for manipulating the infrastructure of an electric utility. The bill was well received by the Committee and it is expected to advance next week.  This bill will also be recommended by the Committee Chair to the Consent Calendar.

More Cost and the Loss of Local Control Proposed

Next Tuesday, February 23, the Transportation and Telecommunications Committee will hear LB 1068, Senator Ken Haar’s bill that would require Nebraska Utilities to go to the Public Service Commission (PSC)  for approval of electric rate increases of more than two percent or an increases in fees including fixed charges (customer charges) by more than 20 percent.  Any rate increase could require approval of the PSC if more than two percent of the customers petition for a review.  All rates would need to be filed with the PSC annually. All of the cost to review rates would be the responsibility by the electric utility.

LB 1068 adds an unnecessary level of bureaucracy and cost.  Electric co-ops and public power districts have locally elected boards of directors who are charged with the statutory responsibility of providing fair, reasonable, and non-discriminatory rates to their customers. Customers have the ability to contact their local boards with concerns and have the opportunity for  input into the rate making process. Directors take this charge very seriously and all of their decisions impact them the same as their constituents.

There is no justification for removing local control and adding an additional layer of bureaucracy and cost for Nebraska's ratepayers.  NREA is strongly OPPOSED to LB 1068.  The Nebraska Power Association (NPA) is also opposed to LB 1068

Snowstorms and Hectic Schedules

Unfortunately the Groundhog Day snowstorm caused the cancellation of the NREA Legislative Conference and put a hitch in the Legislative schedule for the Unicameral. While no business was conducted on Tuesday, they did convene with just enough members to put the 18th Legislative Day on the books.  All hearings that were scheduled for February 2 will now be heard in the morning on February 9.  The hearing schedule is posted on the Unicameral Website.

The big downside of not having a Legislative Conference means not having the opportunity to take positions on bills of interest with the entire NREA Board participating.  The Legislative Committee of NREA will need to meet in a series of conference calls in order to take positions and will act on behalf of the NREA Board in accordance with our by-laws.

Even with bad weather the work must go on. On Thursday, February 4, LB 736 was heard by the Natural Resources Committee. LB 736, will allow all Nebraska Utilities the ability to purchase energy from a Community-Based Energy Development project.  The bill was introduced on behalf of NREA by Senator Curt Friesen of Henderson. Rick Nelson, General Manager of Custer Public Power District provided support testimony on behalf of NREA.  I provided brief testimony as well on behalf of NREA and the Nebraska Power Association (NPA).  The bill had no opposition and it is hoped that it will be considered for Consent Calendar.  Consent Calendar is a "fast track" agenda of bills that are non controversial and have no fiscal impact to the state.  LB 736 fits the bill! We are grateful for Senator Friesen's support on this issue.

It was a quiet day in the Natural Resources Hearing room, mostly because the Governor's Property Tax Relief Package, LB 958 was being heard at the same time by the Revenue Committee across the hall.  While our hearing lasted less than 15 minutes, LB 958 went well into the night.

On Monday, February 8, the Transportation and Telecommunications Committee will hear LB 973, NREA's bill dealing with the movement of over-sized loads and the penalties associated with violations for failure to notify and for manipulating the utility infrastructure. (See my 1/15 blog post). Niobrara Valley's manager, John Hoke will provide testimony on behalf of NREA and the NPA.  It is my hope that all of NREA's member-systems weigh in on this important safety issue. Our Bill sponsor, Chairman of the Transportation and Telecommunications Committee, Jim Smith from Omaha is keenly aware of the safety concerns addressed by LB 973. Senator Smith is a former employee of the Omaha Public Power District. Many thanks to Senator Smith for taking on this issue on our behalf.

I have the duty of serving as the NPA Legislative Subcommittee Chair. This committee coordinates the efforts of all the electric utilities on legislative issues of interest to the electric industry.  We have been working closely with Senator McCollister and representatives of the wind industry to work on language to modify LB 824 (See 1/27 Blog Post). We received a copy of their "compromise"language on Wednesday and were told we should reply by noon Thursday. When you are trying to coordinate multiple organizations to come up with a response on a complex bill such as LB 824, 24 hours is not much time. We were able to extend that deadline until noon today.  After much "cat herding" and four conference calls and multiple drafts later, a response was sent to the bill sponsor and the Committee Chair.  Now we wait for their reaction, as well as the language addressing concerns of the Nebraska Power Review Board. This is not a simple process. When it comes to making fundamental changes to laws regulating electric generation and understanding the impacts it will have on electric customers, it is best to take a thoughtful approach and not try to rush the passage.  Without significant changes as proposed by the members of NPA, the industry would need to oppose the bill.