Annual Report - Nebraska Energy Office, 1996govdocs.nebraska.gov/epubs/E5700/A001-1996.pdf ·...

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Nebraska Energy Office Annual Report

1996

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STATE OF NEBRASKA

February IS. 1991

Dear Nebraskans:

EXKCUI"II'K S1JTT!: P_O. "0' 94U!

Li"",ln, N_. M:I(lIJ.4843 Phone 402--41 J·lloW

Fa>. 402-<17 j·6()ll

A c()I1 linuing success , tory is the Enc'lY Office', Dollar and Energy Saving Loan progT"dm. As of June 30, 1996. more than $63.11 million havt been loaned 10 N~braskans for more than 11.000 enc:liY effICiency projecu. This LOiln fund was capitalized w;lh S 11 ,61\ million in oil overcharge funds. 1hc loan fund and SIS.7S million in loan "'payment, h.vc Icv~ in ucess of $30.42 million from the $laic', privalc lenders.

Because these fund< wee giv.::n 10 the StlUc to pmvidc restiMion to all Nebra<lrnns injurW by oil company pri~ing Qvc.dwges, it is only fitting that more than th'"-<iuiltlCl'$ of the loan. made to date hve been for energy effICiency im provemem. in the homes of Nebraskans, The balance of the leans have fi nanced improvements on farms and ranches aoo in small bu'inesses and local government ~nd nonprofit buildingj, The 1Q<lrt. continue to stimulate economic ""t ivily and arc responsible fOf creating the equivalent of 1,253 jobs in communities acmAA the state.

In December. the DolIN ami Energy Siv inr Loan program was selected I~just one of thn:c ra;ipients of the U.S. Department of Energy ', 1996Stak Energy l>rogram Award Only $Ute:

efforts '"that ronsistently 4,kmnru;tratc: prugram rommiunmt and ... make. signirll'l/Il impact" were sclectc:<! form:ugnilioo.

Aha rM ewonhy i. the vel)" premise OIl which the loan fund was esu.b liihM: prese,vation of capia!. NebrllSb, unlike many OIhe, .mltS, placed a majority of the one-time oi l over~harge money into revolvinr funds. so that the capital would continue to benefit as many Nebra'~ans a, possible . Nearly 43 percent of the fundi received by the .tale have been allocated for Dollar and F.nergy Saving Lwns.

NQrjy 15 yean ago. the E~rgy OffICe pioneerr:d in crealin, Iho: nal ion', r..,.. oil overcharge funded loan program _ the Electrical t..oBd Managernenl Resource Fulld - detailed On page g. To date, this mode! e£Jun hu ... vcd Netnskl f"ltepllyers nearly 56 million from a $50,000 investment. Only now. are other Slates adopting the revolving loan model on which these .uccessful program. are ba<td.

Detail. of the!ie succe,ses and OIher a,ency activities can be found in the Nebraska Energy OfflCe's 1995-19% AIIII""/ R~porr. It i. with great pleasure that I present thi. Rtporr to you.

Sil"lCefely.

E. Benjamin Nelsoo Governor

A.F"""~W",,""'_' _ .... _ .... _-

Table of Contents Secllon

Weatherization Division

'''' Number

1995-1996 Highlights .. ............ ... .. .... .. ... .. ... ..... ... .... 1 SInce , 979 .. ....... .......... ................ .... ........ ... .... .. ..... 1 Homes Weatherized in 1995-1996 ........ ................ 1 Other Oil Overcharge projects .............................. 2 Regional Training ...................•••••.......................... 2

Energy Financing Division Sd\ooI District Efl9rgy Efficiency Program .......... .. 3 Instijutiooal Conservation Program .. " ................. " 4

Energy Projects Division Suite Energy Program .. .... ...... ...... .. .. ....... .. ..... .. .... . 5 011 OI/ercha'~ Funds ................... " .. ..... ............. .. 6

Energy Efficiency, Renewable Energy, Pollution Prevention and Other Energy Concerns

CMna!eWl$e ••.... ..... .•.• . "" ••. ..• ........ ...•.•... ..... .... . 12 H~h Levlll Nuclear WUle TrarI$portation

end Storage ......... ... ... .... ... ... ..... .. ... .. .... .. .. .. ....... 12 Hydropowttr Resources Assessment .... .............. 12 National Energy COda Compliance

on New Home Construction .... ........... ....... ........ 12 Wind Resource Assessment ........ ... ... ................. 12

Ethanol and Other Alternate Fuels 1995-1996 Highlights •. ...•••••••• ••••••••. ..•••••...••••••....• 14 GovefTlOfS' Ethanol Coalition .. ....... ................. ..... 15

N atural Gas T echnical Assistance Munielpal Natural Gas Regulation Ac! ........ .. ....... 16 Technical Assistance ... ... ... ... ... ... ... .... ..... .... ........ . 16

Grants and Legis lation Grants .. ......... ........ ... ..... ............... ...... ........ ......... . t7 Legislation ........... .......... ...•. .... .................. ........... t 8

Fiscal and Organizational Nol es Financial ReviEMr .••••••....•.••.•. .•.•••••... ..••.•..•••.••....•• 19 Organization .... .. .. ...... ... ....•... .......... ............... ... 20

Issues and Trends Imrodootion .. ... .... .. ..................... ................ ..... 21 Energy Costs and Consumption ......................... 21 The Top Story: Nebraska', Ch.anglng

Tran.portation Pdure ........ .................. .......... .. 21 Eiec1r1ci1y ........... .. ...........•••.••. ..•.•••... ...... ......... ... .. 24 Nuclear Power and NlJCI&ar Waste ..................... 26 Natuflll Gas ..................••.......•..•••................... ..... 29 PetJOIeum .......•... ...... .... .....•... ......•.......•••.. ..... .•.... 30 Aftemate Energy ................................................ .. 33

CotfTENT$ oUIO FIGURES

Table of Figures Figure Number '''' Number

1 Weathorizallon Funding Sourcos. 1979·1996 ...... .. 1

2 Number of Homes Weatherized by SOUroil8 01 Funds, 1979-1996 ........... .... ........ ...... ....... ... ........ .. . I

3 Nebraska Weatherization Assistance Program 5efvice Areas and Homos Weatherized, July 1. 1995· June 30, 1996 .............. ........ .....•..•.. . 2

4 School Distriel Eoergy Efficiency Pro<;Jram and InstiMional Conservation Program Loans. Grant. and StlJdles by County, 1995-1996 ...................... . 3

5 Gasoline Equivalent Saved by Stale Energy f>rogram Activities . 1985-1995 ..... ....... ...... ............. 5

6 Nebraska EnIIfIIY Settleme<11 Fund ..... ................... 6

7 Oil Overcharge Contract$ ....................................... 7

8 Oil Overcharge Funds Invested in Types 01 Ootlar 3. Ene<gy SaWlg Loans ... .......... ... ......... ... .... 8

9 Cumulative Savings of Communities Borrowing Electrical Load Manage-ment Resource Funds, 1963-19913 ...... ........ ... .. ..... ....... ..... ...... ... .... 8

10 Governors' Ethanol coal~lon Membor Statu ...... 15

11 Areas Receivinll Of Appea.linll Natural Gas Rate Requests In 1995-1996 ..... ......... .................••.. ..•.. 16

12 Where The Money came From, 1968·1996 ......... 19

13 Where The Money Went. 1988-1996 ................... 19

14 Nebraska Energy Offlee Organization . __ ... .... .. ..... 20

15 Tot<Il Enorgy Expe-nditures, Nebraska. 1970-1995 ............. ........ .. .. .... ................ ..21

16 Transportation Energy Expendituros Compared to All Enargy Expendrtura,. Nebraska, 1970-1995 .. . 23

17 Motor VahicIB Miles Traveled in NebfllsM. 1978--1995 ......................... ......... .............. ............ 24

18 Paulino Moore 3451(V Transmission Route •.. ..•••.. 26

19 Nebraska Nuclear Power Plan! Locations by County, 1996 ..................... ............... ........... .... ..... 27

20 Proposed Nuciear High- and Low-Level Waste StOfllljEl Sites In U.S. ••• . ....... ••••• .•• 28

21 Nobraska. Natural Gu Production by COUflt)'. 1995 ...•.. ... .. ....... ........ . ... .... ........ 29

22 Crucle Oil Productio .... Nebraska, 1939-1995 .. ...•.. 30

23 Nebfll&ka Crucle 0;1 Production by County, 1995 . 31

24 Avern.g& Annual Wind Speed in Milea-per-Hour. Nebraska. 1995 .. ........ ..... ... ........... .. ..................... 35

This Annual Report It 101' the period Ju~ I . 19-95, through June 30, 1996, except where noted.

Weatherization Division

The Wealheriwlon Division admini.1CfS the Low [DCOme

Wtatheri~ ion A$IoiSlan<:e Prognun - . feder.II~·funded prill""" for weatberiLin. bomes to H~. money and .,..rgy. lbe &ere OffICe i ..... pon.ibl. for insp...::li n, about 20 percent of the homcs - about 216 - thaI arc wealMriu<l and for rn""i LOrin, and alldiu. , the: $ubJranl«', primorily commu~il)'

l<:Iioo "ItnClU . .. h ieh Klually make lhe ho::>m< ...... bcriUlion imprO~,*nll.

1995-1996 Highlights

In 1995- 1996. 10111 (undin, fOf the program w~, $3,369,634 . 'The Depamnenl of EMrtly', Low [r.:0l'JI" Wealhcrizatiu .. A"i,tanc. Program provided a loul tJf $2.296"$9 iUId thc: Low Ino:omo H""", Encrl)' Ai,illallCe PI'"""",. adminiscere<i IhroogtJ \be N.Ins"- J)qlmtmcDl of Social Services. . upplied • IOIaI of S 1.038.97., The boJOftCC of !he funding $34.101 - eaf\'IC from theSllipper Wdl oil owKlwie U\ISI _ lit

Number of HomtIs Welltherized by Sourc •• 01 Funds, 1979-1996

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1996 ANNU,lL R fPOIIT

WNltttflutlon Funding Sources, 1979-1996

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TOIal fu ndi ng for lhi. acti vity dcc",asod nearly 12.5 pcrecnl ffom the prey;"" . yeu. Da.""ooe, in funding from the fed.r1ll Ikpanmem of Health and Human S"",ic ••• nd oil ovcn:horgc \rp,1 funds were partially off"'" hy a fundi"1I incruse from 1M U.S o.panmem of&.o,l)'_ ~ only overcharge funds rcm.'ni nl to be: usod by !he Wn lheriul;OII Assis\.O."". Program ore Siripper Wdl monics. Fi,ure I . lIow. the fundi", amou nts and source,.ince the proJlI1lm be:g~n in 1979.

Since 1979 Since ,he Low Inc(Imt Weathtril.alion A .. i5l~ Provam be, ... operation in the

Slale in 1979 . ....arty 162 million in federal and oil ovncbItrF funds have ~n spe:n11O weatbtriu the homa of Iow· i"""",e eklm),. d isabled and Olhen..

In the pall' 16 yun. 4S.753 IIomeo have rKei""" fIft W«lheriuIiM {Ott tig"'" 2). Howev .... I n n,imllCed 62 .000 Nelnslm homes remai n el iJibie for lIIi .... ~

Homes Weatherized in 1995-1996 A ,otal of l.40 llIomes.

were weatherized in fiscal yew 1995 · 1996. Tn keepin, with the o.geney·, priority 10 sorve No"""'k.o.' , d il'1"I)' communi'y IhHl .. gh the Low Income Wca,h<ri,auOII A."i ...... ""

,iIt div;";on J cldaly

~_ .. _ .... --~~ or ~ than :lO , ...... r prrcen1 of III homc5 impro_-..t -,

Till! ,li!Il""'·,:--·_·-,. durina lhis period.

The map, fi,IIl't), W>w. tho .iM Wealherization A .. ,iu...,,,,,

W r ATHfAIZATION D,v ,sION ,

Nebruka WHtherlzatlon Au lttane. Program s.rvlce Ar .... and HOITI4Ia Wutn.r\zlld, July 1, 199!!i - June 30, 1996

---.-• ...,-1" •• ._- I-':J=.~~~ __ L...l. -.- ......

Program ",rvice ... sOlld!he numbcrofhomel ...... tbtrizod in '''''h area from July I , 1 ~5,through Ju". 30, 1~,

Horne improvemenls made lhrough lhe prtJirom uv.d Nebra,kan, a lOiaI of $1 91 ,937 in avoided ."''iY COSIS duri ng 1~5- 1~, Tho he""e im!"'overuent. represent a ooetime invo.lrnent th. t m,»,t lik.ly wi ll yield a rate of return fut' al lo .. t t ..... nty yea .. ,

Other Oil Overcharge Projects In late 1995, the .i.n~y converted the Wutheri Uli"" A",nance PrOJruII Loan. for

landlords unable to pay ""._half the cool of the impro,'."""nts to We.theri zation Enorgy Efli<ie nl Mortll"i"' for IOOn-tOr M home buyen..

lbese IIC W marta..,.. 10K limited \I) tho!< families with i"",.o>," rangln, fmm $11,6 ](lfor a family of ooe to $)9,120 fOl' • fami ly of "!N, Tho below-mart.L-rate mortg",", &llow prt)$poclive home wyers to make r>«:et.<ary <""&y-,,,,";n! home improvcmenlJ withou, . 0;linll the rosL 0 1 the P'>OMhly mortgoge poy .... n!,

Pt.trwk "><"';Iali •• the W.atheri • ..ooo EnerllY EffociellOy Mortgage£<:_ from hvo SOUL"CCS: S loo,OOO from funds fOl' Welthcri/.aLioo ..... i.w.ce Proeram Uodlonl Loans - S~.ooo from. 1991-1992 U,S, DtpllfUJltnt of """'.f inantive cram IIId ~.ooo in UJOII oil ............. fu ..... - Illd "S.82J from a oroc-li"'" fcdcnl o.panm..nt of EnetxY 8fUl1 ~ivc:d in 1995, 1996 that dilUibuled IftviOU<ly uncommitted weMberization fu ..... 10 the Wiles,

.1996 ANNUAL R l l'OAT ,

Regional Training In May 1993, _ than 250

..... lberillOlioo pof.""ior\als from lour Mid ... = .... lWeI plhend iQ UlICoin for • f.,..,--day IJlIiIlinj rottf~nce. Thil"" lhe lim lime therottfc~1ICC had been held in Nebraska. Confc~""," participo,n~ learned how to

improve aspects of the Low llICOInoC WcatheriLation AsliIUnCC I'f<:I1f'IIn It the \ocaI level,

Tho conf""",," was IiIlallCfll ,.,i.h • U.s. [)q>arttno:nl ofErIU&y,...,1 of $87,2111, However, ooly S50.289 Will ..,.,nl OD conf.rence ""tiviLieo, Tho ~maini n. fund> in the irlln r, $36,989, ..... re .pent this reponing period on tnoi nin, opponunitiu for wntheri'rIOlion prufc .. iooo1 . io Iowa, Kansas, Miuouri and Ncb.-a, k.

During the rcp""inK period, the lIj.rocy all!<) received a $10,000 grant frun, the rcgi"". 1 office of the f.d ... l cMtllY . g.IICY 10 provide technical trainin , for w.OIl1eri • • ti"" prof.ssional.;n the rellion, Since1KJ "'1I'ono1 !fai nin, was !",ovided duriD, tile period , the"" fund. wi ll be LIsed in 1'1%-1997

WEATHERIZATION D IVISION

Energy Financing Division The EDCTgy Fi~ ancing 0;';';00 operates

federal and stale program. which finance energy impro.'etn<nt< in 1>onIc" bu,;ne.",., farm. and """,1Ie.s, no,,;" g homes, ",,'em""'"l bui lding" school , and hospital"

• School District Energy Efr",jency

""'~ • Institutional Con=,al;oo Program • Dollar and Energy Saving luan

""~ • State Building Revolv;ng Fund A full report (.,ube Dollar and Enc-gy

Saving Loan Program and Slate Building R,,'olving Fund i. found 00 page. 7·8 and 10 respectively.

Collecti vely. These programs.,.., designed to reduce the eost and use of eneTgy in building. and sy.tems. Durinll the lime the .. programs have been in existeDce. Nebraskans have .avo;:! millions of dollar> through more efficient use of enagy ""'>UTeC'.

In 1993, !he Legi,la1llIe broadened the type' of finandng to iDelude Joaru fr:>r energy ' tudies, for !he purd,,,-,,, or conyemoo of school vehicle, 10 aperate on alternate fuel> and for in,tallation of alternate f\lOling focilitie"

For The flrSl 11 ye""', ,I"'e oil.oo natural gas severance laxe, ftnaDeed The program, From 1991 Ihmugh 19'K>, The program wa, sclf. ,upporting , making loan, from a revolving fund copil.lized f,om loa" repaymcn" and interest earning',

School Districl Energy Efficiency Program July I , 1995-Juna30, 1996

EnorvtImP'O .... M .. ' L ... n.

L ..... ol .. u.d - ---

School District Energy Efficiency Program

11lrough JUDe 1996, more than $32.8 mil1 ion in grant' and lo.n, have been made [0 the ,tate', public <chr~ll 'y<lem. to financ. energy ""ing ,tLldie • ."d buildi ng Improvement< ,

In 1981. {be Nebraska Legisl31uTC cre.ted the forerunner ( 0 the

Energy Office ,taff reviewed applicOlioo, for grants and 10.",. cr>nd""ted technical review, of the planned improvemenl" monitored prog""" of !he building modiflCalion,. collected loan repayment< and &naly=! energy con,umption repon, filed by the "'hools.

Sch,,,,1 District Energy Efficiency Program _the fin! "" _going ,{ate-,upponed program to

weatherize Idr>derganen through twelfth grade public ""bool. in the nation . For !he first f'>IIT years, only matching grant. fOT <neTgy conse,y.tion building improvement< we,.., gi"'"_ In 1985, grant< of up to $2.500 PC' school fr:>r engineering 'lUdie, we,.., added. Beginning in 1986, the energy COII.<o,vali,,., iml'"wement' portion of !he program was con .. tled from gran" to no-intere.>t loan,.

School Dlslrlct Energy Efficiency Program and Instllu\Jonal Conu-rvation Program Loans, Granl. and Studies by County, 1995-1996

LE G END 1 c,:;c,:;i~177 ~-rurt.or ~ ~ ~ ""'" ---• SoMoI Dislrlct Ene'(II Eliciency L.oano

.A SoMoI Dislrict E",,'Vl' Elliciency SIWy Gr...u

• n.titIJionaI eor--.ation f'ropn Glom.

ENERGY FINANCING DIVISION ,

In May. 1995. lhe Legislature ,'o!ed 10 c",ate a (<<,hnology fund for Ihe 'Iale', ""hools, The fund will be fin.nced with proceed, fr<>m lhe Sdux>1 Districi Energy Efficie""y Program, Over the next 14 ye .... , lhe agency wi ll tollect I""n payments from the s<nools ond InU!sfer lhe funds to the Department of Education for issuing ,""hnology granls 10 the s<11oo1',

No-Interest Loans From Ott.mbe,- (986. (hrough June 1996. more Ihan $14.9 million in no-inlerest

loan, bne been made for 393 pmjcct.s """". the state. The I""n portion of the program was designed so thai a school diuric! rq>aid the I""n

with all or a portiOll of the "nc'gy dollar n"ings it received from completing the improvement.

At the end of the "'porting p<riod. June 30. 1996. the program', loan pool contained $13.2 million. Currently, 155 school disoricto h.ve 356 loans in "'payment, lotaling $7.4 million, In 1995-1 996. the agency appro,'ed loon. foo- energy improvemenu for 60 buildings in 21 school dimict' amounting to S3,645 ,S 16.

Projec(s funded through the loan program must h"'e had an anticipa!ed payback perioJ "fle" than their exp<c!ed life. The loon period could have been up to fourteen years. To dale, 19 s<hool district' p.id off loan, lotaUns $715.796.

The table on page 3 li,c, the !leh",,1 districts roceivinjj loan funds in this period.

Engineering Study Grants The School District Energy EfficieDCy Program al<o prmidcd grants up to S2.500 per

building 10 finance an engi neeri ng 'H>d)' and "'ron on the building and its energy ·using

School District energy efficiency Program July 1, 1995-June 30, 1996

Engln_ lng Study 0 ""'" - -~- -.......... _ .. - _ ...... _ ....... _-, .. - " .... ___ __ 10 _- __ n .... --- _ ....... _ ...... _ .. . - - " .. ,--- " .. .. _._ .. _, -, ,, .. ____ .. _ _._ (t __ , •. "'" _ """"'M' _ ...... ___ .. '- , ... "'"""" __ __ .... __ .. ... 1_ ....... _ .. »" _ ....... _"""" "" _,, ... _ .... .. L _ ,.., ---- _ ..... _ ..... . - -_ .. "" ___ '" ___ .... _ ..... L _ • .., 1Il''''-_'' ___ ,, _ __ _

'yst""", A regi'tered professional engineer 'J< architect must have cond""led tile .rudy. which identifies all potentially coot-dfoctive conservalion impro,em<nc<. a. well a, energy-.. ving cllange, in operation ond mai nlen, n"" p<oCed~ .... ,

During 1995-1 996. lhe Energy Fin.""ing Divi.ion i"ued engineering >looy grants wali ng $90.350 (0 10 school districts for studies in 37 building •. Tho tahle at left lisls grant-reeeh'ing school. and figute 4 on page 3 identities the location of lhe schools receiving the grant"

With tile conclusion of the progranl. 489 grants totaling $ 1 109.924 have been awarded u) public school.ystem, in the state.

informalion!o applicants. ",view, ond ranks applicalion., . ubmits projeel propo .. l, 10 the U.S . Department of Encrgy for final tovicw. monitor, the prollress of appro"ed projects and collects energy use informalion afler lhe project i. compleled.

More than $10 ,1 million in fedeJa! funds have been awarded 10 the ".te·, schools.nd hospitals since Ihe program bec.me operational in 1980,

Final Grants In AuguS! and Decembe,- 19<J5, the U,S,

Department of Energy awarded $266,267 - $ 16.6 15 for engineerin, 'ludic' on 10 builJings anJ S249.652 for energy consen'ation improvemen(, in 26 buildings. The project, being funded ore ..peeled 10 cost $472,718. but arc expected (0 save $88.369 yearly in avoided 'llCTgy c,,.l>l, The t.ble below ~"s rocipient.s of both engineering . tudy and encTgy improvement granl<.

