NEBRASKA POWER REVIEW BOARD
Minutes of the 846th Meeting
October 20, 2023
The 846th meeting of the Nebraska Power Review Board (Board or PRB) was held in the First Floor Hearing Room, Nebraska State Office Building, 301 Centennial Mall South, Lincoln, Nebraska. The roll was called and present were Chairman Reida, Ms. Gottschalk and Mr. Moen. Vice Chairman Hutchison previously notified the Board that he had a work conflict with this meeting and could not attend. Executive Director Texel stated that public notice for the meeting had been published in the Lincoln Journal Star newspaper on October 10, 2023. The Board also made the meeting available to the public through Webex. The Webex login information was available on the Board’s website and was published in the Lincoln Journal Star notice. The agenda on the Board’s website provided links to the agenda items with associated documents the Board will consider, as well as a link to the Nebraska Open Meetings Act. Executive Director Texel explained that if any member of the public watching the meeting on Webex wanted to speak, they could click on the “raise your hand” icon. At that time they would be unmuted, they could announce who is speaking, provide an address, and disclose if they represent an organization. Anyone wishing to comment on an item or ask a question could also type the comment or question in the “chat” function and the Board’s staff would read the question. All background materials for the agenda items to be acted on were provided to all Board members prior to the meeting and a copy of the materials was in each Board member’s meeting notebook. The executive director announced that a copy of the Nebraska Open Meetings Act was on display on the south wall of the room, and another copy was available in a black three-ring binder on the table in the back of the room. A copy of all materials that the Board would consider was available for public inspection on a file cabinet on the south wall near the back of the room, as well as extra copies of the agenda.
The Board first considered the draft minutes from its September 15, 2023, public meeting. The minutes had been sent electronically to the Board members. The staff did not have any recommended changes, and no one had contacted them with any requested changes. Ms. Gottschalk moved to approve the draft minutes. Mr. Moen seconded the motion. Voting on the motion: Chairman Reida – yes, Vice Chairman Hutchison – absent, Ms. Gottschalk – yes, and Mr. Moen – yes. The motion carried 3-0, with one absent and one vacancy.
The next agenda item was acceptance of the expense report for the month of September. In September there was $27,415.99 in personal services, $17,148.49 in operating expenses, and $3,551.29 in travel expenses. The total September expenses were $48,115.77. Mr. Moen asked if there should be concern that the percentage of the travel budget is already around 36%. Ms. Hallgren (the Board’s business manager) responded that there were some reimbursements from SPP that have not been received as of yet. Once those get credited back into the cash fund it will drop the percentage down. Mr. Moen moved to accept the September expense report. Ms. Gottschalk seconded the motion. Voting on the motion: Chairman Reida – yes, Vice Chairman Hutchison – absent, Ms. Gottschalk – yes, and Mr. Moen – yes. The motion carried 3-0, with one absent and one vacancy.
The next item on the agenda was the Polk County Rural Public Power District’s Petition for Charter Amendment 11. This petition is in response to the Board’s decision in the Central Nebraska Public Power and Irrigation District’s Petition for Charter Amendment 6. In that decision, the Board denied the petition because it did not include the language that a district cannot issue general obligation bonds, and the district’s current charter does not already contain such language. The language is req uired to be in all public power district charters, according to Nebraska Revised Statute section 70-604(5). During that proceeding it was discovered that Central Nebraska PP and ID, along with 14 other districts, did not have the required language in their charters. Polk Co. RPPD was one of those 14 districts. Polk Co. RPPD filed its Petition on August 16, 2023. Section 5 of the District’s current charter states “That the proposed district shall have no power of taxation and all property within said district shall be exempt from the levy of any taxes for the payment of any obligations of the district.” The Petition would add the language “nor the ability to issue general obligation bonds” following word “taxation” in charter section 5. The Petition would also update the list of directors in charter Section 6. The PRB is required to publish notice of a proposed charter amendment for three consecutive weeks in two local newspapers in the district’s territory. The notice was published in the Polk County News and the Central City Republican-Nonpareil newspapers on August 23, August 30 and September 7, 2023. The Board did not receive any protest or objection to the proposed changes. Nebraska Revised Statute section 70-663 allows the Board to approve the petition without a hearing if no protests or objections are filed. Executive Director Texel said that to approve the Petition, the Board needs to find that the charter amendment will not be contrary to the best interests of the district and will not jeopardize or impair the rights of creditors of the district or of other persons. Executive Director Texel recommended that the Board waive the hearing and approve the Petition for Charter Amendment 11. Ms. Gottshalk moved to waive the hearing and approve Polk County Rural Public Power District’s Petition for Charter Amendment 11, adding the language “nor to issue general obligation bonds” to its charter. Mr. Moen seconded the motion. Voting on the motion: Chairman Reida – yes, Vice Chairman Hutchison – absent, Ms. Gottschalk –yes, and Mr. Moen –yes. The motion carried 3 – 0 with one absent and one vacancy.