In 1996. CClngtess did not appropriate any fund, for progrnm admini.tr.t!inn (J<

gr.rnto to r.chools .nd ho'pital" How,,·er. the goals of the program were

included as possible .!ate level ao:;livilies under the Stale Energy Program (>ee page 5 for "",re inf(>rmalion OIl thi. program).

Encrgy Office staff will cootinue to provide .. sistance to former gran! ,ecipiont, os previously funded projecI' are compl.!ed.

Institutional Conservation Program Institutional Conservation Program Grants

July 1, 1995-Juoa 3D, 1996 'The In"itutiOl1aJ Conservation Program

provide, 50150 federal matching gr.rnt.s to nonprofil hospital. and public and rri,'ale schools. eilher for engineering ,tudi .. 10 identify cost-effective. energy-saving building impro"emenl' or foo- making energy improvements in the building., Tho £neTgy Office provide. program

, 996 ANNUAL REPORT

•

- _... - _... - ---_.-_-""""" _ ... _- -_ ..... _ ...... _ ...... - .... --- -- .. -_." .. _",,-_. __ . '"'' '-t, "-____ _ ....... _, , .. , .... .. ,,",. __ __ " . 11" -"""" _._-" .. .. _ "" - , -, .. _ ..... __ ...... _ ...... - ... - .. ". -""""_ ..... __ .... - ,- ----""'_. '" - , ...., _ .... _ _ __ .... _ .,. ___ _ ,_,_ _ ...... _ ..... __ :tm -'-""""' ... _ ....... _ .. .... __ ... - -_ ..... _ ...... - .... ""._,-,-- ",. """" .... --- -- " .. .... ,," '-,, - - - "" - , .. - - _ ... _ .... _ ...... - "-'" """""" .... " ... _----"_ ....... _"' -,- _ .... _ ...... _ .... .. _ .. ,,"' _._--- _ ..... __ ...... _ .... .. _ ...... _- _., - . __ ._._._._,_ .. " .. _ , '-"" -----_... - '- _ .. ... '" -.-.~ .. ""-- - , _ .""""- - ,.- _ .... __ .... _ .... _ ..... - --.'" """'- ,,_ ........,

Energy Projects Division n.. EnerID' Projects Divjsion i,

responsible for administering tho federally-funded State Energy Program created under tho Etltr8Y Po/iC}' ConserwniOtl Act of 1975 . 'The program .!low, tbe ,{ate to use its di""",lion in providing energy conservation .. ""ices. oot {be Energy Office mu,t submit an annual pllln to the U,S. Department of Energy for re view and approv.L

In gene ral , ogene} staff operateslhe program direclly. Qcca,ionall y, the agency may work dClstly Wilh outside contractors hi",d [0 perform spc<;i fic projects. The Division is ai,,, ""pon, il>l . for preparing annual energy "",;ng reports, N.br(l3~a Energy Statistic", (be agency', Annual Report, the N. brrua. Enugy Quamrl), and federal Or court repons "" oil overchorge program"

During calendar year 1995. !he federal ly-funded program produced annual energy saving. of 6 .972 !rilUa" Bri{;,h lhermol units, whid;s equivalent to nearly 56 million gallons of , .. "linc. Figure 5 ,how, estimated energy •. wing. over the past II yea" as • result of . pc:cific project •.

• Oil overchargo projoct managemenl • Energy .bonage managemenl and emergency propatedne" • Energy policy impletUntation • Ed\lClltioo and informalion

Federally-Mandated Projects According 10 the En"xy Policy Coru' l"IIation Act, the El'IO'gy Office muS! undertake

mandaIOf)' proj""" in the 'pc:cific areas of procurement, t.-an'portat;OD, lighting standard., lhermal <fondant, and right-Inrn-on-red, "The "-'leocy .ubmits plan. to the rederu governmenl for its review and approval of projected a.;;tiviue< in the« arc .. ,

• "The Energy Office coordinates and publi,hes a rideshare roster for .tate employees ,;coking to carpool. Nearly 100 .tate wor~ers arc li,ted o n the roster from oornmuniti., surrounding Linroln ,

• Nebt-a,ka sati,fi.d lhe right-tum-on-red mandal'.-y in I ~73 when the Legis]ature pa.ocd bdh right·turn-on-red and left-turn_on·red legi,lation,

• Nebraska ... tidied the mi nimum mandatOf)' requirements in 19S0 when the Legislature passed thermal emcie""y standard., lighting efficiency .tandard, and pmcuremont procedures for "ate government

Oil Overcharge Project Management Exxon oil o,'.",harg. project. are managed as Stale El'IO'gy Program project., ("'.

page. 6- 1 I for a fun description of projects finaoced by oil "vercharge furtds) ,

Energy Shortage Management and Emergency Preparedness

As part of lhe agency', energy 'hortage and emergency acti"iti ••. the Energy Office routinely monito", , uppli .. ond po;ential disruptions. Minor fuel o utage, an c']>eCted

State Energy Program Gaaollne Equivalant saved by State Energy Program ActIvItIes,

1985-1995 (Milliona of Gallon.) Since the inception of

the Stale Energy Program. the federal g,w<rmnent has granted fund. on an 80120 ma"'hin~ basi. to the stale" In 1~5- 1996.

NeJm,.,;k~ """,ived $228,500 in fedaal fund, which were matched with $45,700 in ,!ale ~veranc. ta~

fund •. In I ~5·1996, State

El'IOt8Y Progtlm pmjoc," included:

• Foderally·mand3ted

"",,",

Pfoject Tno- ,~, ,~ ,w ,- "" ,- '''' 'm ,m leg. ,~

Agri<Uturai Energy - , •. - 0.744 .- 1.240 1.240 ,~ 1,'00 1,.00 ,~ ,~ ,~

Doiar and Energy Saw.g loM Program • • • • • 0.201 '.m 2,201 ,~ ,~ •. 021

liundro<1 _ 10 01 ~ • • • • • • • 0.207 .~ •. m •. = ---~ ...... • • • • • 0.011 Om8 .~ 0.072 .~ 0.1 03

Nobrukol CormuVty ~"''9Y~

'- 0,248 .~ .~ .~ O~2 O,aII' •. = .. - .. - 0,389 0.389

o.n.r.. TroIIio ~flIm • • • • ,= ,= ,= ,.~ ,~ 1.1103 ,~

11 .072 ",9(\4 18 ,7118 22._ 26.060 30.144 33._ 36.1!-I0 4O.~ 44.004 03,592

Totol GIllon. 01 G .. otl". Sa_ (In mUllon,] 11 . 15 1S.M<! ZQ,1+1 zun 2!!.S1$ 33.85. 38.2111[ 4 013 .z.m S2,1loH 5$0882

.... ," ---"""'" "'"'" E NERGY PROJ~CTS D IVISION ,

during planti n, ..... harvntin,limcs. Monitori", i. m<II"C inlen". dun"l lime< wl><n ..-I demand, _ high ~ of sudden _ath<r duo", ..... Conlinaency p\aru; de""kIped in prior y<an provide lhc: .1Jo;:I....., for ... y ne«sW)' Cnc<JY emerJmCY acli"';l ies.

o...on& me "'portiD, pcriDd. a Jaooary 1996 ""inltr l torm with 10 mile per hour ""indl. blowinl and drifting snow, icc and biu<rl y cold wind clUlls cau.oed powe< outageJ in mote 1h11l4(l Ncbra<b. townJ. The Stale Patrol and Nl\innol GuanJ pro~i<led ... i!lance 10 mC)(OIisu "" the road and ""idcna in oomes wllhoot l>eal alld electricity.

Energy Policy Implementation [0 1992. !he Energy Policy Council f<><warded 10 the ao,emor lhe NobraJM EJtorgy

Policy PI",,: ROCOMMl:MDlionJ ro tho emomer for hi. consKl<n.UI)II . By the end of thar y .... the Go"""",, anlKlUnced tho flnl . nc:fBY policy plan for the

>l~- M EII.rty AcliM Plmtjor N.b"",ta. Tho " " I"" Plmt lCIVed.os the rom >lq> in an OIl·JOin, proc"' 10 pIuI and implemenl err..,.,,,,, propantl iO Id,·ance COM<:IValion

and efrocienl ua of lradilional. nonrenewable ellOlJY IoOUrCU. encourage the devclopmcm of altenWC and lrlIC .... abIe ellOlJY OOOICeS and further CIIC'IY·~I.ted CCIlftOOIie dewlopncnt.

n...rina the pMl throe and .. half yean. the Erocru orr"", has undc:nAI<cn the AclitHt Pkut ·, 2(loojec:livq.

Education and Information Services Nebr •• klI E~rgy s.tt'-ment Fu nd

Oil Overcharge Funds

Since 1982. Ndnsb. tw '-n rteei"in, oli o· .. e~harg. fundi (""",,,limes ",felTed 10 III'w'o1cum Vi olotion Bernw Funds) lIS a result of ".noo. court ocli"", "I~i n't oi l companlei thaI o,=harged their cuslomers duri ng the period of roder1JJ price controls from 1973 to 198 1. 5i""e direct compc1\$aUon to injured cONumers seemed uM;ali.\ic. tl>< courts onltrallh.>t the !IIOIICy recO'iettd frum laWJuiu I>< diluibuled lo !be SI.I~ to fund proJnUnS 111M pro_ide indirect TCSIitutioo 10 inJ_ ed ellCllY ~ SLaieS """" directed to use me money, within paramc ..... esubli,nod by !he COOft<. to

fund ...... , y ... iI~ and comer,·ation program •.

Education;, needed by con'Umer5 10 make sourllloncrsy doc;.;", ... 11>e En"'-n Orne. identified and deliRred educational opponunilie. and informalion •• ,.,.. ••• llIroulh • cOO<dinaled i talewidc effon.

A Summlry 01 b.l'on, Stripper Weil and Diamond S,,",mrack ott OVlrc~.gl Fundi II al JUntl 30,1996

Tho accncy .... hliUocd and di>lribu1W the Ndmulo w .." a-n~rly '" ottou.andI of Ncbruu.... The ~rly

hia:hliahlS • _ariety of CfIOfJJ' coll5el"Vlllioo projccu and topics. T wo mandaIed 'lcncy publicatio,". the ""-aI Rq>On and N.braJi0 EllUl>' S"lli"~I. we", also """",,,

In I !l93. tl>< Encrtly om"" •• tahh.hed an EneriY Edll<'ad"" and Worm.lioo CO . ler ... mn,,! 10 ccnu oliu. "'"Bani •• and diuc miMtc: cd""oI;"n and informlllioo resource. la the general .... blic. Siru:c [!l94, II>< Cenlo, ', <taI.wide .n."BY ed\ICaliOfl Klivir;.. have ,-" opcralCd by the Ncbnsb. Math and SdcIlCC lnlli .. ;~ • . TIle.,.ncy has Kli""ly promoood the .... nf .......... information ICrviccs de""loped by !be U.S. Depanmcnl a r Energy and <ldoon on lnl ..... l .

1996 ANNUAL R fPORT ,

TDIIII Receivld t""~ EIO'I>ed 8,183.1 26 ,~, $23,888,070

Fund, 8udge1.c1 Coollt_ " .022.370 Program O" 'I ' :~ , ... " 103.6112 ............... 375. l t2 , ...... 376.848 Load M~ ., .... A110rney GeM-ret ~ F ... I 0 Bao>kWi .. F_ 0 Low tocome WN tl\eriU!iM 4.019.737 E .... rgency Prepereo;lne ... 45.907 Doh. & E"""lIY SlIw.g

LOIll Pr19am 12.634.919 LOfoI'I Program ee ..... oy S93.010 ..... - =.'" !leo' g oaled tm_ 6 15.615 Oil OvarctIIirve AGnio .... ation , ~ Rwtlulion PIOjecI: , GowmoI'. Owrd\IItgit PIwo '90 100.000

Unccmmltt..:l s.J.nc. .173,263 Alt~t..:l to Low ~. Prog .. m. " """'"' _ ........ ""'"

4.823,~ ...... 13.207278 $1 11.4011,108 15!9,-'20 $43,656,598

$&,837.000 '" $10.859.370 , ..... 110.126 , , 37l>.tt2 , , 376.848 0 0 ., ....

299.327 0 299.327 .. 0 " 3.2511.464 0 7.279.221

0 0 "'" 6.155.081 0 I B.790.ooo , 0 893,010 , 0 = .... 1.375,013 0 ,-= ~.t99 ,.,..., ",.m

0 11,186 9,186

0 0 100,000

SI,OH,908 " $1,212,169

$278.S34 '" $278.534

-..... .

Energy Eo..c&tion FirIanQng Demor61r. tlone

"g •• ;"IM'

F .... lbOIity Studiel

Buidir'lg Improvement Demonstration

T rflt\SPOrt.ltion ,-....,..... Dobf _ EnIIVf SMIg

u..nPfug .. m

Low Incorr.e WlfllMrlzation

StBII BuildI~ EI'II'\JII Team

L""aI Government El'llr\JII M ........... C<rcu~ Rider

Public TI'8I1IPO'1a1ion

EIlIIIV)' Relaled 1lIoIech."'IOIovY. Solar and CGnMrvlllion OuIJUch

Go_thouH p roject

lno"",.~ ... EnarvY Gf_

Dot .. wod E'*V)' s.tWtg u..n Program

lnolan TrmI GovetnmetrUI

Vo .... tiIy 01 Nebt .... Buiking W.Mhe!iu*-t

NebraskIl Stili CoIl .... System

C<lrtiI W&athertzatlorl

916.959

291.276

167.993

729.499

700.000

" ,,",

12,830'.919

.-~ , .... $3,259.464

810.000

,""",,

000,""

2,000,000

"",",,

100,000

6.155.081

77.000

,""",,

1,SOC.000

250,000

918.959 913.531

291.218 291.215

187.m 187.993

729.499 129.499

700.000 100.000

",,", "",",

12.319.8511 12,31 9.658

E_pendit_ ConI • ..:!. Th~'"

I .. ved June 30. 11196

$2,259,584

124.210

,""",,

"","" 2,000.000

"",",,

""" • • 4«,275

71,000

,""",,

I.SOC,OOO

250,000

$2,226,999

124, 210

352,5&1

790.~

1.809.768

"",",,

19,070

4.444.215

68,412

497. 136

1.494.959

231.861

1996. Wef~ S43.66 million: $23.69 million in £.u./Ht f\lfld$, S I9.4] million in Slri~' W~II fluid, and SJ6 million in DiamarwI Slaamroct fluid< Cst:(: fil"= 6 and 7 for ~irlC1 on bow the funds bl"" been U>ed).

Specific Oil Overcharge Projects

Acti 'ity thi , year for each oil o~erehari" project f'Danced by the Nebruki EMrM)' ~1lIe1D'''" Fund, ",viewed by the !.epllal"'" and "f'pn.l>td by the U.s. [)ep&nmefu of EfterB.)' i< deKribed on th;, pile and thoae \hal follov< in !hiuea;QIl. Dollar and Enat'gy Saving Loan _~m

£.u./Ht fund. tOtl' ;n, S 12.63 million pillS 56.16 million in Srrippe' W.U. $.13 millioot;n AnIO<'(). 5.01 mil~"" in Coii7lt!. $, n million in N(JJiON11 Ht/iwm and $.16 million in Wcbrl funds (amounts include intore. t eornin,,) hive c.pitalized the Dollar and Iln'''8Y Sav;ns Loan Program. "'hich proY~llow.inter.'t loaM to N.br .. l:al>$!Q finance hom<. building, !IaMpOf'll1iOl'l and .y....,m improveme!lls. MOr<: Ilw 320 paIIiciplotinB london pto>'icle sil ptreem iftltttSl ""Ie r."'lICinz for up to fi ft .. " yean "" ....... for """'D >avm, jm~lI>Cnu..

no.: mOSl commotI illlfJfO""mo<nt.< ;n homes, aplnmenlJ llI>d <man businesses on: !'lIpl.,in, li.tmaces. air C<>IIdjuo ... n and w;ndoWI.

Tetal StrlppN Wit/I Conlracl. June 30. 1996 $16.251.565 $12.830,068 $12.459,654

Popular qricultural improvement< incl...x installinj 1o ... ·pre5.ure irrigation ,ySl<ms. replacing irrigation rump' and mOl""', makin, well modif",otioo, and -"--"""" no.: agency'. three l'fOJf1"'lmMic

divilions - Elltr.y Fi1'l&Jl<:inJ. Energy ProjecU and WeatheriU(ioo _ manage proje<:u fin ... ,:e,d by oit o""",harg< funds.

The Nebraska Energy Settlement Fund

no.: Nebrtita Ent<gy s"uJ . .... n' Fund wu embli.1Ied by the I..egi.wun: f.,..moI1i:1 paid 10 Nel:nlu from o,'<:f'd>a<ge c ..... s;nu M&rch of 19!16_ Toul fund.

repl"in~ ""in dryas. Ci~ and coonI}' governmentS and achoc). ore rene",Uy replacing boilers. fumace!l and in".lling be.t pumps,

Some e""IY,p""1I irnpmvemenlS r"lujre an .""'D' audil befen a borrower may secuno fil\al\C;n .. n.:,.. imJlfo~nt. may be fillaJlCoed f(lf up to fiY<!, ltD '" fif\eon yean deptndin, "" .~ type of im"",,,,, .... nl. iu COIl and the amooJn' 0/ ~ oaved. I.oaM for enerJY 1OIdi1$ ore available dirtttly from the EIWI'I)' Otroce.llllG inoerest.

ApplicantJ. a n obtain appropriate forms from the EnerD' orr ..... participating Ienden. utilities or equipment deal .... Aftcr OOtaini", bids. applicants thctI lubmit loan fomu to participou nil lenders II one oI6'il .;"". """'" the .1aK. Onu I Itllder appro"'" the loan appliCllion . • commitment agreement is ... bmiHed t(I the Enersy Offtce for ",view_ On final appro,a! from I~ agency. the lender IlO(jfielthe applicant 10 Jlfoceed with the

(inchxiinl i ntc~!!) .eceiv«l u of June 3(). encrJY improvoment.

E NERQY P ROJECTS D IVISION ,

011 o-...rcN.ge Fund. In_ted ... Type. of DoIIa. a Energy Saving Loan.

as 01 June 30, 1996

-""'-Ill .-

Since !be I ..... program bopn m<ft Ihan Ii"" yean IgO. 11.1 so pro:iect loans ba,'e been ma. M<ft Ibm $ll.46 million ;11 oil o"",,reharge fu!>ds (S 17.68 milli"". in<luding inttml. rlu. loan repayment.) have kveraged in exce .. of $30.42 milli"" f,om the , l.te·, private lend ... , A 1<:>1.1 of 1l1OI'e than S65.~ milli<m in low inteR5I loans ha¥e be.n u.>td to f1......ce c_U ",ving pI'Ojeo;tJ (see fig ..... 8). Electrical Load M.n.,alnHtnt Resource , .....

Crealed in 198), the EIcctricaI Load Managemtfl. Ruoorce Fund i. upitaliud with SSO.OOO in EUOII oil ovetth ... ,c fund, . UMa .~.-- - "" III contract. NMPP Ener" .-_,-_MI,toI4)M _ _ Ill manigo. the loan application,

__ "~".11' ~_ andrepaymcnto..

-. - - 00fI00 llIe fund offe .. int ... "I.f",c finandn, to the 9(l.plUlI Nebr.,ka utilily members of NMPP E"erl)' 10 help puKho ...

itwalL 01 "I'8J1IOo 1,...;1 manqcment . y>lW>:i_ llIelt ,YllC ms allow uli liti •• • o moni • .,.. and ...:I..:, pUk demand ... ¥e energy and nmd beilll charged for expe"";.'e electricity .....J d..n", peak tima..

o.er the 14 )'UfS of operaIiOll, the initio! c.opilal invC$OIWn. ofSjO.ooo lw R:YoIvnI more thaI'I nine times. IoI.Yinl meptI)'<:fS in the parlicipalinllO'NM tIl(It'e thm $3.9 mill;"" <!ICC fil'R 9). Communitiou!bat imlaU Io.d manqementIY ....... conlinue ro earn idditional .. vinll !Wring dle lifetime of the equipment.

In 1995·1996. tWO "",., loan> """re

0...", Lights it. rwionaI u.s . "" ..... n .......... Pfote<;tlo" App!Cy df,," focused 01\ Ullin, Sbte-of·the-ort lig/>ti .. , leChnololics in commereial .... governmental buildi"" to redIlcc .... rgy. COSts and pollution .

For the plSt four ye .... university on;hiT«ture and on,i""orin, .rudent. have been conducti naliihtini .. rvey. of the , tate', 2.760 buildin ••. identifying what lightins improvement. would be most cosl-tffecti"".

Based 0<1 earlier f,,,din,s. it i. estimated tbo . tate cOIIId 101.\'1: more Itw. $2.1 million upPally from dectricily and maintenance «>StJ after the cosH,ffecti.-.: liJhtla. chan,.. .. e ........

Dun", this Bpottin. period. f .... <Is lObLlin. S3~2.0J9 remaitlin. in Gtcrn Lights and Hundred ""iolS of I..ight .... ere combined and R:a1ll1Cat.ed t<> tbo DoU ... and Energy Saving t.o.n Fund Hundr.d Point. 01 Light

Aquaner of. million don.,.. in £non fund. was booscted fOO" subsidizing the ",pl_ment of l""an<le5Cenl bultt< with compact nllOfCKentlam!", Compact flu~sccnt bult» require only "",,·quarter of the e"ern to produce an equivalellt atOOWIt of light. They .... n>Ofe upetlSivc. but 1m up ' 0 , .... Ii""", 1",,1"'". oftcn poyi"l r.,.. theuuel'<'C5 ;" <me .,.. tWO ,~.

mode: • Arnold. S 12.000 • COII ...... y. SI2.000

Gr .. n Lights

CumulMlv. Swing. 01 Communhlel BorTOwing Electrlc.1 L~d M.nagement ReltOurc. Fundi, 1963-1996

Fifty thousand doll ... in En"" fLIIKl., (unopent monies from Hundred Points of Light) and S1so.em in Slrip~' Wdl f\/llds (from the State Buiklial' Il""rgy Team "'·ruch .... "'" became operational) ......, o!lotted 10 erc.w. -.,..1 ..... 1 Gr«n Lil hu effon.

An -.ldilional ro ily ~ doIl:n in f:u(Hr furw:IJ were odcIed to the Glee" Lightseffon in 1994· 1 99~. "ThoK prevWu'ly·~ fundo """R: t" ,ufemd from tM Oil (h'=barge Special Prujecu fund.

1996 ANNUAL Rr:I'ORT ,

Total Estimated Saving. to DII. 15,969,535

In 1992 and 1993. the ,we', t,.,o lor,est e lectric providers - Nebraska and Omalu l'\Iblic Po· . ... , Districts - cOOflCI'&tcd wilh the ErlC:fiY Offic. to subsidize placement uf 2~.())) compac1 fl\ICIIUCcnu bu lbs in u_ 860 commercial bwi ... s .... 'The: five dl>l lar , ~b$idy w ;u equally shared by rhe I,Oncy and the lllilities. The Energy Office "PC"t 183.0 14 "" this compleled

"",,"-In an earli" rqooninr period. Lincoln

Electric Sy""" completc<ll $20.())) effort to demoru;trate lighting effici.ncy technoIO!!ic:J in l<x:al b~,in,sSH. Afte, a year" u .. , the util ity w;ll repoet o n eneriY and cOSt saving< ... ... ell ... <)'11'",,1 ptisfaeri"". The E!IeIS)' Office hM opent S4.2I] on this project.

Fi fty thousand doll .. was also allocated to the Green Lighl> ............. For II'IOIl' informali"" Oft thi. actiyity, ..., ".." . Innov.tlv. Energy G,..nu

Siripper Well funds totalin, $ IOO,())) were Ivailable for grant.< to individual , for "''''''''''h andlor dev.lopm.nt of .... rgy· relared invcnri"" •.

ill this program's "'"elI Y .... 33 I'fUI'I'lkations have been _ eived. O( Ibou. II have been in .... <a;l to complete the fIo ll appIlcalion. Six o f the II weu ",...;ewe<! by the Univenity of Nebraska for technical f .... ibili'y. 'The: MerRY Office, alOftI! with the Univ",,;ty ', Techniul As,i,tance Center. develuped ovolllliion criteria f(ll project revie .... Research conlinued on me.e ~viouMy .. lecred pruitt."

• A $$0,000 gratlr "''as a,.,arded to Conin Sy_ oI Elmc-k in 1993 10 ."",plele the desilj'n and fabrication of. p<OllIlype grain dl)'" whic:h utilizes I heat pump to dehumidify dryini .ir " .. hieh ."""Iate' in a cJOJ«! ,,,,,, .

• A S~,1XXl grotn' w,.. award«! in 1994 roS-Arrow ofH ... tin,. to

demon"""le a calalysl"'llhanced p)'l'nlyois process """I ... aste tun. 'J'hc proccu i. cxpc:ctro ' 0 produce •

fuel gl< with hi,ber CfIttJY ""n\ent dian tIlIt j'Inlduccd by typic.al pyrol ~ 'i •. Wort: on boIh !heN projects i. ocOO;l~1«I for cornJl'k:OOn by the end of 1996.

Landlord La.n Progl'ltm 'This program , I component of the Dollar and EMray SninB Loan ProllrBm, ... al

fi nanc.d ... ith $50.1))) in &""" funds ...... $50.1))) frCHn . 1991 U_S . DeJW1l1lent of EIlerI!)' ille.nlive IJl!It.

SitICc thi, PfOi1'&M ~ operated by the Wo.theriutiOll Di.i.ion in the al<'IICY, I IlIOn:

complete ~pon Oft rhis pro,""" appears o n ~ 2. Lincoln E,*,IJY eonterv.lion IntlI .... t Sublldy .00 Rltbllte Prog .. m

Thi. Iocai lUbsidy and ........ proa:ram ended in 1991 . Since some Ioaru; "'0fC ~rired

.. lie.- t""" pIaMed, MIt all wbsidies ...,~ fully utiliud by !be borrowers. Un","", subsidies an: ~Iumc:d to the Energy Office &lid t(JIIled $2,& ]3 in 1995. 1996. Lo..,.lncom. WHlherlulion A.llllince Program

A total of$7.28 million in oi l overdlal!!. furtds ($4.02 million from &:WII.nd U.2¢ millio" from Srripptr Wd/) ","vo bun a!1o<ated to the l<,w· lncome W.alherizatiC'Kt As.;.tancc: Prov= ro usi .. low·itIComt Ncbnoskan. with ~1ldt"ti al ",ealherization to reduce e""I'JY ...., and CQSI$. In 1995- 1996. $50 in F.xx(>ll and $34.101 in Snipptt Wtll fund. ~ spent t ....... 'h rbe proiflllD.

n.. """'" of the Slripper W~II ooom order mandMe Ihar an equitable share of the funds be:ICt a.ick for the Jbte' , Iow·i""""", popubtiop. To dale, S2,2U,.999 in Slri~r Wrll fund, have been OJICIII.

F<l< II'IOIl' detai1«l inform .. ion about the 1.0,,,·1Il00''''' Weatherization A • .; ... noc Pro~, _ POll" I . nd 2. Native Ame rica" frlb.1 Governmentl

TIle SUipptr Will cOlIn order requj",. the >l.I<: to >""vide on equitab le ,h..-e of oil nve"'lwtI;e funds to Nati ve American tribal ,ovemme"' • . B .... d on lhe number of Nativ. Amoricon. 1ft cbe stat. , sn,OIIO ha .. been S<1 asid. fOl '~B;ble poj.,;ts ,u~!C'Ied by the aibal l{WCmmeou,

No pn>jeet. wore undtnakcn in 1995- I996. A total 01 SH,5211 remai ... fOl Nat;'-e Am<rican projccIl. Nebra.kIo OnUne &/pport

The .ute', information and ",,..,munication Iymm, Nobro<ka OnLine . .-.«i,'ed $60,1XXl in woo fund. co partially &fr:oy IOOI·di, Wlce relepho"" charge • . 'The: information 'Y''''''' i, <JPCr. tod by the N.brask. Library Commission.

Dorin!! tbi. reporti nl penoo. a total of S 17.136 WI' ' ront on iong-di'tan<t charge! and thi , project wu concluded. Nebraska SUt. COl. Syalem

A IOIal un 1..1 million in Sf~" W.1/ fund.s ,., .. allocated fOl '''''' 8Y """"""II i ... projcru ar the ,tate roll., ... To d:de, !becoUe,. Iy_' Boan! of TI1IS\eeS has desilnated fundinl (01 th~ projcru: $986, m for CQftl.lru<:tion 01 a wood·fired boikr .. Oiadrnn Stale CoIkgc: .... hich ",'as """'!'letcd in 1992, $45.000 for development <>f. comprehef\,ive .. utili", pi"" f()f P. ru State Collcge: and S46II,221 f<ll buildin. weotheri .. tion i t Ilny of the three compu ....

Dunng 1994·1996,.n a.JJitionol ten huildin. im!»'Ovoru.n( projecr. were ICk"tcd and compl.ted.

Uf the SI _5 million. S I .4~,959 have boon .penl. The Stare College Syste m 111 10 provided, 18,000 in matchini fulld, to eonclude this prUjo<ct_ PlanninlJ, Monl10 rlng.nd Ev.lulting 011 Ov.,.harg. Progr.,,1

Tu comrly with fedmol.uw:J rour1 reponin. "' ... 1&00 .... $3&4, 199 ill Slrip~r W~II and ~so,ooo in £uQ.r f ...... have been committed fox planni .... monitoriq and .valuating pm""",' funded .... itll oil ""adoao ge doU ... In 1995-I996.. total ofS21 ,794 (S2.6¢'

ENERGY PROJECTI D IVISION ,

in Stripper Well and 519.129 in Exxon funds) were spen\. AI"" dwing this period. $28.803 in Exxon fundJ from """ ' vended fUOOJ from pn: ,·io ... ly approved I"'oject, were odded w this activity. Schuyler Energy ConMl'Yal1on Loan Progl'lll'n

SC .... ~I ... city lovc~'" and its &.e.~ Com"" .. ; .... COftIinued 10 ope .. le a 10 .. inlernl """'iY """"""' .. "'" 10m prozrmn for homes.. bu.ineuu. n""",,",111 and govcmmen\.ll buildi"p.

The loan J>OOI was Capitilliled with $ 178.007 in EuM fund, and $1 !/!I.m from local lenders..

T() date. len commer~iallo&n. 1<>lOIi ng S 1 4~.2T2 and 124 re,identiall""o, 1<>Iaiing 5)41.003 .... ve I:><.n m .... Tho program is acheduied 10 operlIle thn ... Ji'I 1997.

flinch upended 10 dale for prop;om <>pmoons u:uI $63.6S6. The d ly Iw. provided $56,386 as in_kind match.

In IWo!, s"huykt teamed $ll,OOO in local ke"" ",'",nu .. "'ilh $5(1,000 from lWO local lenders to match 57S,()(X) in EuoI! oil oven::l\arie c""lIengeloan f"DdI fronlthe &!efJ)' Offlu, lbj, $150,000 in "",intt", .. fund. kveUKe. Ill'I equal ornounl franl local lende ... n.c city \hen moku fOOf percent energy c"" .. rvotioo I"""" w 1oc.1 residents and businesse. undcrthe Doll .. and EnerllY Saving Loan Pr<>pam. South Sioux CIty Energy Conservlltion Loan Program

The Soulh Si""" Ci!)' AmI Cham"'" of COPUIleICe compkllG its low-inle"''' .nonu «IttS/:nIabon loan prOJmP for commercial buildinp during 1992·1993.

The loan pool w O$ CApit&liud with $132.000 in Ev;o.o fu"'" and $66,000 from local lenders., AD additiooa! S6.6M in EuOfl fundi will allocatod for- Jl<tli .. m ope .. tion •. Ninc projects were "ompleted, u.ing Joan funds lO!41inll 577.332. Opcrutin, expense. tOlaled S I ,203. The l()Cal Chaml:><r of Commerce pr"vided $2,200 .. in ·kind malCh. All loan "'p"ymenli "'.'" compkted in 199~· 1996 and un. pr'*';( wll concluded. State Building Revolving Fund

Foot .... _ Lhousand dollars in St~r W~II fund. were added 10 0lheT funds -S I 50.000 in SlripfHr Wdlfu ...... rn,m ~ ",*', G"",,, ugh ... ~ and $~,OOO in Slri~' Wdt fund. rn,m the lnnovativeG .... l5 ""'I""" -toereal.' SUWe Buildint R.evolving Fund to panially finan"" lithting improvemen\< identified in lighting ioU"'.},>

perfonned in stat. building •. The illCr<:m.ntal cOit ol 01"", e"ngy dfi"ient lillhtina improvemen15 would I:><

fitlifICQI fmm IwO IKNrcC5' a lout for """,half oJ' the cost would come from the Stat. Bllildin, Ittvolvin, Fund and one--baIf would be prtr.'idcl by ~he "Ilency ownin, ~ buildinll. H""",'",r, somUIM. buildinp ~ elizible for gn1f115 f.om lhe $hie's Task I'oroe f"" Buildi"i R..newal. The<e"...15 could be used for ...... half ol!he qency's >h ... ol the cost olille itnprOvemenl<.

During 1'1'15_1 \196. nt, loans were 01'" rrom thi, fund. Suboe<juent rcpon. 00 thi, fund will oppear in the sec tion"" Doll.,- and fIl.ru Saving Loan •. Statewide EnerlilY Education

TWo bundrN tho ..... nd doll ..... in Ev;o.o 10nch ~ve han dedicated ~D coonIinatt $tattwide energy cotlSen'ltion i",truction in '""'" tlnderganen IhrouVh t",elve. EnlitiClt illvolved in the effOrl i""l ...... edoc.liorW ,..",ice IItti15, cd ..... or proICMiooaJ orgftllil,iltion., the .taU!', o.panmeDt ofEd ... 1Iion and ...,.rlY "'1'I'I;'n, The J'O"I i.w illCrcuc e""'n aworenes< and promote cncrv .fflciency to 1otW'C ,,()IUllmel1,

In 1994_ 1'1'15 . • ~""lIaclor . .. i.ted . geney Itaff c{)(l<dinate wort on Cl\eriY roucation "'-1ivitie •. To date. $26,708 has I:><en 'pe nt for oducational eooll""t, ... and ,wf .upport.

StArtinl in 1993, the EneriIY Offic. jojned with the Nebraska Malh and Sci.ne<: Jniu.tive 10 fl1rthe • • ""'IV education in tbe Sllle , The Iniu.tive i. a J1OI'P or cdotaolOn ao:tW$ tilt IlIte and .taft from ~ Uni,,""i!), of Ne~LiDcoln ,"""kinr 10 impro''C

"'KfIG< and math od ... a<Ion. In 1m, the linerS)' OfflGCcommined S3OO,OOO in Ev;o.o oil ovachart. foods 10

matcfl • $4.9 mil1 i"" &r~nl _ • Iota! of S I 0 milli on from tilt National Scitne<:

'996 ANNUAL R EPOAT

"

Fooooatioo - to achieve excellence in elementary and secondary math and ",;'nee cd..,alio". Since thi.< project be ..... m~!hart I JOO Itao;hen .... v~ attend<d eDttJY cd..wion work>hop< and 113 ID"" wtoJj,,! S I ~l.Qll hil¥c han award«! for<pe,,;rlC ene'lY projects in Kbooh across the l\ale,

Owing the rcponinll period, $55,000 w"" .pcnl for .. ""her traininll and grants.

The Iniliative cOMin .... to operat. tbe agoncy' . ...... gy cduo:woo raoun:c: libnry and ma1imize "'" of lbe IlllOfDCt fu Iocatin, and di.uibulill3 ene<ty odocaUoo mooun:es, Stulrt Energy ConaervBtion Loan Program Whi~ this local cQmmertia!loon

pl'ogratn eoasal makin, new loaM in 1991. ~payme~ .. from the borrmvcn will c:c ... inue beyond the bqinniQII oJ !he ...,.1 eontury. The rortiOn of the 104fl funds bein. repaid to the E .... rIlY OffICe ""ill con tinue to accrue in tile project'. occoo nl until all loan, .... v. been repa.ioJ Unlvefllty 01 Nebruk. Energy-R .. atedR ..... ch

The Univ.nity of Nebraska received $2 million in SlriFFr Well fU ...... 1O funber energy·rdalOO ..... ..-eh, Pro;.., .... kcted m~( secure ma!ol!inK fund! before qualifying for oi l ov.",h.ree dollars.

Oftwe1ve re .. arch project,. I I are complettd. The """tinuin, pmj..,1 is 1>eaded by Dr. David ' oou, of lbe U ni VCI1ity of Nelnlta' ullCoIQ O'panm .... of BioIoJica! S)"I ...... &gi"""ring. The $ 17(1,000 project ...,1<.0 ro de.'elop a binder u,ing VoIa,l. fi uid, f,um ethanol product]oo. Th. bind.,- is mixed with ",,,,It poper to prod .... fue! pcllell- The match ""IuifCmcnt of sno,ooo "-'" met by a Nelnlta ..... arch pi<lne'Cr who don .. ed ro.h rrooncy and equipmeat. The projccl ;.. 1lChedul<d for oonlp!clion in 1\196.

Si ... e the ",search pn,jc<;u.o began, 5 I ,800.11'>11 in oil o~.n::h"'Jtf' funtI, .... v. been ~nt. Thi< project i. scheduled for completion ill the "".1 ~poninl period.

Other Energy Settlement Funds

NOlI ,,11 oil ovm:lIarge fundJ ""' pan of the Ncbn"ka &ern Seule"",nt Fund . Somot or w .. funds have been held in t3CItIw by W U.S. Depanmelll of EII02lIY .nd ITt di.tri buted only when" plan i. ... blnitltd by • ~ cneTJ1 '"icncy and 1f'P'Uw:d by the fedor;al eDerlY ~y'. Office of Hem"i' and Appeals.

Oil ,,"ercharge 1C1l1I:tMn1 funds re.~ltinl from fir.u IeviedllainS! ''Il10<"0.

Palo pjnro. Vicun and OIIhe, oil companies fall iaw lbis calCP"1. Actording 1<> !he Department of Energy, all future K llkn><nt funds rec. iw:d by lhe .we win ~ c .... ifled as Slri""." Well funds and nOl subject to ",view by the Office of M.an,,&, and Appc:als.

SpecifIC Oil Overcharge Projects n,. ItlmS of e""h oil o"ercharae project financed with the"" ",i"",I"neOlls futlll!; i.

~t>W 0III.1Ii. page. BERT LCHln Program In OlJ\.lna

Omw', Bol\5OO neiShborhood was 0lIl: of the 1.'1 ~icipantl in thl; ajleDCy"S communi.y energy m .... saneot prozram which ended in 19117. M I ~Il of thai program. the Be"..,n Ene'sy Resource r.am - BERT _ wa. fOfnled and launched a ",vo/vinll""" program If> hl;tp homeow ... rs and busine~s finaDC" .",:rl)' ""vin, impro ........ uo. The loii'i propam ,.,'" capitoliU<i ";!h S90.000 ill Amoa>.,,1 overcharge fund, and ended in June. 1993, 'I1Ic: 1 •• tl",," was ,epaid in June 1996, Sbt.wlde Ener!ilY Informlltlon S.rvlce

In 1992·1993. !he Energy Off1C<: 1>< .... 10 de ... 1op enerv inf..,.,atiOlll snvices to

as, i' l co",umers~) ml k. docisions ... ultinK in tl>o .md.nland c'''>HQmi~ u"" of

CDCI'D· Pundod ";!h $ISO.cnl in illIII>CI> flll'ldJ. !be .,.ncy 1><,"" t .... process to de ... l~ and

malntain a lill .. .,. colle~tion, DiSplay, OIl a variel)' of tPpic:' w<:,e dev.loped or bomlwed from ""'"' OIIlutiDllo .... lnfommiona! ""'!trials "''OTt de ... 1oped and distrib,ncd on "'''-RY lOpics It • variety 0( ev.nt,. SiDC~ 1992, $101,8)7 hlv. been

"",n l on ...... lIY infOfnlalioo Krvi<;e"

Energy Efficiency, Renewable Energy, Pollution Prevention and Other Energy Concerns

As !he l!Cncy I<bc:U \<) lOll eYer·d'.ngi", world ot energy lOSe and produttion.lO the .. rvices and wOOc performed by lhe F.natY OffKOC also change. Durina l\19:i-l996. the agency ~ aod fundtxl, dirt.;,tly or inr,lirt<:11y. Dew lC'IiviliH tNt inv<>l.cd tnerjy

effICiency. renewable eneI'iY and pollution preventi"" ...... ellas the hiSlorical ",,[iviti •• for which;t;, kIlO""".

Durina the reponin, period, Ill< og"""y alw applied 10 the r«letal JO"m"",nt and olllo,.. for di""",rionary fur.dinll for activities in new, but rel3lCd,ltoll,

Climate Wise In 1994- Lm.lhe Ilnerzy OffICe: " ... selccu:d by ,he U.s. ~panmtIlt <>ll'.oc:r~ "' DOC

of ... ven llalel to m:ci"" • S50,OOO Climate Wise JftflI. This rtd<Tal volllll\ary program lillb 1M fedeTal and SIll< 1"""""""'" witb industry to inc.~ enetJY efr.ciency _ redu« or prey""t pollution.

Ourini d\il reponing period. the octivilie< mc:1~ rnakillJ Climate W .... parmer< eli&iblc r ... !()w.in\erest Dolllr II1II Eneq;y SavinI! Loans ond laminl with Indusuial ~nt CemerJ In KAnsas, Cokndo, Snmh Dakou and iowf, to pori'.,.", <:n<:rgy and oy"""" .... Iy..,. r .. nine IIWIIlfaclUrers in the stale.

8 y June)O, 1996.1he Igmcy led lhe nation witb IS NebrasU Climate Wise paruxn. The goal ;. to ba .. c ~ indu,lri", in Ihe .ale !'ankipotinJ in Clim.ole Wise hy mid· 1m ,

High-Level Nuclear Waste Transportation and Storage

The majority of n!>Clear waste in Nelmsb. i. prDdoccd by iIIc two """I .... powu otaUDn$ in Brownvill. and Port Calhoon. I'<>rsLorqe~. radioactive "-aste material is daSli!"otd as high' or k) .... levd >nOlO doperdinll 00 tilt IMI\II of Ii ..... Iho; .. Ute =noms '-';"..,.;ve.

Hip-...... I ... _ i. ,...... """lear rud and Iw primarily boten Slomloo site • • DU<1ur

power pi ..... IWli.i"l C<InSUI>Ctioo of " lOiIljKAli ) or pennanetl' repooIIOfy. Once I ' ffIlpoPlY or permaoeru ........ lile ba:orne:f ",.ailabie. ~ rho llip.

1e,..,l wwc ",ill ~n . B..,...... ItWI)· n",,!ear f. dlilies ~ .UI ofNd:Irub and likely ......... ~ ... are "'""" "'!he nate. nilliDes and hipw.,. in Nelnska .,., probable ~orridon for shipmc:nu '" high.Ie",,1 radioacti"" "'1lSIe.

ODe I>IICleir group .... imated th .. 15.000 \rock or rai l lhipmctu.< would be: r.oedo<I ""or tho ""~I 30 years ' 0 move rho ",ut. from gencn.wn '" lion .. , i'e, . As many., 12.000 sbipmenrs could ptoS$lhrough N.bru~ ..

The EneriY Office beclme invol"ed in two i" ... rd.,ed 10 I~ trl nl-POrto,ioo illld storage of spc:nI nuel ..... f",,1 during lhe current reponing period:

• N.tnsko joined ""aliy 20 OIhtu'a'e. and !lev ..... 1 uti!it~, in /iUng I llwsuit o.pi~L ,he U.S. Do:partment of Enoergy ",hen !he federal IIi.ney announc.d that it had 110 obligll;on to belin accepIing nuclear wUte un,iI. SlOflIBc facili ty ...... .;oDStr\IC.cd. In mjd·I996. tho Coon of App:a1. for 1M DiSUict of Columbi. aereed with .... SIll<$. ",ling !hat 1M f<denle""Ij)' depan ..... nt muSl begin a.cttpting nucle .. Jhipmen'$ in 1998.

• As .... Iy as 1998. _1<. .. :" .. ld h ..... len .0 4Q.fold Increase in !he number "f nuclul WI&IC shiprne .... passing throug/I the Iwe _ fmrn ooly .en in 1995 to 400. )lUI for !he ... 11 30 )cars. "The Enerv:y OffICe joined wirb Eme<C';I'C) M_"", .... 1M Swe ""trol and Iho; [)q>artmcnl.,r Health to n.mi ....... _e', rudi .... ' fQC a dramlllic inc.<a1R in the number of shipmen .. .,f 'f'Cnl nucle .. fuellCros, the .tate.

1 996 ANNUAL R EPOIIT

"

Hydropower Resources Assessment

In 19%, the Idlho Notional Enginttrin~

LabontOl") completed a <talistiell ....... menl of current and porenLiaJ bydropowct '"CSOUICU in 011 Slates. n.. a>..umem JlI"OJ«tecI the muim"",amoo.mt of etICI"l)' tlw could be potIduced if the ,~. "."... <Ie •• loped.

"The I:ncrJy OffICe .... thm asked 10

......J~ .heir ~t of the sites twa:! "" 20 facton _ h .. reautiooal use.. hi"oric volue lPd prn<:""" of ........ I!"n:d species. 1l>e !We', Game and Porb CoouniOlSion il ossistinl!he at;C""y in romp1erina!be evaluau"". UI'OfI cornpleriO<l. I~ Enefll)' OffICe will rec.ive • S2.SOO &rani ., compen<ation.

National Energy Code Compliance on New Home Construction

The ~ " 'a> requwed by !he Nebnska office of tbe u.s. IkpartmrnI '" Housin. UId um.n [)e""lopmeellO ",view _ plan. of Nebralbns frnancinJ: the

purcllase '" the;r borne with • Vc~.· AdminilUali"". F""",,"' Home Admini..,..,i"" orF<dcr.1 Home Admin;stn.ioo mortl!agc. To be eligible for (he liov.mmen(-blC~ed mangage,. the oomes mull me.l 01" .~ceol the 1993 Model ErlcriY Code.

In 1993-1996. rhe 1t;C""Y •• alu.olt:d an CSlimaled 16 """'"" for wmpIiance .. ith the ..... Ij)' CQde. The lcencY charJes S50 for _ h ""view.

Wind Resource Assessment

In mid- I994.!he Nebraska Po .. ·.r Associ. tion and other re ... waN<: .... rgy intere ... i!!Cludin, the EllerC Oftk.

qre«lt~ participate in a mylti·yur Rlldy of the eight wind . itts in lh< $I.le f ..... their enerllY producing potential.

On bc:half <>f lh< Power A.ssociat;oo. the "ieocy applied to !be: Utility Wind Inter",1 Omup for a pant to partially fund !be: Nc:tn.b wind onody. In ~ 199j, \he l'Il>off Asso<iatinrJ rttrival • Sj9,600 vant from \he Interest Group.

In early 1\1116, th< EncrIY O ffice recc;~ed &IIO!her i..m in .... ppon r!I!be Nebnsb wind pmjco~ The National

Roncw>ble F.neray u.bcnlory . ... ankd • $74.428 ~t \0 . 1", partially fund the project A SIO,OOO &rani from the Americ.n Puhlic Po .... r Anod .. tioo ...... also re.:.ivod in support of the proja:l. The .talt·, major utilities lire oupply illJ the rtmoindcr of tbe OQ,t o f the stuJy. Tbe w inod 1.5$(5<I"0,,t, whioh c"""I~1 in 1999, i< cxpcclod to ~OSI more than $JOO.(XX),

The f .... ~1IT·stiSIWmf<m found that ,"'inod speeds mlFd r, om 14 .610 16.8 miles I'Cf _ .,.j ~Jy were MmRgest .. FcbruKy ond Otu.ber ..... in th< ..-Iy ofun,oon. .... I .... i ........ Spnn,""'" had !he bigloesl opco:dJ It 16.8 -' 16.7 miles 1'Cf_. respectively. The 10"""" wind ......... ,.-=record«I It R..,;hville and Wahoo. H.611'1d 14.8 miles "... """,. ~;vely.

--- - - --- ----ENERGY E FFICIENCY, R ENEWABLE E NERGY, P OLLUTION P REYENTION AND OTHER ENERGY CONCERNS

"

Ethanol and Other Alternate Fuels Hi,toric:oIly, the role of \hi< Enefl)'

OffICe in \he: d .... lopmc1II of a1.~~e lnnq><Jl1.llion r ... l. hu been ma. of ad,,.,ale and <lcmon~lTa.W<, TI,c Go~tmOf rtq ...... d ~ agcncy, in;\$ .ole of ent1J)' poIky ad~ll.or, 10 take. """" Klive role in rooroi""w.,: \be de.-elop .... nt and use of ethanoI·btit>d rueb, "'" ""ly in the Slale, "'" aroulld the country .. well. In the: past ""y .... 1 years, the igenoy h .. been very 'lICc~sfut in _uriog favorable pohcy Imotmenl for ctlw>oI .... d in loc";nl fundin, for OI .. e, municipal aDd county uansportaIiOft lyJtemS usiOIL altcnwe fuel •.

1995-1996 Highlights A """,be< of iJsuq and activities

;o\l(ll,-ed the ",.nc1" i. fuHilkd i., role io r .... eri'" the VOWlh of a/"'maIe ~5pOfUtion fileb. including ethanol,

America's Quest for Cleaner Transportation Fuels

With th< f'a&sa&<= of the amer>dlmlm to ,he CI'M Air.4c' in 1990 and .he: 5ub .. quent potU,. of the Eller" Policy Ac' in 1992. d.""". burning (",,1$ of all types be<ame a national priority. IXnocnoIly, !he uaru.ponatioa fue1IYpel OOIlSidett:d Mal\mW<:" ore bi<Jdiesel, electricity. ethanol. methanol. ••• ural,a. and propane.

For almoot five yean;, various ruel pnxi""us. i""ludi. , the pctrokum ind...uy, hlye foclOSed Oft the r",,1s and odditi,,,. 10 be used in me carbon monoxide.oo orono: nonanainmem."..1S of tile country ",hleh .".. requirtJ to u>e cle .... r·bumin' tfan.portOliou fuels.

1996 A NHUAL R I!:POIIT

"

Nebraska's Quest for Cleaner Transportation Fuels A. the SUI<: level. me Ck",cmor', 1992 M t'frAclion PIan.oo the ~member

Al«rnaie Fuels Committee tcn'1: IS !he ",id;nl fDrCe$ in iDCrtlS,n3 the UK of cleanerbumina InInSpor!.tioo fuels "nJ rtdu<ini the ~ure·. ov.rall dependence on petroleumha .. d f ... I, .

In I99So1\l96, the AII.mare Fuell Ad~i""'Y O:ommirlee """"pleted the p.iblle .. i"" and d iwibUlion of !he N~bTQJ"" AllrnfQli~ TmllJptmnJioIr fwlt HlIIIIIboot. N~ Alu",,,,. FlU" Slmiolu: A SI4U Direc/Or'J "'*' publL.hcd .... dhniburcd in 19!U. 1be r..., public"riMs ..... rt financed by • S 15.000 U'&ional u .s . Depart ..... nt of ""erl)' granr and S 1.670 .ach from the $tltO', Bl ue Aan'Ie, Po ..... , and Propane: A$$<)Ciarion. IS .... e ll .. the lUlie', Ethanol ond Soybean Boafds,

n... Committee also panlcipak:<! in • JulIO 1996 preliminary aean Cilie, """'tina in Nebn,'" Cily, Oe ... C'stitl is. voJ .... tary. IoaIly.""""" ,OVfl'ftfI'Ofld and industry pannenhi". C<JORIinarcd by tbt U.S. [)epmtm .... of Enun-, to upmd me UK of Iltem"rive. ro gasoli ... and diucl fuel.

Nebraska Ethanol Production Developments In 1m. rho " ... solidir,ed irs po«itlon .. tho numba throo ethanol prOOu<er in rhe

nali"", ..... estimated 16 ~nl of thr mw'l ......... com crop is II«:d I<> pnxIuce ethanol and other by-pnlduru. A ....... of !It .... " opendinl planrs .".. apatIle of produdnl l>fl 10 27S million .allons of.thanoI ann ..... ly, more than 18 pe"",nr of al l eihllnol product<! in America. The plants omploy 735 Nc bnl.kBns di",ctly and an .. tim~t.d 3.600 othero indi",c\ly - a tOlaI of 4.325 joo..

65 Percenl Elhanol Efforts in Nebraska

As pari 01 a Go.'ernon' Ethanol Coalition .ffon (oec: related _tion on P"'l!e 15). the Ener8~ O fr",. diTt'.Ctly ond indirectly .<KJnlinated .ffons to incre&$\: the \ISO of 115 percent .. hanoi ... ." altemlte fuel bodl inside Ute $Ute and KroII lhe n .. i"",

• The ali:.ncy coordilliled the desi", .00 producti"" ofstate specific brochures featuri ng the 1996 SS p"""'Dr ethanol

~N_k.tt IIId ""'" are sImritI. tbt:at r4 tI!o: world rhtt ¢arl can ,.,.. on fuel. 1haI_ mCfllllj 10 !tie ~~l

""Tho opporwniry i. n«.onIy .. Win_wiD f« the f~ .... _ andthe .. ~ bUt"'''''tin: world. dill " fir too~ftI q. ~1iI'''' and nnUtlms rtIO\Irce.t."

FoolTlurus, Thinccneo..lition .l>.te. E ___ l, I ... ~

distributed ""orly 28.000 brocbwu. I''--~~~"''"~~_::'''':':_''='~'_''--' Ponl MQUJr Comr-y avccd to ply llie $6.000 cost of the "",;eel .

• In March 1996. the .. cncy. uOOct two ",,,,mots lotalina S IS.OOO. hired an 8~ pcn:ent cthanol <oon:Iinllor r(ll activities in tho stare. The coordinator i, ",.",,,,.;1>Ie for some Clean Cirles orpni zatiooo] aoti.ities ....... 11 as He"""" Ioc.tionl tOf public lIS ~nI C'\haJ>oIstationl ia Nebrasb. The >t ... ·s fifl,l public 115 pen:<:nt ethanol pump opened in Om:ah& in J ..... 1996. Since Morch. the COPtraclor!Las '!'"nt 18,450. The f«leral We=m Reponal DiomaSI EnctJy Pn>gnm IUfIIIlied thr funding for Ihi •• m .....

Governors' Ethanol Coalition

Govnoor NdSQII fOlmdtd the OoYCT1>\lnl' Elhaool Coalition in S<p!emller 1991. By 1996, 20 ot.ol<:o and " .... territO¥)' we~ mcmben of the ethanol policy and promotion Jf\'>Up as weU os repre..,nlOl;ve, from Brazil 000 Sweden. The 10111 of !he oraanizatioo are to incrus< the ~ie of <thonol. II> doer.ase !hoe nalioo'. <lepo:ndef1ce "" ;mp<>ned "".rgy ~. ilTlfO'tl"" thoe environment and stim .... ac.lhe national ccon.omy.

The EMtJY OffICe director is one o f the Go""mo('. repl'U<' .. ~tive& on !he Coalition and the a,.""Y """' inu .. ' 0

oenre as the Idminis1nl1iw: hc..sqlJllr'l<TS of the poop. IS jt has ,,_ 1991.

1995-1996 Activit ies l)urillg the ttponing period, the

Coalition ulldenook .:tiviti .. in several are ... :

• In 1994·1995,!he Coalition rccc;vod ~ $2SO.<XXJ U,S . Dop:1l'lme nl of Enell)' grant rOt the eltabUlhmc"1 of the National Ethanol Rtsearch Institute . In 1995_ 1996, the Cooli,;,,,, .. lected the GeoqU-1>ue<! Coooonium for Plan, BioI...:hnoI"IY Res.eorch to opeooIe the JnSlin>!. as "",U as ... odvisory oommiuce 10 ..,Iici, lind ""Ioct rae""" proj«15 for fundilljl. 'The flm projects are upecltd to be selected in the 1996-1997 period.

• Cootin..ed 10 publiolJ the bi"'eeidy EllrmIoJ FdX Aim UId the quarterly ElJranoI ..tIm undef • S 16. n o conln<"! with a Virrinia finn.

• The 10"" Oq>anmenl of NOlIn ROSOIatts, un&. • ' 25.000 conI_ •• bo5Ird on Au~ ]995 _fe~""" "" Ibe ... viJOlUJlOftW .peo;IJ of l.'lhanol. A lOla! of 5]1.060 " 'as 5(lenl by lhe ronlnlclOf. The fund, came from • fedmol fJ>oIIl from the llepan.mcMJ 0( EnerlY and Agricul1un: ,

• To ~~pand lhe uK of u.",ponalioo fuel. u~na higher percenlag"" of .'hanol, 5pec,flCa lly 85 percenl em.nm and 15 percen' lIaso1i~, ll1e COO",,,,, received, in . pri". r.portin, period, a $2SO,OOO grant from tile U,S, Depatt"' ent of Energy to develop. public fueling infrastructure throoghout lhe Coalition'. ",.mber , latc. The Of,on;ntion Kl<>C1ed!he National Com Growers alld ilS subcontrac1or, lhe NOIi"nal Etha1kl] Vch;ck Coalition, heodquaru:red in Mi .. ""ri,.o undertake !he public f",linll iMrtlSlrUCt"'" develOJllflC"I project The on,ina! plan called for III klSl 4(1 fue];., sites to hede,'eloped, indudin, OII_t two in Nebraska. By June 1996, the cootnlCtor 00 the project had .pen. 510,8>1. i""h.d i,.. 562.794 Ihi,

--~poninll period, ond 17 E~5 puhlic fudini '1IIlions hlld opene<l in ",,\'On Midw •• .."" ,taU:.,

Members of the CoaJiuoo oonumocd to i.n""""" public policy dd>oteJ:

• The U,S. llnvironmef1ul I'rolttuoo "iellC)' lif' ed !he c"" oolhe omounl of o.y~es !hal could he IOddr:d to

O~renaled f .... ls in .he ............. The CoaIi."", had m]lJO>l<.<Ilhe fed<r.ol ',</ICY to •• te !his ""lion.

• The CoaIi.ion aaWl fu>idtnl Ointon.o .""sider making rdormull1ed SlJ()line avai lable nationwide . nd !lOt just in .he nine

''''''IIII~''''''.' in the nali"", The Envlronmen,.1 PrCtle<:lion Agency i. considerin. this r~ue'l .

• C""n!ino,ed res",,,,_,,,, to me<!j. f"O<Iuem. emefJinl i .. ues and C'-"'l"'5lioral iroquiOO and bearing".

ETHANOL AND O THER ALTERNATE FUELS

"

Natural Gas Technical Assistance

AboIl1 Xl perceD! of the ' tale's .Itu",l !loU ~OIIlumm receive Iboir .. rvic. fro<n ~of 14 mun icipally..,wned naMal p. utili!i ... Tho ,omainin, 70 percent ...... ive ""tunl ,as fmm DOC offour in_ · o .. ned ""ural gas uli lilles- KN En<rcy. Mid,.esl GAl, NonhW<Sl<:m Public Seni« and h<lples Natunl Gas Company.

OM lOWft in Nebrasb may be unique in the entire courKry and pro~ • ,Iiml*' into the: world or [OO\ono .... ', "Illural ... ",rvke. Ke8tflty ha< granted franchise. 10 two differe nt inv.nor_owned natural gas ulil iliul0 provide service to 1M [O"'D" ",side.lS. Allh;" time. dl<li<e Qf ... vice is only ,vaiJiOble ,<> <Orne latter . "1un1t po .... 110"'"".

Naln pi i. imponed infO die ",,1& to Ihc inveotor ............... mun;"ipally .......... ", ;Ihies primarily Ihrough major pipcll_ optlJ.led by Nonbem Natunl Gas Cumpony on<! KN EncTlY_

Municipal Natural Gas Regulation Act

Nebnosl<:a u one of only twO 11I1es in lhe Mlion III rq~ in""""" ........... "'l"nt aas Mlpplien al !be local le .. eL Villq. I)oanIo one! til)' councils "'~w rat. rcqoc.\b under \he oto"" , MIUlil:iptli NaturrJ Gtu H<,ulmionAcr, ~ E,IO.iY Offi« administer> !he Municipal N.tl,U'll G. , It.guMi,,,, Rcvulvi nM Loon """d. ete.ted by the Act !O provide interim rmanei", of Tale ,cgIll.oon. Tho oeen<Y also ~ le<hnical _ ;".....,. to

commun~ ies as they perform their It'plalory duties.

The 1996 1..qir.l"""" amc:ooIcd lheA<"f1O 111010' fOf coruolidatim aDd use of video<;onferencing of the ",Ie ilfU hurini: in tilinil involving"""" Ihan one ",Ie .......

Revolving Loan Fund The Mwo icipol Nallmll Gao Re,ul>liQn

ReY()lving L.oan ~'Imd ..... in.iliall, fapfPJi-l'Od willi S3SO.ooo in oil and n.alural ps",,,-uancew_. Thefllnd rlIIances locsl "''''\Ii ol lilility·initillCd ,c .... raI rate ""I"""" and jlldi<'i.u ..,....;e",.. if ne«nlry. Groupo of oonununities boml ....

1 996 ANNUAL REPORT

"

from the fund '" financ:ulM: rate .tudie. and !be (1JI>d i. rtpIcni,hcd in the ....... lJTIQII!It by the utilit;'., which in lurn recover the "mol of reiulalion fronl the ",tep.yen.

Regulatioo. go,cmin¥ lhe I""" fund were odopIod l/ld lOOk effecl in 1987.

1995-1996 Loan Fund Activities In 1995-1996. four &ro"l"S of cnmmunities ~ by fOCI!" diffemn inVOlOf.-ned

lIIilities .. -ere inY()lvod in ~"I a<1iyjti., finaJKed wi.h WI.920 from the M ... id pal NOlO Gal RetuIMion RevoI.vUll L.oan FwwI:

• Mid ..... Gu Comtlany repaid the """" SII ,IOII fOf meoenin, activi6eo on the utility', 1994 ..... request. The four towllS ..sed S261 during the "'I"'rtin, period in coocillding tlK:ir rlleK1lin, octivioo.

• Nonhwe.uem Public Service. nile ""I""!o1 in four <;<:nlrll Nebrasb. rommuniliel woo cooeluded lhrough I otg()lialod o<UI<""",1. TIM: 00\1 of me re!>l' lati"" ... ·as $5]' 194 of .. hich S 17.823 "'11 ioturred durini the rep:>ning ""ri"d. A Fund ,..imbo.TMTTlent ""Iu.t.!o1 "'Ii .1<1>110 Ibt ",ilily in IUM 1996.

• The 1990 nte reqUCSI by KN E".nnu oI«nual Neb ... b rommunitie:s in the utilit,.. me .. as 6-9 ... as ~vaI in !be 1ItiJity', (1_ by the NdIr:Io. .... s..pr- COUlL The CO<! of the ....,.1 ~M phase of the regulatory prot_ WIS S12,92O. Tho utility ..,. asko:d 10 rei ........... die Ftond. in July 1996.

• Peoples Natunl G. Company fi lod rc.-",Ie ""I ...... 1ft lwo of the \IIi' i1)"'1 thm; .... e 01«1. Tho IOWn l mcluded Peoples' enti", ...... ~ terriklry c.<ccpt Li"",~n. For tIM: r .... tlime ,ina 1"'''&IIe nf tIM: Acr. the twO rale ... "" hired differenl """'U lIMI' . n.: 94 "OOlJlIIInities in the cIStern Nebra5h ... ..:bed I ""ioti.ted ""ttic"""'l with the utility dllfinll the ... poninll period and spent $1 47.1~ on rate ... gulatioo. n.: II .uburban Om&ha U)Wn. ift JUte Aru. I oould nl)l. ... acb "" .. meM .... illl the UlUj,y I.IId filed . uit in t.a..c:Qter Counly Di.mcl Court Rile Area I ...... 1 $63,146 r", .... ",gull' ion durin, ,110 reponin, period.

Technical Assistance Througboollhe ... porti., period. the E".nnu Off"'" pro'ided lS.i>WICC 10 n"IW'IicipA\

official. during all phase. of tIM: regulaklry pnXell ll mandated by . w.ull: . Typical kindl of 1.I,;\ton« include org"" izinll ""d providillll suppon ...... ;<;<:1 for rate

.... commi'tees. publir.hinll ""riodic i"u." " f the Na!ural Cas Rar. R.gulmjo~ Updmt in each utilily', """ice 1fU. i .. uinj: ""IUCili fOf proposals for prof ... ional ...-vices. pfmi dina inforTllllioru.l ........., ..... _ ,..,.pondi., ,n 'I'ecific inquirie5 reproi", lhe

.egWatory proceIS.

or App.aling Req .... tsln 1995-199$

Grants and Legislation Grants

Durin, the ClII'n:rlt rq><><Un. pmod. the Enercy Offoce received sevenl new t>n<·lime

or proje<Hpcdfi< pw>ts for IISoe by thc: """"'Y Of (Of reli""" ""lIpS. These De""

pEIIf. I(IIali"l $141 .834 in 1m· I9%. are detailed hoere UId in 0Iber Otttion ... indic.lCd.

U.S. Department of Energy

Altemate Transportation Fuel In 1994, ~ f.netn' Off". re«i~ $ " ,000 Crom tile U.S. ~ o f &le<JY for

alternate uansponaOOn fuel pro;ccu. The: -acncy prod..:ed Nebmd;Q il.1~1'nIlU F..d.I SIOlitPts: il. SI(J~ DirfCl~ IIIlCI thc: Nt~ IolUrNlli, .. T..vrsptJrttJ/imt Fwls /la..Jbooli with IbefC and ocher funds oonuibillcd to the pmjecl. For more about Ibis completed project. oec pa&e 14.

ClimalaWise In 1994-199'. the Enefjy OffICe -.IoU Klcc!C<J al <:I<le of ""vcn pilot .... 1eS to 1«<';"0 a

two-y .... S50,OOOCliml le Wi.., ,nnt C1imale Wi" il' voluntary partnership bet .... ",," the f«lenl ond OUte ,ovemmemsllIId indusll')' 10 IftCTCu" .ne'gy . frl<iency and reduce pollution, See p&8C 12 lor more inl<>rmalion obout Climate Wi .. Kli,'ili ••.

National Industrial Competitiveness through Energy, Environment and Economics

In 1994-199'. the '~l\Cy roceivN I SI.25!1 Font for the: F.nergy Offk. to prOOlOte parln<:r,hip' thlt develop I nd de""""t .. te odvI""es in oneriY officio""y and clean prodoct;';m ~hnolniiel. In 1995·I996. the "IIC"'Y t • ..,..d S~ 6S fmm the originol gnnt with. new Font nf S).~831D promote !he federal proerarn to indu,lric.< and municip.olly. owlltd utilities in the Sllte Ii well u providing technic.I ... istance to interested fmm and city <>fficial •. By hne 30. 1996. $1.157 remlined ulUpon! from Ill< 110'0 jIl'lnL<.

Sustainable Technology Energy Pannership Pilot Program In 1996. !he Enc'IY Off..:e m:dved I SU .• 2R Su.t.ai",bk T«hnoloiY Ene.gy

I'arlnorsltip PiIOl I'rop'&m vant from the Nlli"",1 R.newable Ene.,)' Lobonlory 10 prnvidc partill fundillJl 101 monilorinll wiDdspHd and direction u _II u ..,Jar C"""," I I eighllocllioru in Nctn.tl. ~ N._b p",. .. Association. under COJIInCIto!he "IIC""Y. is !he project

coordi.....,.. lor the wind SlUdy. As of Juroc 30. 1996. noo\C of!he", I...:b; had been ope" by !lie """'". Association. For """" ahoul Ihi. project. ...., JIIfU 12 and 13.

Weatherization Assistance Program In 1995·1996, !he Encrp Ofro<:e received I S~8.alJ annt from !he federal energy

"cency to &II",,"nl Weatherill1ion AUisl.lrlCe ~ lCtioities no Nchraok1 llIe ll!"fICy ad<kd Ibex roc", r.....a. to previously ulI6f'C'U fllllll •• 11oc1led to Wead!crizalion AUisl.lrlCe Prozram Landlord Loanl to • new effon _ ~1"w·mart .. ·r.llC ItIOftpge loans for prosf>C'<\ive lou"", bu)US on limilN ine ......... For mou information about !he Weatherization Energy Ellkie1M Mong_tel. II« p~ 2.

Western Regional Biomass Energy Program The W •• lCm Rev",,"1 Bmrn ... EncrD' Pro"am i. one of 'he re~onaI projeca """'"

the COIInlry de.ilJled 10 develop sllorHem\. tOiSl.cff«tiv. u",. for biolt'WO ",,,,,,,,,,t:< ••

renewable organk maller, including fore'l ",.id .... , a¢cullnnl ero,,, and WOSlU. wood and wood WUI •••• nim .. 1 W""le •• )i"".lnck orerolion. re.idue.. Iqullic p llJla and

mUDicipiol wuleS. Ncbraokl', "rion is adminiSl<n:<\ by tho! WoslCm AIIII Power AdminislflliOlL

TWD .~y , 0prHellll.ives """0 on I pI'Oif1lDI ""'isory boon!. which direcll lM "'JionaI propam as woll u speciric projeclS..

Duri", 1!m·I996. .he Encru Of rICe =eivod .,... ne .. pun from IIIc rellional

hi"""" proa:ram 'oWillJl U.OOO. To this panl .... ad<kd. SlS,OOO Jlftnl"""';'~ in !lie pn:vi"". "'portio, period. WI IlOl spcDI. Both pants ...".., allocalN to

pu""" !he dc""Iop"""" of on 8.S per«nl cthD!oI fuel nation ,ystem in the SIll'" See pagcs 14-IS for mon: informal;'" on !hi. pro;oc •.

A total of $5.015 from I ~.lIOO binnw.. 0n<1llY granl "",oi.-«I in 1994-I 99S WII .pom to provide n.tioml u lCllile br~Ul top.bilil'" for • c""f.fflI<:e "" biocnerlY rcoourocS to ae!lCroto electricity. The conf.rellCt wu held in June I !1'15 . The bilooce of the fund. remai n unspent.

U.S. Departments of Energy and Agriculture

While no new fund, wen: "",ci"cd from tho fodcno) Ocpartm<:n1S of EntrllY and Agricu lwre in SUppeli of the C;O"'.mon.· EIhanoI Coali tion dllfinl tilc reportin, period. ",evlOll,ly .""marked funds fOl an CfIvironmcotal coofmncc were Jpenl. See page IS for more information on thif coofcmo;;c.

u.s. Environmental Protection Agency

In 1994-19!I~. the I~IICY ~;'·ed I DOD--COmpoliti "" pant of SIOl,BJ1to dc ... 1op I ... tiooal uainina: propam Oft ho.., to uK lIudcnt interns. to perform

li,htinp""its in instiMiooal build;np. T1Ic lrOoinin8 pro ....... .... baled. in part. on the Enerp OffICe', '* 0( IllI<knti in toodoclinJl Green Liy,a .nerD' .u4ilJ; in otatc biliklin, •.

In !he c ...... m "POllina: period. Energy Off",e staff pre .. nlcd wo.k.oop. in W .. hinj:lOt!. DC: PonJand. Mline: San Franc i .. o: I'hOcn;": 000 Boston. AS I .."uil of tbe workshop' .• imito •• Iudenl·

GRANTS ~ND Le01SLATIQN

"

run effon. are underway;n six states , Th< Energy Office liso pIlbl;,hed a haIldbook ckscribing how to "pentle • ,tudent <>peroted program.

By June 19%, !he agency hod ,(>Cnt S85.966, Th< balance of the funds will be spellt in !he ned fi,..,allear

1996 ANNUAL REPORT

"

Legislation No sign ificant rederal energy legislatioo affecting Neh, .. hn. was ad<:>pte<l by

Congre .. during the reporting pcri<><l. In the 19% .... ioo of tbe " ate', UnicatnoTat, "",ve .. ] energy i .. ue. of ,ignificOIICe

we .. acldrt,~ :

• 'Thorough examination. of the impact offederal de"gulation of natural ga, and electricity and their impact on the 5tate we .. begun .

• A "'gisloti .. cOOlmiltce i, e ,ornining method, of increasing ethanol production and u,," in the slate by looking at extending p,oouction incentive, to non-groin feedstock>.

Fiscal and Organizational Notes

Financial Review The a.ccompanying figurtS illustrate tho

Energy Office', income and exponse, from July 1, 1995, throogh June 30. 1996, which amounted to Si3,490,820 and inch>de, fode •• l funds .• tate funds and oil overcharlle funds.

Approximately 49 percent of the agency" funding clime fmm oil over<harge fund., a four perc. nt decte .. ~ from the p"'viou, year.

Oil o vercharge fund. and ,tall: .. veranee {ax fund, increased by nearly 23 percent and about 19.5 percent te.pocbvely_ The appearance of on inc,..,ase in bo.,lh 'ype' "ffund, was, in fact, increased activity - loan, being made and rep.id.

State funds came exdu.;vdy from ",V ... lICe taxes. No .tale general funds h.s t: been oppropri.ted to the Energy Office since 1983.

Forty...,ight percent of all expenditure, were used for oil o.'.rchatge aid arod "on!r.>cted project, listed in the Oil o.crchargc Fund, ""lion naIli ng on page 6 . Eighty-one p<",enl of a ll fedaal fund, Were .xpended as aid in {be Low-IncOOle

Where Tile Money came From, 1988·1996

Wliere Tile Money Went, 1988-1996

F ISCAL AND O R(aNIU.TlOf<IAL N OTES

"

Weatherization A .. i,tance Program. In exceU of 82 pcroent of a ll ,late ""v .... nce LUe, were 'pent as frid ~ndeT the School Di'trict Energy Effici.ncy Program.

A filII ""counting of the Energy Office funds appears in figure' 12 and 13.

Overall, the agency spent 'Iate. federal and oil overcharge funds in eight diff.rent way' , Aid. which make, up the largest portioo of the agency" npcnditure, . con,i,ts of money from the tlme souroe, which i. received and passed 00 to delegate ogeneie. or d irectly to

beneficiaries .• uch as s<hooh. ho'pitals. smail billinesse" local governments and individual, . Mo""y ' I"'nt f'>r '>pe ... lioo, pay, tr.vel. tel.phoDe. computeT>. ",laries .nd other office expense"

A more detail.d ""counting of the oil overcharge fund. appear, on pag •• 6 and 7.

Organization "!be Energy Office was created in No, .. mber 1973 •• the F""I Allocation, Office. a

divi,ion of the Neh.-a,h Department of Revenue. TIle agency had independent ,talu. from 1977 to January 1987, when it became by Exw.l1i\'C Order of the Gt,vcrn,,<. a divi,ion of the Governor' , Policy Re>eorch Office.

n.. OJganizational chart below (figure 14) .h<,,,,, the funclioo.l structure of the Energy Office during the reporting period.

Nebraska Ertergy Office Orgartlzatlon

ASSISTANT DTIlECTOR FOIl PLA!<NlNG

ASSISTANT DIRECTOR FOR OP!HlATIOSS

S<cr<W)' I!

lnf"""""'" Sy_ S""ci.lti OIfSu"""OOr

1996 ANNUAL REPORT

"

Pub!i, lor""","," Offic<r lJ

Issues and Trends

Introduction At k.t .,"' ..... ly. 1ho Eller". Ofr"" is

""luired 10 "idtnlify emc.Jin. trendf

52.7 pc=nl in 199~ - "'e,. for petroleum and iu ,..r,nal produc" used in the mle. N.lnsh' , ptlrOleum bill for 19\1j I<Ukd SU07 billion.

EM'IY COOI"""pli"". which """, fu<ll .. "","IIWO~;n. again rose in 1995 La an all· time ,""on! of S9U trim"" British lhamal",,; ...

ToWl Enervy Exl*ldltu'H . Ntb,., ,,"-, 1970-1995

All ocdon - IUidelllilll. commen:iaI. indu ..... 1 (includinl agriculru",) and D1MISpOfUIUon -recooicd ""'=_ in COIn". .:omumptiorl. The u.nsporUliOll and industrial S«IOfI I'OCOfdtd \he Iar&csI po:rcen.Iage inauoes. 9.3 pcfCCnL and S.2 pen:eDt n:specti""ly. Both scaon - ..... sponatioo at 17'0.7 trillioo British IhermaI uniu and i"",,"trial .. 1620 trillioo Brilish Ihem\;ll uniu - IItmd alltime record bighi !let durin, lht cwnd oil-shock }'eafS of 1975--1979. Cootriboltinl fltlOr> for the i",,~ w= the ....,nK ouoe ecoI1omy and rami!! ... as well IS ""w factors inlh .. ""in, lht tranlponation "",lox. Th<><e i ...... are addn:.;ed in tho Top Stor)' for 1995.

relaled 10 encl'J)' .upply. dc mar>d and c~.,ion and 10 lpec:ify Iht 1.~.1 of IUlewide o""BY need wj," in Iloc follow,,,, K<"IOB: qricullllrli. C<In'IIncIci.J, .aidelllia' . iNluSlriaI . .........,.uci0ll. utilitia.landl JU"ft'llDCftl..:' This secliOllllddruses Ihooc: JUjWn:""''''' .. _11 as ehmnicle$ inlCmatioRal. nlllional and .tlie \rends and , ........ Energy Costs and Consumption

Fo< dle .i ,,11 «IfIS«Utiw )'«r.

Netnsu', lOlalenern bililOppe<l ~l bill'on _ U ""'t1y 51.43 biliiOil in 199'. Allain . • roe .. oIl·time. n:c<:Jrd high "'U e>tab~ohcd. owpani"lJUl yeu'llouJ of $3.B2 bim"",

"The cosl of the 11I1C" pc:lrOlcum depend<:""" remainW un<:hanaed. Just over half of oll o""'V •• pcnditure. _

Whil~ ellCTlY UK in lht """,,,,«do.] '"10, se1' =ord at 124.1 trillion lIrili,h thermal uniu . lht incu.o .. W"" Ie .. than th ..... trillion unils mote 1ha11 1994.

Resideotial use incre....,d 10 134.7 trillion Brili,h thermal unit>. I 1.9 p.",,."1 rise and ~ newall-time

'lI'

\0 stn'iee. u .. ODd productioo

in f(lrmalion;" plOyided rOJ e lectric prod"""fJ in !be Elecuidty porIioto of !his OCCliutl of 1110 .411111U11 R~porr.

The Top Story: Nebraska's Changing Transportation Picture

'" 199$ Md 1996, lht e""'IY issue affectitlg !he zreate.ot DUmber of NebrastanJ ..... nor one. but ... ....,r.d. on ",laliOIl to chili,.,. in !he ..... of '''''I"&Y in !be tran>porUllion occtm.,

• Huau.o.tin, '''''''Y pricc.s. • •• chonllinll fuel-mi"B for ps-

luuJcn. • incre •• ioi hi,hw.y speed limits. • dri~inB '""'" mile. eo.ch ye.,.. and • changing 1 ... 1. of JO>CT1Im<ntt.uation

on tran'portation fue ...

10 wen O\Itsi<le Nehral.kl. from

''Y~ pi is rdIilvd>J dIcIp". B __ "'eOOlld dIanp-." 1DOIaiII, public b ...... pdII:r

ImOUtI1!I oI'fIIIJ troe- orllllpr ;IIl=llimn... Cciuolily "" _

peuoklltD is btlnt ~ued.. EYClIiuIJy dao.Ear!b·,_1rs will be ~ oI"lheif .... y .....

ftOO'WoiI, RoW mIlCh _does it mate 10 fill Ibt ~I with 1uw1; ... noilMF .tpOn....nlily vdtkJel, <kJ<.1.nc U WI • poalNc

, and 01," bad! into ... "",~,ella'C'depeI ~t1 t CIl!ndJt,OII dIai e~isicd llllle..-ly lm1 The IIdtIJilock ..... ""0( IiPi _ppIita. ....,. iI«mes. could bu.w.o·"""" pllarul ." . , ;;; .

,

I!*,,",!-~ __ i • • 1*12" .1_

ISSU!$ AND TA!NO$

"

While rome of the transponation .lements are not new, othe ... KJ'<=nt ~ rev .... al of n:ccnt trend>, and when taken as. whole sugg.st an iocreasing 0>'.raI1 petmlcum dependeocy for N.braskan..

Cheap Gas and Fuel Taxes

Energy Prices Despite the relativ.ly low cost of gasolillO and other lt3IIsportAtion fuels for most of

the reponing peri<>d, • new .II -tim. record of SI.533 billion was spent by Nebr.,kan, far transponation eo,t. in 1995. Bec.use fuel C,",a rase dramatically in the spring of 1996 - from $20 to $26 for a harrel of oi l and gen.rally 51ayed higher for the remainder of 1996 - transponation c'"''' for 1996 are likely to sel anolher new record , 'The 9.3 percent incr .... in lt3IIsportation expendirure, from 1994 to 1995 rel""senled the largcst ",re.ntage increase since the oil·ohock of the 1970..

Americ • . unlih European nation" ha, che""n to maintain a cheap tr""'portation Cuel 1",licy where the total C'"'t of .neriY i, not iocOlpOrated ioto what consUTTlCTh pay, These "hi<ldcn "m""' include cosa .. "",iated with pollution from the use of f"".il f""l, and military .""IS of maintai nin g a pcnnanenl def.n .. contingent in the Persian Gulf.

Mo", energy .n.lysts""y the new .olalili ty " f "il pricc.s has been caused by a change in bow oil rermers ,ond""t bu,ine ... To incrc..., profia. most refiners have adopIed "just in time"

prod""tion of r.fined oil prod""a '''''h as gasoline, dic,e1 and oth.r fuels as well as sharply curtailing the in>'entorie, they Dlaintain. Another fa.cto.-tha, didn'texiS! fi.e y.ars ago. i. the fuels future, matha. Energy mar\;e". li\;e other commodity toatha. arc utrcme ly price and event .. nsiti>'e and can exaggerate price fluctuation •.

During the rcponing peri,,.], a now fuel ho:gan ho: ing used in California whkh e"""erbated price nuctu.ti')(1, in the spring of 1~. 'The fuel i,

en\'ironm<ntally cleaner than the reformulated g .. oline ""ld in other .moggy region, of the nation, However. one aspeet of the nation', transportation fuel 'ystem has gone unnoticed; ,,·ith tho: advent of cleantr burning fuels that are used only geographically or seasonally. the ability to move diesel or gasoline from one ITgion to ano,her to m~t

<kmand ha.< heen compromised. For .xample, only California refannulated gasoline can be used in \'<hicle, in Cali fornia, A,. result. gasoline used in S •• ttl. OfTexa, cann()( be lt3II'ported into California to meet unonticipated demand or product di.ruption" "The result is often un.nticipated price spit e"

AI"" during the r.porting period. the m",t popular alternate tr""'I"Jrtation fud in lhe state. e thanol. experi.nced price ,hock< of. difkrent type. Beginning in the .pring"Of I ~. the primary feedst""\; used in the produ<tion of ethanol. com, ho:gan to rise in price. By June. the price for a I>u,hel of co", t'>pped $5. nearly double rec.nt prices for • hu,hel of corn. 1be price ,urge, were attributed to the lowest corn >toc\;pik. in 2[) years,

Ethanol prod""tion wa, curtailed at some plant, in N.\>rn.s\;. as well as acr,",s the nation. Energy :maly.1< projected that 1~ production wOltkl ho: ]0-40 percent ho: lo,,'

ANNUAL REPORT 1996

22

1995 production level, bee.u .. of the rise in corn price" Ethanol prod""." have indicated that feedstoc~ c"''' must be Ie .. than $3 a hu.hd 10 mainlain profitability.

Nebraskan' , hould expect pric. shoen for tran,ponatiOll fuels in the fu tur. , AI. one petroleum in dusl!)" watcher n()(ed. "a disruption "nywhcrc lin the world] i." price shoe~ eve!)"wheJ"t ,"

Fuel Taxes During the hcight of the ga,,,linc pric.

inc"..." in late April 1996. ,orne policymakc ... calkd fo.-lhe repeal of a portion of the federal gasoline tax. In 1993, the fedc",1 tax was raised by 4.3 cena a gallon to I SJ cents with the increase dedicated to budget deficit reduction. A repeal of the 199] increase wos ,uggc.sted by some in Congress. 'The increase generat .. S4.g billion annually.

In May 1996, tho: House of Representatives pa,sed TCpeal of the 1993 tax inc ...... but tbe issue failed latcr in the yelIT in the Senate.

At aboot the ,ame cimc a. """" American, weTC see\;ing a rollback in a ponion of the federal ga, tax, """" Ncbraskans were ,uggesting the "ate should recon.ider • plonned increase in the state part of the gao tax, Nebrnsko', gas tax ;, comprised of two parts: a fixed

20 mile. per gall"" or .... """e as low '" 14 miles per pllor\.

Tranlporalion Energy Expenditur .. Compared to All Energy Expandhurel, Nebre.lta, 1970-1 i95

What ,,," ch"",cd dranwieally in tile pa>t 15 yo .... ii tile number ofmotoooycle •. In 1980. more than 52.1XX1 mO'orcyclo, ""ere reliMtrtd in the .... Ie, but by 1m, the numbe. hid dropped ' 0 11.696.

While suhSlaruial ruel effw;:icncy .lins ha,.., been

made in pa«enger ""hicks si""" 1975. \be same is not true for truch. ""cording It) a 1995 EnvifO/1"""ntall'rotCClion A~ncy >Iudy. """,nll"r c,," avcnccd more tlIaJ\ 28 miles 10 I I I ..... whikbuc:"'a~ sliatuly m<n!ban 20 miles agall"" .

When Nebrasbns , ... ilth from drivln&. pas ... ng« elf to a tnlCk. "lUI or sport utilily vehicle. t .... y an: ",ually tro<iing in a men emcienl ~ehicle fOf voc WI il leu efficient

So . Sp-setl

---_ .... € _ .... -, ..... , -._. __ . ......... i~ ~9'J4 . the federal ,o~crn"""nl, in an cffofl \0

R':tI""" depcnde""" 011 forei", oil. i~ 10 55 miles pcr hour 'fJI'Cd limit (In all federal hip..·. )'5. In 1987. Congre •• allo ... ed speed limit. on T\II11

lax of 12.' cents a Sallon Ind a variable portion lhal i,..,' q...ru:rly by the .tate·, Board Df Equalization bucd on ...... consttuction pI~ fo< the ,,"xl year. In May 19'96. tile Roanl decided l<> =I""" t .... pl.nn<>d inclUl<' of .8 cents a gallon by half . ..... or July 1996, Neb<a<b'. olloIO po IaI will loW 26.1 cenlJ ..... 1oft, fi fth hiVat in the nali"" oe<:Ofdin.lo the , I.ie:". Dc:pantntnt'" R.,.d>.

The Return of Gas Guzzlers

Some .. ·hll tea. p"",.,...,ced in NebfaIU i~ lhe dram~t ic ~hangc in tile Iype of vehicle. being driven, Nationally. 8CCOfdill.l 'o tI>e fedcrlll Dep..unenl of T ...... JJOfI:M;"", four out of l''''ry I ... De'" ,-ebicl .. pun::haoal Ill<: d .... focd as '1ilht INekl! ," "Lighl trueu" inclU<k ~aru: and

. port utility vehicle •. Nebrasu velti~1e numbeff Ill<:

comi<lc:n' "';\.h a ~, aFiculhn l Slate _ ~~ percent of the .. ,"" ,,,hid.,. po.rrch....d in 1994 and 199~ were tnlCu. Vln, and spotts utility vehide •. Accordin. to the U.S. Departmenl of EncrJ;y, vehicks""" ... u~ popular fPO'U utilii)' ~Ies ... wally 1"1 '- !han

i.te"'Ulte highway, l<> ril<' to 65 mile, pcr hour. In November 199~. the i'reSidcbl signed leli, lab""

repeali", the fcderallimiu and IOII","in, .... leJ 10 SOl speed lintib.. la 1996. the .ute', UnicllITOCrai pasoed it.isblioo ..... in'.p<ttIlirni .. on intemale

and .late hi&!>WIlY" 'The spo«IIUni' change< were phaocd in and bc<oame effective J""" I and ScpICmber 1 "",,,,,.the stale.

While tllon: ",c SOtnt ,,"ceplion •. ~d limits on inteDtat. highway' inc,ca.<cd tu 75 miles ... hour. Speed limi" 011 mos.t .I&te.-k incn::aocd to M mil .. an hour.

......,.,.din.1O the Amm","" Council for &II Eoeru Effid trllllco""my. lnlveling .. 15 mile< OIl hour in<telld "r SS ~h. in ... n..-.,e 50 pcrum increase ill flK'1 consumption. Trlveling It ~ above SS mile. an .... 'u, aloo incr • ..e, I UlO exbaust emi",i", ...

The Amtrit:"" T"",king ....... >ciati<mo' Maintrnane:e Council ~ f(lllM !bat for eacb one mile an hour incn:_ in spcaI, I ...... i. a 2.2 percenl incre .... in fuel u"" and a I 0 to 15 pc",e nl increlLSoC in mainte ... """ c,",u .""h .. tiTel,";1 and CftZine wur. I .. legislative \Ulimany, an Omaha tnlCUn& rtml. ownoer .. Iimated that rai.ing spe«llimil. C<IO.Ild add S25 a day in fuel co'" for truck.,,_

By May 1996. tile NCO<' Yort 1Tma reponed IIIat all staIei west of \be Miuoori Ri""r ucept CftZ"" and NOfth Dakota bad raised.poed lim;" on rural int.nate: highway' lQ 70 mile. on ho<lr or higher. Montana lICta top .... ytime l; m;tthat ia ............ bIe and prudenl," r __ luial Ii,cd

speed lim;lJ.

! '1'bey!tWHt fod : ~!>nI<rv..u"" _1<1 root be

: "'-"-" - ...,....--. : lO,,,,w.,,,at sbould WC:~ i .Ipendj", simply ~. ~ ; /:t\InO:h may btA_r , •

ISSUES AND TRENDS

"

Higher and Higher Netns~ lib

other Amcri~&ns, au mseUn, moee &rid I1I<lI'I: mile, uch year. S;nc~ 19~5, Ne ..... 'hn' ~.ve bun adding a billie>n /IKII'C miles lJav.led .,·cry IWO 10 four ye ..... In 1991. mot(ll" \'Chicle miles toWed 14 biUioa miles accordin, w lhc .we·. Dcpanmcnt o r Ra.d,. 8 y 1995. Nebnoshns \raveled 15.8 billie>n mileo. Trend, ov., ,two pan

Molor Y&hicle Mile. T ... ~ in Nebruka, 1178-1995

J K ye"", "'.

illustraled in ~:::~:~;::~~:;~"~;~; This trond I Ncbra,ka l:IeI:om .. more populou, and iu chie. conlinue country'Ok. Whi!e popu lalkln trend, in central

'il 'III' Illiil'dn

and wellern Ncbru.kl lLa>"e sUibilized. even there poo;>Ulation _ ntral i"". and (l{i;e. foclon .""h .. employmen! and how.in' ........ uirin. Nebraskans 10 comm .. '" further and further foe work. bea.ilh. od""ation, commerce ."d ple&$lU.

The Direction Nebraskans Are Headed

..

..

T..,..w. ,,,,dined in 1995-1996', lOp srory indicate Ndfiskan . ... ill be ""yin, mort: rOl" lraftSpOo1alio.. fue l. in the r"lwe '" ,,-ell ... "'Iocalinc a!ar,eI' ptrcentqe of their bud, ... 10 fuel COSII. unless lbe treJ>di outlil1oCd in !hi. "':lioo chan&<".

As a rct.ul~ the nate ",·ill i""",as< ilS ~n ener.y clcptndency even further.

Electricity

State Production and Consumption In 1995, enern uK by lbe 'talC" electric uliii'i<:. w., 269.H lrill i"" Brili,h thennal

un;(;c . • n incre, ,,. of 12.5 percenl from the 1994 lotal of 236.3 Iril1ioo Brili sh lh<nnal unil', .nd a IICW all ·ti_ T«O<d. N.bfaskaD. paid SI.ll billlon for tbe clectricity they used in 199', an all-time record high.

Ekelridly producod ia the SUIC i. producod fn)m coal. n""lear. hydroelectric . naM~ gao.. and ",,!mleum. 1k tim tine fuel source_ "'prt:Stnlthe ... 1 majorily of electricity "'"""""' IIsed in lhe SUIte. Natural ps and pttn>lcum (Of the p .. Id""Uon of clcctricisy are UKd primari ly rOf ..... Ia ""akin, unit. thai ,ellCllllly openl" in the summer.

SpecifICally. tketriCl.l production in 1 99~ ;""",ax<! by ),332 million tilowanhours t'mm 1994 10 ~.279 milli"" kil",,·anhours. a "'w all-si"", rccunl. Ela:lricisy from roaI. II 16.080 !!lilllo.. ltilowanoo ...... a.x:ounIro rOO" 63.6 pc""'''1 of the production. Nucl ... ~. at 7.485 millio.. kilowanhours. accounted for29.6 pt",ent. Electricity from hydn",,) .. ~ units, at 1.426 million tilowatthour$. or;~O\UIted for 5.6 """,enl of all power prod""lion , Naluraillu and pttn>leum acCOunted rOl" j"'l o.er one pc"'e"t, A new

AHNU"' ~ REI'ORT 1996 ,.

50Ufrt of fuel - 5hn:ddcd Ii=KCOUnted r(ll" jusla ...... Uon of ~

"'''Ut of on<: ~"t. juS! >lisfnly .... !han pctroJwm II.Ied fOl" electridly prodUCIiOll .

National Trends The lrend of !IIilily dcregulaliOll

continue. In rocus on .kelri. pow., companies. As wilh the dcrt08uJ,,!ion Ihat occWTcd in the natural gas industry, lhe movemenl to "unoondle" the el""tric utility Iy,tern il cominl f"""two dimctloas _ lhe Fcdorol F. ... rV R.",lalory Commission .II "'" national le~1 and ,W&-le~1 public utilily CQIM1issio ...... ~U ...... ..:Ilin'~ would 5Cparate. ulilily"a po ...... ~on. IraMmi"ion and local di .. ributi"" .--.

Initially, dut:lulation ...,..Id olio ... the IArJ<Slelectri~ilY IUCrs 10 di=~y purclLa", the el""tricity they ne.d from any p.oduce. and ship il o.er lhe linc> owned by the uli lities.

11 il anticipated lILa! deregulation will occur fi .. t in the areas where .]""lric rale. ate hil!Jle", pan;"ul .. New England and Califomia. Duril1l the rcponinJ period, ~v .... ~.11 groupo of ~ in ",VttlllWeI beplt derc,ulal<llJ !all.

The 1arJe$.' lesl in New Hampshire ilIoolodtd 16'OOOc .... ~ The ... se dere,ul .. Of)' plans uny.iled 10 due. ~Iy all f .... phaoed effort spread Mer IoCvcraJ yem. &lid e~lCndin~ into the next century. Usually. residenti'" C"'tome .. ore in tbe r.nal dcrellulat"", phase.

Eleclric utililies in 1M olale arc walching lhe dcre,u lati(Jn dcvcl(>pmen" very dOllC ly, In li;e 1996 ",,,ion of lbe otate·,Ic"llot= .• reilOlutioD was passed collin. (II" a mUl li.ye ... 'Iudy of dut:,ulllory effects on the .~', publi<: P""'U IYltem Howc"et'". she relMi .... ly 10 ... CO${ ohlenri<:ity in the .... Ie may r"",.taIl oi,nif"''''1 dl""," 10 the tradisiO<lal "I ilily IU""tun: in Nebr2>ka.

"Ibru iSS1lC1 "" Iinlod 10 electric "tilily dercB"lati"'" 00'" I .. deal wi' h cost .... cIt as power planl COI'Iruu.:1ioft incurred ..... li<:r by ulilitiel for whi<h oralC of "'Ium ha, heen ' ....... nlccd, minimi,;n,

TalC 'hiftx from one CU"omeT group to another such a, from industry to residential cu,IOIIIers and bow rate competilioo could undermine energy efficiency and renewable energy growth.

State Issues 11>c issue, confronling !he sme·,

ulilit;e. geneTally pan>llellho .. in other region, of lhe country. however. wme are truly 1,,,,.1 in nalu« ,uen a' rower line con<lruction.

Deregulation Issues One of the iss"", related 10 deregulation

- the Tate, charged for ",e of milily tran5JIlission line. emhroi lccl Iwo "f the slate. power provid<rs. Nebraska Public Power District and the Municipal E""rgy Agc""y"fNeh""h. In November 1995. !he tWO agreed 10 withdraw legal and federal regulatory aelions and to mediate a wlu,ion. In Fehruary 1996. An ag«e","nt was reached regarding the rate charge •.

In a ",Iated >ction in Arril 1996. !he Federal E"",U Regulatory Commis,;on ordered ~II electric utilili •• in the nalion to op"n their transmission .ystems t" ()U",idc e""rgy providers. and 10 chatge outside energy pmvideT> !he same tr.nsmi .. ion rate< they charge themse]v ••.

11>c rrevi()Usly mentiooed multi·}·ear legi,lative "udy 'parle<! public debale aero" tbe slate of whether the ,tate·, public power ,ystem ,hould be privatized. In lhe pa'l .. vaal yean. 'wo memho" "f public power boards have ,uggested tbe sale as a melhod of generating revenue to be used 10 lower property laXe, .nd for ,,,beT u .. ,. However. while !he i .. "" wiU be e .. mined hy the legi'lative coounittee. sale of lhe ,tate ·s .y.lem, will not be .. ri"",ly coo,idered, according to the coounittee· s chairman.

Sale of Western Area Power Administration

Some in Congress and lhe Ex""u,ivc bronch hove proposed !he sate of We'tern Area Pow~r Admini.lnltion as well .. .. veral OIher federal power marXeting 8.,<!eocic, . 11>c fedcrol agencies produce and .. n ine'pen,ive hydropower to

pubiiciy-ow""d electric ulililie. ""d .late and local governments. Western provide. an e"imated 10- 15 p"rcenl of the state. annual electricity needs.

Throughoul the TCp<>rting period Con!",,, continued debating the .. Ie of 0"" or more power admini.tnli,m • . Howeve,. during budget ""getiatioos. pion, to .en any of the p<>wer administratioo except Alaska were s<ultled. PI.n, 10 balance !he budget may dictate ="",idcr.ti"n of the .. Ie in the fuNre .

Kingsley Dam Rel icensing 11>c twelve·yeOT 'truggle to obtain a

new JO.year ",,,,,,,".1 of lhe hydro!"")wer dam at Lake McConaughy, nooh of Ogollat .. cominued. As of February 1996. m"", than $20 milli"n had been ' p" nt 00 license renewal i""". occording to the Iwo utililies lhat e>pe"'le bydropower facilities un the riveT

11>c Federal E""rgy Regulatory Commissiun license to '>p<Tllte Ihe hydropower focility was ori~inaJjy is>ued in 1941 and expired in 19~7. Since that time. only annual e>perating Iken ... have heen i .. ued pendin~ the resolution of seemingly connieling i .. ""., _ irrigation. power generation. recreatioo, fi,h and

wildlife welfare. municipal intere"" and fIooJ conlml. Any wlution i, further eomplicatod beeau .. the Platte course,thr""gh Wyooting and

Colorado .nd action, Iaken there can have iml*'t, downSlTeam in Nobtaska. In mid· 1995. governor, from tbe three slales a~reed to continu< di!IClL"ion, "n ",,,,lving water and environ,""n,",1 issue>. lOC di'IClL"ion, began in 1994 and the fede .. 1 government wants the states· issu<s re,oh'ed hefore a new licen .. i. issued.

By June 19'M, a long. term licen,. ", ,,,,wol for the hydropower facilities had no, been i .. ued.

Pauline Moore In October 1993. Neb""Lo. Publi< Power Di.triet aPflToved 'pcnding $57 million to

l>uild ... cond 345 kilovolt tr.nsmissioo line between the PauHn" .uhOlation ",ulh of Ha.ting' and lhe Moore su\lst'lioo near Crete.

11>c utility said the earlier I"". of a .imiliIT li ne in ~ 1993 wi nd .10= p<>inted to a wc.kne," in tho """,mi,,ion 'y<tem. 11>c utilily al"" cited incr.~ tran,mi"ioo sale. and elimination of boI.titoecks as faclor< in the decision I" build the line . Opp:>nents of the I'''wor line questioned the need and ,afety of !he line .

"Through 1995 and 1996, the ptoce .. , t" ""'lui", the I.nd over wltich the tran,mission line w""ld pas, conlin""d. Acrual constructioo of the power line began in May 1\/95. Service 00 tho line began in lato April 19%. AI !he lime. 12 la"",uiu in OWO,itioo to (he power line were p"nding.

In June 1995 .• thre<>-year. $65 millioo, definitive fedaal study of the effool< "f clcclromagn<lic field, generated by !Tan,missioo lines sucb a, lhe Pauli"" Moore line

ISSUES AND T RENDS

"

..... boJiun .. lhc Dcpanmcnl ofEnngy'5Oak Ridi'" ....... ..,. Other hi&hlilhls durin • ...., period: • In e.¥1y 1995. UIICOIII Electric System an"""nccd

its imcnl;oo 10 join 5evcral DOCI-Nebraska .... ilioo ;n buildin, a coal-find elcclric;ty planl iD ....-thwe.t.m Mi .. ou'; . ",. utility said Iml il could

acquire up to ISO ""rawou. of eleclricity to mee1

the utility " growt" I'f"jection. ond 10 ~pl oce the 97 megawans of power it rueiv« from !he C<x>por Nuclear Slalion that;. ochcduled to c~ in 2003. ",. utHily' , share of!be

"""L i, uLimaLed It> bo $ IS7 miniOll.

By June 1996. only lhe 1l1Ie'1 Power Review Board

P-.ulll'lll ~ 345KV Tranami .. lon ROIne

tt.d "I'I'"'vcd .... I. lheproject. ____ _

Approval WN p<ndin , with the utilily'~ boanIlnd Iho Lincoln City Council. 10 June. the l alan plll1JleTShip ano""need lhe project would not begi n gencrati"o until 2004. a thr.e_y ... delay.

• Acc"rdin g U) Lhc Ulility D.I. Inotitute . Lincoln Elcclric System" Lar.unic Ri vor Station in Wyoming had the low .... cos .. p<r ncl mOilaw.n_hQur of electricity in 1990-I!i\I4. More than 700 "earn IIld electric powe, Slal;"nl w= included in Ihc ",~y. This Will !be Ie.,,)"" timc!be Wyuminl phlnl hod ""hicved !be booor.

• Two rural eleclricJ. Wayne Couney P\lblil: Po ...... Discric:I IIn<l Nonloc:asI Nc~. Rural Public I'<>vm" Di<lri<1.. conlin....! 10 upiote mer~' option<.

• An Icllcd power planl lhal "'IS sIaied for ... mo/illOll is undot COIIJidenlioo by Ncbrasb Public Power 0iarricI .... coal plam for eastern Nd ... <.ta. Re-aaruox the Knlmer planl nc .. BdJc.1Jc ... 2< 0l1Idicd emiic:r, ..... 1 aoxordlll, 10 !be utiliI)', a ntullbC'. or f""len ilave cbanged and • newanalY";1 i. w_ted.

• New heads fur lwo o( the lwe·.1Op el«lric: enlities WilUlUII Mayt.... or Nebrasb Public i'<lW{:r DiWic. and L1rry M""IW' of NM!>P Enerjy. were rwned.

Nuclear Power and Nuclear Waste

State Production and Consumption Nude.r lIonorOle<l electricity in the OIaie in 199~ ,eversed • 1W00year decline,

incn: •• in, 10 7'}.9 trillion Briti." thermal units. Only 61 ,8 trillion BtitWt thenna! Wli ..

wen: l'fOdt>\'ed from """Ie .. pcwer in t 994 <lLIe ." the ...... intled "",u.down of Nebrasu Pu!:>li. Power Di,.,icl', Cooper ... Iiort nc .. Brownville. 1'lIe r .. ilily .huldc> ..... in May 1993. but did not ~ ... _ full pcwe' unlil ~bn>ary 1m.

Nebra&UfIS paM! $52 miUlOJl ill I99S for the ouel ... II"neraICd dmrici.y II5ed in ,~ ....... up from W4 million in 1994_

Nebraskans who receive e""'mcily from Cooper ohould expect 10 pay more for \be pow<1' ....... ,n .... paOI. Duri", the ~viewofthe r.dUly by the Nl,dear IkgulawrJ Commiuion. the SUIiOll ·. opottiOC n:alittd the f""i lity', ' laffin, level needed 10 be ift<noscd.

Only 13.5 pon;ene of . 11 .... ,gy used in the .. ale in 199~ can~ (rom nu.cka.r po .... er. an increa~ of more than Olie pe=nt from 1994,

ANNUAL R EPORT 1996

"

In comparison. an . ,.. imillCd llJ..19 per«nl of all d octridly tIScd in the worid

10 1995 CarM from """ ..... powcr, oboul the .......... I~ prcviou, ye • .

National Trends While the UniLed Siale. hal the grcate<!

nuelo .. copacilY in !be world. fu ture capadly i, • • peelod IU increase onl)' three p<rcem in lhe l\C~t ,x,,!tdc . By 201 Il, Am.,ic,, ·, nllC lur eapao ity will docli ... (rum 99lil~W.tll 10 about 93 gigawatlS .. C>Jdo, uni .. we ... "",i .... ted, A Ili!awan il one milliOll tilowlII ....

",. "1IC1ea< power illduouy .... . tlI1cd in Anterica bocawoc <>f ,!we factors: hiJb opentin, and ( (Mll.lJUCIiort ...... ~Iative 10 other fuel JOUtu5 and IIM<lIved .... Icar _'" diipCAl . No ... w nude,.. power plan .. are planned.

In 1995. the ootlOi .. , cha.irman of !he NIICIe .. Ro,ul.""Y CommilSion ."g~Sted 111111 lhe nude ..- ;n<l .. "T)' c,,,,ld ",bound on ly if lhe in"el ,urrounding "OO'lIJ!e ohponl nuclear (uol we", "' ..... ,cd. Dutinll the ,eponioll p<riod.!be Conuniu;O<I lppnlvod ,,>Ie. allowing opor3linl n ... lear facilities 10 contintIC for 20 more ye." If\oT their 4o.ycar oporaIin.li~cnse bod CIpin:d.

Other hiShlighu .... rin' lhc period:

• 10 1996. ibe rllSt of f ..... W&lbingtan P\lbI~ Power S)'$km m ... 1ear plaolS 10 be di . ...... llcd .... ilhoou produei",

any clec:lricily will b<:,;". Coftllr'UCUOO Oft m. plants WIS hailed in 19K3 ... hen C""" soared ond the u.ilitY·1 rale$ tripled.

• Si"",,!he nati,,,, ', fi"'l nucle .. rea.;IOO' Will built in 1942. !he federal " "emment hi. <penl 530 bil1iOl\ 0<1

n""k:., "".arch aceordinl: 10 CO<IgI'U,ionat "",,,,co. Ho wever, II>< f .... ral rrowm .... n •• in recenl years. .... <lramMicaily reduced fuodin, of Illtuc projeo;1J.

• Some IUgge>l ,he b te>l chall ... ge 10 nllCk .. power ..... y COme from "'",platioo or !be eIco:tric illdll5lC)'. Since nllCle. pow<1' i. the m_ uptn,.;,e fom> of eloctricily. nile

"' .... he1ween compt1inll po"'er providers ~ould cau", the pttmature

do,ing of plan", especially in are .. with high electric rates,

• One of \he best hopes fOf a new generation of nuclear reactors collapsed in early 1996, when Japan's fm;t f .. t-b,eeder reactor was shUtdoWll becau .. of a dangerow; coolant leak, Optimi>tic official.

expected a th'¢e-year delay in ",starling the r",",lOT, Fast-breede, ",,,,,tors produce more fuel than they consume,

Japan "'" already spent three decade, developing \he fast-breeder ",aclt" and had expected to ""g;n commercialization in 2030, Japan is the only nation still developing lhis Iype of nuclear plant 'y<{em,

A routine oulage in 1993 devel<:>ped inlo a prolonged oulage and management shakeup at Nebraska Pubtic Power Di.trict' , Cooper Station, When operaling, Cooper produc .. about one-Ihird of lhe ulilily'. electrical generation and up to one-third of Lincoln', c!ectrical supply. 1be p lant resumed full operation in t995.

In Marcil 199(i , the Nuclear Regulalory Commission annooneed that " "e ral minor , 'jolations occurred at the Cooper plant in February , TIle nuclear ayncy fined lhe utilily $50,{((I for those violalions. Eartier ,'iulations at the plant lotaled $700,000.

• In May, 1 ')96, lhe Nock..- RcSUlatory Commission announced Ihat et!'OIS in refueling procedure. occurring at • Connecticut nuclear plant were happening at 14 .. imilar plants including "'" C<~>f>Cr f;><;i lily in Nebrasl •. While lhe utilitie. consider tho refueling praclice 10 be COOlmon and <afe, the utiliti .. agreed 10 an.lyre the proceduw;. 1be practice involve. storing all, not ,ome , of "'" n""lea, fuel a,semblie. in spent fuel pools. Normally, only one-Ihird of lhe fuc l a,sembli •• are replaced during refueling.

Nuclear Waste TIle m.jority of nudear w .. te in "'" stale is produced by lhe Iwo nuclear p'Jwer

stalion • . Fo, "oray pUl"J'O<e', radioaclive malcriol i. cl .. , ified as high_ or 10w-IO\'el w .. te depending on "'" length of time lhe ",asto remain. radioactive.

Nebraska Nuclear Facilities

Nebraska Nuc lear Power Planlloc:allona by County,

High-le"el waste is .penl nuclear fue l and has primari ly been ,loud on . ite at the nuclear power plants awaiting construcliOTl of

a temporary or permanenl "po,itory . Fort Calhoun has .ronge capacity until 2007. TIle Cooper stati"" expects lu «haust on·

site storage by 2002.

1be >tale h .. Iwo n""lear POWeT gener;t!ing facilili .. - Fort Calhoun Nuclear Sl:ttion '>peTated by Omaha Public Power Di.tricI and Cooper Nuclear Station near Brownville Of>OTalcd by Nebraska Public Power District. Fort Call1oun i. OI1e of the older commercial nuclear faci lities still operating in the nation.

State Trends

""

Permanent High-Level Waste 1be Nucka, W~'u Policy .... ct. passed by Congress

in 1982. sel forth "'" "<>raJ!e oplion. for tre raJio"c1ivc "'IlSte:

• Defen", Depanmenl radioactive ","'Ie ",,,uld generally be «gT"gated from commercia! radioactive waste and stored at lhe Wa-tc bul.li()1l Pilot Plaot.

• A permanenl storage faci lily would become"'" fi nal rCp<"il"f)' for 'pent nudear fuel from commercial reactors, By 1998, the U.S. Dopanmen, of Energy w", ,upP',scd 10 ""rt picking up the waste from nuclear reactors and move il W "'" permanenl . iIO, In 1981, Congrc" selected Yucca Mmmta.in, Nevad<! . • s the m05t ~uly site, if foond suitable, for 'penl nuclear fuol from llIe nation' s 109 reaclOll!.

No new nuclear f""i lil;e< arc planned for oonstruction by utiUti., in lhe state due 10 cosl inefficienc;",

and unsolved swrage issues for low- and

__ ' ''''''''01'Il00

• If needed, a temporary radi""clive wa.,le ,Iorage faci lity, called monitored retrievable storage, would be located at an undelermined si te.

high. level ",a<{e

High lights during Ih< repOrting period; • In the fall of 1995, the Nuclear

Reg-ulalO<)' Commi"ion, in a s)'''ematic assessmenl of the Cooper Nuclear Station, .. id tha t

performance at "'" stati"" had improved since .. staninl!, but that mo.-e improvemenl was needed in maintenance and engineering.

To finance tho Yucca Mounlain .ite, ulilitie; wilh n uc lear gencrat= baye been paying one-tenth of a oent per kilowatt_hoot prod""ed by the ",aclor;. A, of mid- I996. more than $140 mimon ha. been paid by Nebmsbns inlo the nuclear ",",Ie fund.

Waste Isolation Pilot Plant The furthe .. de¥c1oped faci lity, the Waste Isolation Pil'" Plant, w .. begun in 1983

near Carl,bad, New Mexico. Designed to store radioaclive wa.tes re, ulti ng from the prod""lion of nuclear weapo", it i, .Iso a test of lhe me of prehistoric .ail beds 10 enlomb raJio,",tive w ... lo. Thi. w .. te wi ll remai n deadly for 24O,{((I ye.".,

ISSUES AND TRENDS

"

'The $1 bil~on storage plant has been plagued by technical. kgal and rolitical probl.ms and may never become fully operational, This ,torn.gc opIi"" foo- defense waste remain, questionable despite costs of $14 million a month.

Yucca Mountain Since the selection of Yuooa Mountain. the f.deral en.rgy agency has faced both

tcchnical problems and local "I'I"'$iti<",. While site te.ting continue" the revi,ed operational date of 2010 may again be postponed. More than $ 1,8 billion bas been 'pent to date evaluating th.e proposed site.

Sine<: 1995. both bouse, of Congre .. have allempled \0 make th.e selection of Yucca Moont.i n permanent. However. !be opposition by Ne\'ada. as welt a. 0Ihcn;, h"" prevented Ihis from ha[>pening. In 19%. th.e Hou .. al.o con'idered ooilding a 1Omporary >lo<age si10 at Yucca Mountain. A. before, lbe two bouse, of Cong .... could nO! reco""ile differe"" .. on lhe iss"". As m"", .nd more nuclear plaDl' exhau't on-,ite Morage. th.e iss"" of lemporary 'torage will become one of greater c""cem.

Tn July 1994, the U.S, Departmenl of Energy was challenge<! in twO se"""", law.uill; to provide. 'Iorag. ,ile by 1998. Ihe original operali"nol date for permanent .torage. Fou~n in" eslor ulilities filed ""e law,uil. and 27 public agcncies filed the s. mnd legal action. Nobr .. " joined the puhlic agency lawsuil "" behalf of the stale', ralepa)'ers who had contribuled 10 lhe construction fund for the storage facility. During !be reporting period. the Court declared that lhe U.S. Departmenl of Energy must hegin accepti ng w •• te in 1998. How the federal agency wiU accomplish lhis is unknown al this time.

Proposed Nuclear High- and LowLevel Wule Slorsge snas In Ihe U.S.

Monitored Retrievable Storage

Tempo",,), ,I""age of .pent nuclear f",,1 was also listed as a pos,ibilily in

!be 1982 low if a

pelmanent facilily was not

operational by 1998. According"' the

i~:':3;c~j Edison Electric Institule, an e>timated 35 nuclear

planl' will e.hausl lheir on-site storage of radioacti.e wasle by

2007 . including the two planls in Nebn'''h.

AClion during lhe reporting period on this \yJ>e of Slora,ge focused on 001 one. but three slora,ge opIi""" • lrovemm.nt-operaled facility, a private one operaled by utili lie. and ""ti,m, heing taken individuolly by ulilitie, that have exhau,ted on·.ite .torage option,.

Two Native American tribes. the Mescalero Apad"" in New Mexico and the Skull Valley Band of GoslMe, in Utah have sbown the mo>l inle"'1 in de.eloring temporary Slorage of nuclear w .. tes that i. governmenl'operaled, Acccording to lbe nation', nuclear waste negotiator ...... "m.nl' of Iwo possible si"" al the Gu,hute Wiervation lIT< hei ng conducted. llle Mescalero Apache. have shown grealer intere't in de.eloping a printe 'torage facility.

ANNU"'~ REPORT 1996 28

According 10 the Nudear Regulatory Commission. fi,', cumntiy operating nucl.ar plant> are ' toring waste oull;ide the pl.nt in temporary. c""crete faciliti .. and applicalion< fnr ,imilar 'Iorage uni13 are pending from .ix morc plants.

Transporting Nuclear Waste Whether high.level w .. te i. civilian or

military. il must be mmcd fmm whe .. it was produced to temporary or perm"""nl storage ,iles. Because many nude .... f""iliti .. are east of N.bra,ka and lik.ly slorag. arca, aTe ...-eM of the state. rail line. and highways in NelmL,k. an: probable corridors for ,hipment> of radioacti-. waste. One nuck.r group estimaled that 15.000 truck or rail ""ipmcn" w<>uld he needed oYer the next 30 years 10 move the wask from generators to stora,ge sites. As many "-' 12.000 of thooe shipmen13 could pa" through Nebraska. Acconling k) the Nebraska State Patrol. currently onl)' OIle onwo ,hipmenl,. month passes tbrOllgh the ,tate,

Permanent Low-Level Waste Storage

Nebra.ka 1>o""'g' to one of nine regi""al or ,Iale COI"pacts in lhe nali,,,, fom>ed to de>'.lop storage facilitie, for low· level ",dioactive w.ste, Low-level wasle is ge""rally composed of dothing. filte~. n:.in" tool. and olher ilem. from nuclear poWeT planl. and ho'pital • . According 10 th.e U ,S, Departmenl o f EneTgy, ulilili .. generate more than SO percenl of the low· level W"'te. In Nebraska, il is e<limaled that utilities generale '10 ]>Creenl of the low·l.v.1 w .. te. Low-l.v.l wa,te remains radi"",,!i, .. fo< 90 day. \0 200 ye .... """ording In experts.

Boyd County Radioactive Waste Storage Facility and Related Issues

Sine<: Boyd County, Nebraska. was selected in I ~~~ by il' rcgionol compact, the C.ntrollnle"I.le Low-uvel Rodi"""li,'e Wa,le Comm i."ion, and the

dcvtl.,.,er, u.s. EcoloiY. the building of . ]ow.!evtl ndioactive _10 r.dlily ha$

~ alOl'lS " pRdetennined aumbtt of>l"8os. The fllCilny ;._ wimlled 10 COM S l ~ 1 million. more than five times , .... originAl . , rimAte of $ 30 miUion. The focilily, if bui ll, ;, e .Jl«:tc<\ to be opef"lliorW in 19911. As of Docembet 199$. SSO million had been ~nt Oft oiling and licensing i~. [n 199$. the .LlIC

ulimalCd WIthe lIorog<: CC>Stt lit Ihc: Boyd County faci lity would o...,rage S,~ • cubic rOO(, S230m~ H ubic fOOlllu>n lhe lllililie.< ~ now paying_

Unlil a n:p,.w fllCilily is openllional. the ' .... N.tn.t. lIIiti!; .. slOn _Ie On .ile ... >end !lie "'.10 10 • facil ity in Bam",-eIJ. Soulh Carolina. The South Carolina facility 101" briefly dDt«! in 1995. but rn>pcnod in mid- l9% and ;1 upectcd to ",main opeD for oe"". or e igtM y ....

In November lWS, the CenlTal

Interstate Compacl l$ked the , ' o'e 10 red""" the amount of time o.lJow«i for

public be.nop On the """"""" , iI<: , IhlU ",vinl S6 million. 1be sQIc IOd odltr members of !he Compao:l """tinuood 10

disalll'eC "" the schedule for tho license ",vje", \hr()lJghoul the "'porting pc1iod.

1be stale', o.:panmeD{ of F.nvi""'mefl1al Q\Illily h .. indicllWlhai ilO final re,;"w of the OWlicali"" to build • l ite in Boyd COOl"!), !boold ~ curnpkted by February 1998.

Other Highlights • 19% btooghl lhe lend! an"i"elUl)' of

Ihe lIUClur aa;idenl '" O>ernobyl in Ihe Ukraine. I'iflylOm of <-'i...:ti"" maleri ...... spread by the winds acroo, R""ia. mno;nc: and BeIOl\lS. TOOay. 25 percenl o r Bdam. · land i. uninhabitable. The Ukrain<: hal

",reed 10 eloole Ihe remaini.o.g nuclear planu I I OIetnobyl IIII<kr unain rondilions .

• The nal;"" ·, rtf$l proce .. inl p lanl for nuclear woste genc:raled rrorn Ihe producTi"" of bombs opelled in Aiken. South CAroIi .... in 1996. The S2 bilU"" planl will process

"'lSte encased I.... It is .. peeted !he 35 million gallon. or ", .. 1.1: ",ill lake morc llan 30 years to proceu. Initiall y. !he 1081 .... ill be «<neI oa'lile in !>outh Caroli ..... b.n ~ dcstiJled 10 be Slored at .... pcrmalltn' n..,le. reposilaty.

Natural Gas

Stale Production and Consumption Aller pcaiting in 1913 11 more than no m liiaD Britisb IhcnnaJ ""ils, NdJfN.·s

IWIIraIIU COII'lumpUoa hal plUlIIID<ted by nearly half 10 134. 1 milia .. Brilish lhenna! wUl$ in 1995. The 7.3 pen;ent rise in " "ural , u use over 1994 wu due primarily I()

wuthtr. NOIurol ll"" c , penditures in Ihe stale IOlaled mure lh.n SS07 million in 1995. still

bolow lhe peak of $567 min ion in. 1984. ltId lUI increase o f 1.4 JIOn:c:nl from 1994. A small amounl of n",ural po il mined in Ihe slalC _ leu than lwo pattnl "r Ih'"

...cd in 1 year. A pmcIuoction....-ge tlw bop" in 1993. peaked In 1994 and declined in 11195 . NOIur.tf~ .. prodoxUoo. I"'aled 2.2 billion cubic r.,,:! in 1995. I decline of 24.2 pcreenl from UK "".,.ly 2.9 billion cubic feel produced in 1994.

n.. all ·lime producuon lo w in Nebra.h WI$ in 199 1 when 784 mil~on cubic feel were mine4. Ailihe .tat~'J production il <'<Inlined lo five .""n!i.e. in UK Parlhandk;u sho ..... in (".,we 21. MQlc thaa ~1WW"1 or all narural ,V productioll in 1995 """'" fromOtey.""" CouMy. Wi!houl any Dew ... 11lI":I0I P' field d;,co....ri~ Ihe .... te'l prndoxlion 1.,·.1, should If/Id .... ly dec~ne ov<:, timt. Given lho..,]lnJSJlttII. nurly 100 pcreenl of UK .... "' .• nalural p. needs in 1M furure will come from imporu.

National Trends Two 1IaIW"lli p" ""ncb. ' q>nned in previotas 1I......al IUpOrII, cantin....!: the

..,..,1Id,,,, impacts of iftduwy deRgulMion ... faul. of Fc<kraI EnerIY R.,ulalOl)' Commis..ian 0rtIcr 6J6 and oonooIidation oflho: indu:stry .t all level •.

Orde1636 fundame . ... lly clwIgcd lhe • • IU .... I , .. utilily indullry. Secutina supplie. of • • lu .... 1 S"" Ilccame !he ~spon' ibili(y of Iot:al"@tiu. with pipc lines revorting ~) • commoro carrier .tatll<. l1>e Orr""l oflhe "unhundli n~" of ... rvices forced utililln to deal wid! e.-et)" Ie, of lhe flOt l ' , Invel, from _ 1I·head to lhe c ..... """'r'. door. In !he pas~ utilities ",1;"';[ on • re,ulaled ","!em 10 ruarantte "" adcquale supply for tltcir

N. br .. kIt N"lu .. 1 G • • Production by County, 199'

~Iive "1Id'C;"'~:""~~':~~.: _________ ~~~~~~~~~~~~~~~~~~~=====: alld combine ;1 "'i~ gla!s 10 ""lduce

ISSU ES AND T IIEND$

"

<"IISlOO1CfS. Wi. !he re," 111Ofy w ei)' ... IS >tripped OWly. ulililia must """,hue !be ri . ... amounl or P' (0,. !he rigll' CUSI"......., n.. ... W '}'I!tem willll$o c_ a <hili in

COW loCCORlinll 10 !he W"II SIr", /".m'oJ. Indi.;dual homeow...., IIId small bu$i .... oes will pay 1nOre . ... 1U1e bill indw:trial ~ ";11 be abk ((I ncg<lliate for 10"", •• """,

In !he .pring at 19%. KN Energy . .... h;.,h pro .. ;'l", ",1Ii1 noulnll 'I$"'rvice 10 the ... 'utem two-third. of lhe .we. be!"" providin, small .. 'Ii II~ web 1$ homeow ... rs in Wyomin,l cho;ce of , ... uppli ..... TIle UliUl)' indicated Ihol it moy he,;n offerinll , imi larchoiec. to ~ Nebraskan. in late 1996 or 1997.

State Trends TIle romif"'lli"". of Federal Ene'gy Rcgulolory Commission Order 636 continued ((I

reSOlli!te Ihrouihool lhe stat •. primarily f<JIlarllOT M lural ,N u",rs. TIle .we·, w/!e" users o f nlllural 81$ have .Iw.y, ""en able «) lC<:ure Ihe ,as .hey !IUd Hom source. oIh<r Ihon locll provid ....

Now. CII>'omcr groups 'lOCh. mOil.I •• rntaur.III1' or schools are lindin/! ttw by "';ng olllird party 10 ICC"", natural ... SUflplics.!hey can $IVe from fi~ 10 17 pttttnt on Ihcir natuni,l$ bill • . For the r ..... lime. Ibcse...wlet commcrrlal opcr .. i"", *"'.....,..., !be be ... lill' .... prcviow.ly only I""", 1Inns coold real, .... E~n • number o f ...wier c ilies - Aubwn, Flitbury and Wahoo _ have become a

Me"""", .. II'UUfIM capable of ouwlyin, "",rural , .. 10 lar .... u..,~ within their jurisdiaion., Thi, fonn of ..,tvitt i. called ".,,,,,,Won."

'The meric-rlreM alw '. ,<>I ,od I natural,", uli lity providin, 5«'{ice .0 N.bra,Un •. Ulil~. doln, busine .... People. Natural G .. Company. ~1!CmplCd 10 "",!uire Kan,as Cily !'ower ""d Liihl Company, However. the merger wlS foiled by a rival. Western Resoun:tS,

Other Highlights

Petroleum

Slate Production and Consumption

Oil prod\l<tiOll in 1995 in .... <Ute

dropped for lhe .i"h con_ulive year. TIle 3,79 millJ"., barre li pumped repU •• nt.d I ten pereenl drop from 11194 and a Mw modern·day low, Ba<od ()n. 1 !I9~ pt"'. of S 17.23 pet harrel, ..... aJ oc of 'he $I~,.'I oi l production in 1995 was S6S.3 millioo, The val"" ...... 12.1 pe"",m in 1995 bee.us< at . 2 L I pem:nl ;"""'_ in the price ofa barrel at oiL Fi ....... 22 i11"!IIaIe$ thutatc'soi1 prodllClion IUSoIOI')" .i..,., 1939_

llIe 11$1 "me oil prod\l<tim WI$ thit ...... . 1952, the .wc·, fi .. toil "'~U .... .. juOl • 1~IIII~r. Only 1.800 bam:1 ... 'en:

pumpc.t in 1939. lhe yeu of .... fU>f oil Slrikc in the "ale, By 1952. producli"" bad ri sen '0 2.68 million barrel, . No"e of the oi l miow in the stale hl$ been relined

• 11«"". public o ..... ~i-p or utililie • ••• cry Oommon in 1he $lale. it i. nOlI uousual for K,~raI ,owns. year \0 eoA<ider municipal'E.IOIion of

Cruo. 011 Production. Nebraska, 1939-1995

,,' il ....... 1hc ' ow,," 1 .... ~"'~ , ... ' .aoibilll)' of rn"niclpo.iiwiorl or ""'I ...... gas ...";c,, duri"l 1M ..,portin. period ... ~"': AUburn. Brotca Bow. Cme. o..id ei' y. Fairbury. Pi lU>lrlOUth aM. Wahoo.

• In January ... d February I9%. ........ w'n!te ...... thor across 1M ,tale forced narucaI , ... , "ppli ... \0 ellrtail ... vice.1O 1-101 industrial customen;. ulili..., peak Uta,inll facilitiel'l'I<I u,ge . 1I cuSlO<lJOfS «) mJuce UK.

• If "Olura l ill5 pricu parallel oil price •• Nebraskan. may be in ("" a period of "Olural g .. price ,·olati] ity. For nample. in De<:ember lW~ . nalur.tl g • • 'l<W'<d.o 1 .... 1, not seen ,ince 1993. And bc<:au.., winler 199~ was signi (,el nlly coldr:T lhan """",,I in much of America. gas prieta did "OI telrtll<h in .... ",mmer as they nonnally do. 1.0 ... in ... ntories and wikl !tempe'"'''''' ,W,,,,, duoIogJ>oln the nation up! <Ie-mand ror 0",,, •• 1 ... II hi ...... tIwo nonnaIle>ds. eaaccm.tilll !he .,.n voIatilily.

A NNUAL REPORT 1996

"

" . . : _ <II __ ""'--0..--"It.f'lo,!,,,, '., j; :!

••

Nebra$ka C rude O il Produ ctio n b y County, 1995 demand sel in 1994, to about 47 Pffl'enl in 1~5, While oil prootICli"" in lbe nali"" conlinue, the long decline begun in 1954, il has general ly 'tabilized, Thi, 'Iabilization , in part, h .. , come from the Technological advance, now being =d in <>Ider fields and i. addre"ed in greater deTail in "Othor Highlighl' ."

in Nebraska .ince the la" refinery cI<>SCd in the 1980..

Oil i. prod..ced in ""Iy 170fthe,(at.' , 93 counlies .nd two coonlie', HilChl:ock ond Kimball. pnxluced nearly

Barrel$ 01 Crude Oil Glj l1olO,HO

II too.ooolO~ooo 1m ~001 10 500,000

• 500,001101.000.000

• IIonITIIonl.ooo.ooo

In facT, the cOMen'ation Zains made in the 1910. thai reduced the nation', ",lianee "" imponed oil from 45 10 32 percent by 1985 have been wiped OUI by the ",Iurn 10 con.umptive e""'gy habit>

n.e Interstate Oil and Gas Comp""t Commi,;si,,., . which Ncb, .. ka', Governor Nelson headed in 1996, rclcawd a , Ialu' rCl'on on the nation'. stripper weU" Stripper wdl. produce fewe, than ten barrel, of oil a day, Eighteen perce nT of oil prodocti"" in the c""linen\ll.1 U.S, in 1995 came from stripper weU" The dedi"" in prodn<lion fmm

stripper well. i, primarily due to wen abandonment, Gt""raJly, when the co,\ of production exceed,

the value of thoe oil, thoe well i. capped and the resource i.lo,1.

In 1994, thoAmerkan Petroleum In.titute prediCTed that oil import, would rise between eight and nino pcrcenl annually, oil con.umpli"" would gradually increase and rn>me<1ic production would decline not-so-gradually,

Other C<juatiy 'obering Irend, are al.o appearing;

Ii.lf of all the oil pumped in 1995, Figu,.. 23 indicates the oil-producing countie, in

TotI1 1995 Crude Oil Production 3,793,883 Barrels • In March 1996, petroleum product

invenloric< had ruched their lowe.t

Nd,,-a,h. It appears that e".n the use of advanoed

oil recovery technology, whoe,.. pr""ticaJ, will nol revo ... the .<Iate' , oil producti"" decline.

An e'timated 38,3 million barrel, of oi l wcre consumed in the ,tate in 1995, down 2,3 perc.nt from the year before. lc" than Ten percenl of the oil u,ed was proo..ced in the ,tato, A,. fe,ull, mo,.. and more of the 'lat." pelroleum ,..ed, are being met by other ,tate, and countrie,.

National Trends 11>c ' Iato', oil dOI"'n<ienee is

increa,ingly being paralleltd by lhe nation, According to the Enorgy Informati,m Adm ini.traTion, oil impoI1' into the United State. declined from the all-time record of 50.4 percent of dome'lic

point .ince 1973 and were down w a M . da}' .upply. Low product inventori •• can lead [0 very drlllIlalic price ,wing<'" evidenced in 1995 and 1996.

One of the bigge't cause, of price volatilily i, • chang. in proouction methods by IhI: nation' , refi,..~, MOM refiners an: u,ing a "ju't-in-time" produclion Slmtcgy to maximize profits and avoid 10';",,'. With Illi, appro""h, crude refined product inventorie, are kept very low, Under Ihi . al'l'roach, any produclion or intomationa! incidonl 'lr change in the weather can cau,e rapid price run-up" For «ample , the protracted Iraqi oil upon negotialion. cau""d price 'pike, throughout the year,

• 11>c introduction of ,..formulated gasoline for u"" in lhe nation' , ni,.. , moggie.t citio. as w. n., ocher regi"", That cbose to us.e the fuel voluntarily, caused g»o!i"" to rise to $ 1,21 a gallon in 1uly 1995, a ten·year high, More aboot price, can be f""nd in the Annual Repon" ''Top Story."

• Exec" ,,,- idle capacilY that could be operational within 90 day, declined by 1.6 million barrel. a day to ju,t 3.4 million barrel. belwoen 1990 and 1996, Virtually .11 exec"" capacily i, located in Po",ian Gulf· producinjl countrie.,

• 'Throughout thoe ,..porting period . Amorica and the Unittd Nation, con,inued negotialing with Ir"G regarding allowing thaT nati"" to ,...ume exporting oil, Bdurc the Fe",i"" Gul f w..-, 1""'1 .,.,nually pumped h.lf. mil~on barnl. of oil daily.

• While U,S, depend.nce on imponed oil i. iocrca.,ing, more of the oil i, coming fmm non· P .... i.n Gulf countries .uch as Venezuela and M.xico than during the oil price ,",,,,k of lhe 1970.. However, the world', dependence"" Persian Gulf oil is increa,ing, from n to 40 pereenl in the 1 .. 1 .ix }'e .....

ISSUES AND T RENDS

"

• One IroUbIeJome Upeel of the C(lnlin\lfd inc~ase in oil imporu i. ",Iw. the cMI of thoI;c import> <IIJq 10 1M llAlioo', balance of II1Ide. Increasi ngly , as 1hc ~0Sl of a ~I of oil has ri_, IS m\ICb as half of the nltion', 1nlde balance i. 1Wri\:luubie 10 ~ oil. 0.. • ...mined basi" !hi, C(lIIIillUtd 1rIdc bemorrbage .....x:nnil>CO 1hc !Wion 's WlIIOIIIic proJpCrily.

• Some oil eapens had pm:iic:1tId _ illCfUlina p oouctioo by noo-OrganizaDoD of Paroleum Exportin, COUIIoles such u Nooway wOllld ...-vc 10 k«t> cn..ock oil prica low. Hn_Vtl,_ ",un 'l the case d..n11l the rcponin. period. In Uti), 1996. . barftl of We4I Teu, InlmnediueCNde oil IOld (or_oo S I8 I ~1. Oy Apri~ _ _ ....... 1 of oil ...... Ihlll (ot S2S.

• Despite ma>$ive U"anSfm of " ... allh hom the world' , developed n .. ioo. 10 oil· producillJ counlries in the Peni ... G ulr. I'" economies of Gulf· •• ~oo .... 1 .. _

i""",",in,ly unmbk. llIe nll _ let.l and infras1RlC1un: prouam' beg .... ;,,1hc

197(k ...,. in Il>me c ...... heeomin. u"",,wl\llb!e. "This insl.lbilily is also I.ading 10 <:eonomie !II .... in IOIIIC cooncrie$. For eQtJ\pl •• Saudis ha" e seen.lfl MnLlai 'O\"UIlI1"oe n. ,Ii""nd d .. indl. from S 14.000 a y.ar In jU>I $4.000. For the fll!ll tim •• W Saudi' ..... charp n, for ...... teruse . llIe sov.mmenlS t/vnughnut lhc ",ginn.,., « ",.i.lenlly .",,!KIin, more ilia. lhey.am from lhe sale of oil. y.ar in and ye .. out. To lhi, is added lhe de'Ulbi li1.inll elemenl o f ",ligiou. fundamenlal i,m IlIat pervade. tho Gulf "'Ilion and beyond.

• Ame. kan" in lhe foreseeable futllle. ll>!>ukl el"",,1 a U.S. military fore. to be ""rmanenlly .lalioncd in the Gulf rellion. By mid- I996. the minim um Ie""l uf American pel"$(Hlnel and mi liwy h.n1"'"re in 11>0 reBion tOlol.d 20.000 troop', 200 plo.ne.o , 1.'10 Ilok. and nlval.o.ir clITi.ts - a tOtal of.'lO 'hip •. CLIlTCnll y, 1lC1ITly one_firth _ m" ... Ih<ln $SO billiun _ o( IlH! nation ' $ def.nse budg.1 is .pent on def.nse of the Persian Gulf.

State Trends In addilion 10 the .'lIl1e·, prod1l<';,," ~.d cun<umpli.,... p.onem. identified e..,li« in this

_ Iioo. Nebraska .. 1$0 re .. dle(! .. low poinl in ne .... ""'U. drilled - onl)' 60 ne .. 1Iok> ... redrilledi.I99S .

Other Highlights • In 1995. Cong .... ~ theuport ol oil hom Alosb 10 f"", i,ft coun!ricJ;. A

prohibition "",the We of oil from PNdhor. Bay ..... been in eITa:l rot 22~. The U.S. Depamnenl of Entle e41;1NI1eS _ Allshn OOlUppIies about 25 pcn:enI of the 1IlIli00 '$ P<lrUleum .........

A portion of 1M law abo jHlesi&Md 10 dramalically en.oourage oil and po nplonMion in theGulf ofMulCO by thmiuting fcdcnil royally payments"" lhe fi .. 1 17,j million Of m<lU t..rnl, of oil. ~""iRl 00 the depth of the ....,n.

Despit. pm:Iic:lions of deelinin, produ<:lion from !he I'ruo1t!ox Ooy f",11b: in Alaska. employin, new IeChnoloU has fO«$lalled !bat decline IS "",II as increased the yie lds. I...u:od of ceuinll p oouctM,m shortly afie. lhe IUl1I of the ""nlllly. oil companies DO'" , UUUI Ihe r",lds mil)' be producu"" unlil 2030 and '"" 0IIdiIi0na1 8OOmillion ~b lie likoly 10 produeed becl.lI5C of lhe ..... lCCbnoiogy. Ihc equival.nl of I. ~ ....... rl"" w<:h IS Ihc one in the Nurth XI.

• For lhe fi r .. rimo:. Con' ...... u1horiud UplonlOOY oil and .. driUi ng in lbe Arctic National Wildlife flefu,," .s pin of III om";",,", fotlercal budi'" Hm ......... the f.deral budi.l li,ned by lhe l'Iuidenl did IlOl. incl ..... the drillih! aulhoriu.lion.

A ..... ~'Iimat. f,um Ihc U.S . G~<>Iop:.1 Su.vey tlalved the amount of oil suspected of being in Ihc Afelie Reful". In updatin •• , il-Ytal' ok! >tooy. 1M federal li.ncy Ulim.te lhe amoonl of oil as ranging f.om 148 million barrel. 10 S.l S billion barrel •. down from 697 million to 11.66 billion ....... 1 • .

ANNUAL R EPORT 1998

"

.... '1"0 dcpIe~ <.Iomelfie oil

"'_. 1'00 ........ , 'I'ouid II>ake hilI!: .,1\Ie 1ft ibe .....,. Q( ..

-sY cnm_ ,!t ..us nKre 1IO"",

fqr "-riellD C_ml "'-'Wr .... "" _ coM"'" biotin,_ "'1Ili~1)' Ioro".priced oil fiooI Ollie( ("""triea.~

.. _--. • Usinlll«hnoloiY 10 IITUI falling

prnducliOrl in I.he American oil fields continoed durinS I.he rq>MinS pe.kld. In"""" ca .... IOO-year oll fields such as Kttn Rivtr in CIIlif"",i •. 1I<)I.

only inc",.,.d daily ptOO\lClion by U. inll no .. ICChnnlosi ••. 001 hive been abl.,o increase <he lIIIOUnl of "il ol lnlCtod fn,m an .. ea. Typically , only about half tho oil i. exulIClod from In ""'4. Y.I. lhe$< new I.ohnolo.i •• ,ocll ... U. inll Mcam injcction differently, can rai5<\ recovory 'Olel In J!/l pcrccnl

• Increasingly. the Gulf Coasl of America i. heeomin,the aru of primary eaplonlO<)" .clivi ly . Technolopc:ll bn:al:1hrou&hs lin

all"""n, drilli"llll dct>Ih. previOll,l y mOll,hi impos,ible. creatin,lhe possibilily _ (iiI prnduction from the Gulf o f M.oti;o could swpw Ala. ka ', Prudhoe Day .

Si ....... h .. M..,.. 130 miles hom New Orlean$, htiv-e drilling pillforms WI .-e located in nearly 3.000 fee. or "'...". In r..,..1.he oil II the M .... rite is much. mIlCh deeper _ 14JOO fee. below lhe IUrillOe. In July 1996, Shc: 1I oil ... """need _ I n eve n deeper oil .. ·.Il ·_11 4.000 ftel would be,in proouc lion In ,he Gulf in 1999. loc:atin, deeper ood deeper oi l "",II fi .ldo;. i. lhe . .. ull " f odvlnce. in I.Jccommunioal;oni ~ ima,in, tcchnolollie, s""h as satellile •. I Upe. compule" . nd fiber <>p!ic communk ations cable •.

• In e.,-ly 1996. an estimated 20 million gallo,,. or oil ,pilled frum a tankT onto 120 mile, "f!he We1.\ch co .. tli"" in England. 11>0 oil .pill exceeded the 1989 Exxon Valdez oil spill in Al.,ka by nine million gallons. "The cleanup costs for the Welsh oil .pill were estimated at $96 million.

Alternate Energy Effo"., to de¥olop dean . abundont and

affordable alternale. to tbe use of fo<>il fuel' h.ve been aided by fiR foetors technological improvemena. increasingly .tringentenvimnmentallawo, f.de ..... 1 research funding. utility regulators ond brood-bosed public ,uppor!.

Because N.brasla i, a public po",.t state. utility regulator, are no! consid.,.ed a focto< in fostering the IfOwth of alternate '''''rgy form. in the .tate. The impoct of federal =arch budget cuts on alternate e""rgy by Congress will. Over time. re,ult in <lowing technologicat progress and reduction, in the cost of alteroate e""rgy.

"The five main oltema!e energy "",rce, - biomass. geo!bennol. hydropower, solar and wind - are detailed in thi. section.

State Production and Consumption

In t'l95. hy<impowCT .upplied an estimated 2.5 percent of tbe tOlol e""rgy cnn,umed in Nebr",l;a. Bioma .. , in the form of ethanol. supplied 0.3 pe",ent in 1'.i95. "The E""rgy Office estimate, that in 1'.i95 .• 11 five form, of alteroote e",,'iY , uppli.d appro,imately thr.. percent of tbe energy used.

While energy production from oIternate energy 'OllTCe. i, increasing. the incr • ...,' .... generaUy very sm.ll.

National Trends Accordini to tbe U.S . Deportment of

Energy in ilS lI.<newabl< Energy An""al. seven percent of the nation·s tOlal ef>Ctty

need, were mel by renewable energy "'''KlTCe' in t '.i94. the m""t recent year available.

Nearly half of the ",ven percent came from hydmeio,tric. followed by biorn." (45 percent). geOlberm.l (six percent) and ,olar and wind (ont pe",. n\ each). "The Rtp<Jr"I

nOled that among non-utility generat"'" of electricity , renewaMe, "",o .. ont f", 25 percent of the el.,tri,ity genemted. TIle R'lx>r"I found that wind energy grew the fas",.t OvOr the P"" t S year, due to the decline in production cosa from SO cent, per Idlowanh()llr in 1980 to five to «.on cenl>; per \;ilowatthour today. "The Rrporr also found thaI the future of renewable< in electricity production was lln,ertai n. due in great part to competition and d.regulation of the electric utility industry.

A national poll w ... conducted in 1996 on support fo< federat research of renewable technologie,. 1lIe poll found that 56 percent of the respondents wanted fe<leral energy re .. arch dollar. 'pent '''' or la' incentive, given for either renewable or energy efficiency technologie •. Research funding fo< fo .. it and ,,,her fueh _ natural g ... nuc!c.,. and oil - w", ,upported by only 10,9 ond 10 percent, respectively. 11>0 .. finding' compan:d ravo",bly to .imil.,- ,tudie< cood""led in 1994.

"The 1996 poll al,o explortd new are... Eighly_thr¢c pen:en\ of tho,e ,urveyed ,upponed tax breaks for renewabl.s and 72 percent either <lrongty 01" ."mewhat . upported continuilljl the tax exemption f'" etbanol fuel •.

State Trends A, indicaled abuve in '·State Consumption and Production. " alternate onergy

pwduclion and u .. h.ve remained f.irly constant over the years. de'pite the state', overall growth in energy con.umption.

S.¥md legi,lati¥e bill ..... ldng to odvance different type. of alternate energy - from wind to biolll8.>s - were off<red for con,ideration during lhe 1995 ",,,ion ofth. Unicomerol. None of the hill> were p"",ed by the ",narors.

"The O1.te·, two largest utiliti« are taking different approache, to the u"'" uf altem.te enerllY sources. Nebra,ka Public Pow.,. District, the state·. larg«t, i. u,ing ,ire' and the re.idue len fmm humed e"ol _ ,"li ed !ly a,h - to supplement rraditional fuels in generating electricity. "The ulility i, also participating in ",Iar and «veral wind generation ... IS. "The state·, secood largest utility. Omah. Public Power Di.trict. i, currently involved in ont of tbe wind generatioo .. OOie', bul ,ontinue, 10 moni" .. "'1l<w.bte dev.lopment, closely.

Fuel Source Types

Biomass While mo<l of the emph",i, on bioma" energy M>IlIT •.• ennlin"", to foc,", on fuel, of

the future - .witchgrass. ~enetically-engineered tree,. garb.ge and crop wa>le, -the reality i. that. in Nebraska. wood remains the primary altern.te biomass fuel in use toooy. f"Uowed by ,om u.ed for ethanol production.

Several Nebraska grouP' arc attempting to have the .talC·, uti lili", ",m""te up to 25 percent of their .lectricity from biomass sotll"C« by 2010.

In noothea't N.br.,h. ",veral group, contin"" to e.amine (he fea'ibi~ty of growing ,witchgras' to use a, feed<locl for an ethonol plant.

Geothermal Geothermat energy usc in Neb",,1;a remain. limited ") .mall_""at. 'y.,tem, ".ch .. ,

ground-source beat pump' u,ed in "hool,. bu,inesses and hom ...

Hydropower Hydropower in the ,tat. come, from two ,,,,,rce. -II hyJr<>olectric Jam, in ()r ()n the

border of the >late and power supplied to Nebra.'h by We."ern Atea Po,..er Administration. "The pow," administration transfers hydroelectric puwer prooll<ed in

ISSUES ANO T RENDS

"

_JImI SI.es 10 SUIte .,enc:ies, muni<:ipalitie. and public powu di.uio~ Tahn ",,,,,,,"r, all hydroelecuic 0<JUrCe> ",," m,,", lhan 14.4 IM'Ke'U of !he SUIte" electricity neaIs in 19!ilS. NlIloroally, about 9,8 percenl of!he coonUY'1 elecuicily neaIs are mel ..... ually dvougb hydropower,

AI this lime. il;s noc ."tic:ipaled dlat other IUUrces M.in. hydrockw"ic pountial win be <,Itv.l"","", in lho ..... , It il m"", likely that hydro reso\,I~n .... i!! decUne .... ith Ii""" For •• ample, reJOiution of !he ",licen,ing of Kingsley Olm may result ;ft a reduction in !he production of cle<:trici ly.

Other One or tho mon: ",!)tic ollernalC energy form. I<> . urfa<;:. in 1996 WI, "cr""""

te<hnolofr, Willi" f~w t ... im of" "crank." " ,.,;iio pl ayl for up ,n 30 minu,,,,. n.. South ",ric." company manufacturinllbo radio estimates l1li, SSOO-Sl ,000 from ballC1)' a.," will be: Javed "VeT Iho; no;!io',lln=-year lif.$p3II. n.. company pi .... 011 prod..:ina a "crank" DaUIlicb' !lUI.

Solar Sol .. or pholo""ltak enerD """'inued '" make .ianir"atI' lecllooloJical pi"" iD

1995-19!il6. rtod" cin8 yet apin the cosl of e:lectricil y from !hi. powe:r ""'ret:. In 1996.

''''''' Amffic-." solar panel prodl>Ct:tl expanded produetiOll (""ililies and five """" pbn .. on: ""hedo.1ed to t>e,in ope<atiOll in !he n .. , m..... yun.

By \hal lime •• koctriI:ily prod<=d from solar power i. e'pec1ed I<> COllI 12 cen" ]>Of

kilowan, Cu .... ntly 00511 are eMimated al18 cenl. a kilowa1\, down from $2 a Xilow.ll

in 1976. n.. worldwide mutet for solar is greal.r ouI.ide <!evelop«! <ounlric •. e'pecially

wll<", inf ..... lrUClure i, non-e.i'len" An .. timated OM-Ihird of tt>e world', population currently livu without ele<:lficity. lD 1995. w lar power "'<>I'ldwide ,",'" 18 porrent ond i. eApoclCd I<> Jrow annually hy 20 porren! Ihroullh 2000. occordina tD industry """""., lbc: Unittod SllItu prod"" .. ono-third of !be world', 101 .. polnel • . s"."..,inS .11 other cmm tries in sol .. cell p od""'i",,.

Solar Two .• len _,,"wan pi ..... in !he Californi. des<:n. bec ..... llJIOf'IIion .. in early 19%. Tt~ina tolar panel tecbnol"IY ... ·M 'torq:e .:onctpU. !he p lant is capable of prod..:i", poWCl' ..... n i" sllC<lded. no! ;.w w"'n !he ....... ,hi.;na. TIle federal ao"C""".tII ... \ecaic utilily .... periment is prod""i", electricilY for ten ...... a ItlJo..-'al1 and will ",," .. te .hrou,h 1999.

lbc: key 10 lIdv..,.;i., solar technology ",maillS mo~inH from • "",,·of·.·k ind ~"'ype to maN production. \Vhen 001 .. cell ..... mass prod..:ed. the c<><l of producti"" pl"",,,,,,I" F".. exampk. if the: l",hnol<1lY uiiC4 in It>e California I"" could be: malS prodllCed, ;t ha, been e,t;mated thol electricity from \hIo 101 ... cell. cou ld be m><i""cd f,~ 5,5 It) ~ cenl, pOT ki lowatt. includini one ce nt for m";ntenanc~. HOWe"~f. thi s is still above curre nt Ncbra.<ka ele<:lficily prodoclion COSIS. i>ul ",',lIlI<low Ihe n.liOl\ll averlie price of eiihl cen .. per blowa1\,

Cum:nl, c""l·effecl;" "50 of 001 .. "enle<:hnolOiY in NebrQu. i, primarily limited to \hIo powerina of el«trie fo....,. by cauk prud"" .....

One of lhe 'Ute', rural el«tric 'y ... m •. Wilealbe:!t in Sid ... y. is ...,.,tinuinK I" te ... ""l .. ·~ pump ror liYCSIock "",n •. RcmoIc •• par.ely ICUIed arus .... ,,·~soI .. powu cat< ~ <OfI ... ffectivc in loday', Ameri<:a. These Iypes of solar ""'IS would be f .. chcapo1' !han .ural electric:'l """"", aItcmau"" _ COt>SIf\II;Ii", a ...... povo-.. r line for $18,000 per milt, pi.., CIpCf1Ilioft and maintenance ct:Dts.

Wind AI of w.. I9!ilS. mOK than 5.000 witt<! lurbit>e dusto .. wtte ,enctaliftl ele<:tridly in

Iowa. l>1inne801 •. ~w York and Tnas. California. which leads tho nation with 15.000

ANNU,,"1. RI!POAT 1996 ,.

Imbi ... s, produces one perrelli of !he "e"tncuy ,I U$eO from wind.

Ia Netnska.lWO";1I(] ll""ie.

an!>Oll~ In 19!ill· l9!il4 ""nli~""" durin, thi. ",punin, prriod.

Earlie< II ..... ies by !be UniOll of Concerned Sdcnti5t, had e.timated thai wind ",,,,,,,,,,"" in ll>c: . l.te "'ere .ufficient to supply 120 time. lhe amounl of electricity cu .... nlly being used in Nebril!b _ ti>c: equiv.lent of sevcn

perrent of the el«lricity used in the naliOll.

lbc: filSl lllldy I, beiDa conducted roear AiftlWonh I>y Nchrub Public """''Of Districl. KBR Runi Pulllic Power Di<lrict and 8 . ....... Pac,fi, Nonhwest 1..abor8loty, pen of tho U.S. Oo:p..nm"'" of

Eoe'l)'. One of fi'~ srudic. in the ft3lion. Ain.worth"'l1 fOlectcd bec;wIC earlier IIl>dies found Iho; arta 10 ha", ,oad potential for wind iet>erolion io the ,ummet, ""lI<n lhe ' t"'e' , ele<:tricity t>ew is ,realesl and the .ite i, 11'0 located d """ ~) "" e.;'tinlllt.nlmi .. ion 'ystem - both imponanl filetor., Ncbra,ka Public Power District f"" nd tl>c: ... ulu from Ibo r "'1 18 monlhs of mOlliton"a SO promiJ.in~ thai additional tnotIil<>rinl .hu in the ""'" a:e beiJla inSlalletl, The: uli~ty Jw e.-c:n <IIfIed "", .. kin, wilh m.tlllfactu ...... to modify .. iltin~ wind ,urbine IIlCImoIoJY 00 W I it is more l uiuble for Midwest tetn.in. lbc: AiMwonh';~ ra:anl<tl an ", .. ra~ wind speed of I U miles ]>Of ....

n.. tet:ond, Md larger .t""y is being undert~ken by the Nebru~. Power Auoci",i"" anJ tl>c: IinerK}' om" •. n.. S300.QOO.plu l , three ye ... tudy first co""enlrOl,d on , ite. t>ear Imperial. Kimball. Ru.h.ill •. Springview, Stuart. Volentine, Wahoo and WinneNio. The ",,,,ttl from the lim ye .. of monitori", "I'I'<ar in fill .... 24. A..,.,.-di nl ' o ,he otudy """ ... 11""1' . I i, nf ,he .igM .i1uall but Rush.iI ... and Wahoo_ had """,ntAt for wind a .... rotiOll devclop",e.u. 1M .. udy i. "heduled In

.:onclll<k in 1998. OM cllltionW)' e,umple of the I>arri ....

I<> u1ina ",lnJ 10 lI"t>et"llC electricily

.urfaced at .legi,13tive hcaring in thc fall

of 1994. A California company told a Scottsbluff landownCT who hod been monit"ring wind ,peed, ",, hi, f..-m for a year that if he could find a buyer for up 10 70 megawatts of electricity .t4.5 cent,

per l<ilowattltour. the company would build. $75 million willd farm. Tv.'o power prmidcn the londowr><r contacted would only pay one cent per kilowatthour. the avoided cost of running the utility', Own pow« plants_ Under fedoralla ....

utilitie, buying power from "OIl.utility provide" do no! h.ve to pay more than av<:>ided costs,

I Wind Speed In Miles-per-Hour,

ISSUES AND T RENDS

"

Nebra~ka Energy Office 1200 N Street, Suite 110

Lincoln, NE

Annual Report - Nebraska Energy Office, 1996govdocs.nebraska.gov/epubs/E5700/A001-1996.pdf ·...

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