The next item on the agenda was the Stanton County Public Power District’s Petition for Charter Amendment 6. This petition is also in response to the Board’s decision in the Central Nebraska PP and ID proceeding concerning the language prohibiting the issuance of general obligation bonds. The Petition also addresses additional concerns about the description of the chartered territory. Stanton Co. PPD filed its Petition on September 1, 2023. Section V of the District’s charter states that the District lacks the power of taxation. The Petition would add the language “nor the ability to issue general obligation bonds.” Charter section II establishes the District’s chartered territory. The section currently states that the District’s chartered territory is Stanton County, as set forth in Article 1, Chapter 25, Compiled Statutes of Nebraska for 1929. The Petition addresses concerns that the District does not serve a portion of the northwest corner of Stanton County, and it serves small portions of Wayne, Madison and Cuming counties. The Petition would correct these inconsistencies. Exhibit B to the Petition shows the areas being removed and added. Executive Director Texel told the Board that the directors are elected at-large, so he did not require the district to submit the population figures that are normally required when a district’s territory is changed. Since the directors are elected at large, the changes can have no effect as far as equal representation is concerned. Section VI of the charter language is being amended to include the number of directors. The number of directors is not currently stated in the charter language. The Board published notice of the proposed amendments for three consecutive weeks in two local newspapers in the district’s territory. The notice was published in the Stanton Register and the Wisner News-Chronicle newspapers on September 13, 20 and 27, 2023. The Board did not receive any protest or objection to the proposed changes. Nebraska Revised Statute section 70-663 allows the Board to approve the petition without a hearing if no protests or objections are filed. As with the previous agenda item, the Board needs to find that the charter amendment will not be contrary to the best interests of the district and will not jeopardize or impair the rights of creditors of the District or of other persons. Executive Director Texel recommended the Board to waive the hearing and approve the Petition for Charter Amendment 11. Ms. Ellen Kreifels, legal counsel for the District, addressed the Board and stated that the chartered territory was changed so that it would align with the District’s service area boundary. Mr. Moen moved to waive the hearing and approve Stanton County Public Power District’s Petition for Charter Amendment 6 as stated in its Petition. Ms. Gottschalk seconded the motion. Voting on the motion: Chairman Reida – yes, Vice Chairman Hutchison – absent, Ms. Gottschalk –yes, and Mr. Moen –yes. The motion carried 3 – 0 with one absent and one vacancy.
The next item on the agenda was PRB-4007. This is an application filed by the Nebraska Public Power District for authority to construct .57 miles of 7.2 kilovolt (kV) distribution line in Cass County, Nebraska. The application was submitted on October 4, 2023. The application requests to relocate and rebuild an existing line used to serve current NPPD customers. The line would be in the retail service area of the Omaha Public Power District. The Board received a signed consent and waiver form from OPPD. The existing line would be moved out of a densely wooded area to run along a right-of-way. The Board consulted with the Nebraska Game and Parks Commission as required by Neb. Rev. Stat. section 37-807(3). In a letter dated October 12, 2023, the Commission determined the project is in the range of the endangered Northern Long-Eared Bat, and the threatened Western Prairie Fringed Orchid, American Ginseng and Southern Flying Squirrel, as well as the federal proposed Tri-Colored Bat. The project area has no suitable habitat for the Western Prairie Fringed Orchid. The woodland area has suitable habitat for American Ginseng, Northern Long-Eared Bats, Southern Flying Squirrels and Tri-Colored Bats. The use of underground line in the forested area will avoid habitat for American Ginseng and the flying squirrels. The Commission contacted NPPD’s contractor, which stated that the tree clearing will occur outside the bats’ active period of March 1 to October 31. With the confirmation from the contractor, the Commission determined the project “May Affect, but is Not Likely to Adversely Affect” any threatened or endangered species, and the Commission did not object to the Boards’ approval of PRB-4007. Chairman Reida stated that moving the line outside of the wooded area was a good decision to avoid any potential fires. Ms. Gottschalk made a motion to approve PRB-4007 with the stipulation that NPPD comply with the mitigation measures described by the Nebraska Game and Parks Commission in its letter dated October 12, 2023. Mr. Moen seconded the motion. Voting on the motion: Chairman Reida – yes, Vice Chairman Hutchison – absent, Ms. Gottschalk – yes, and Mr. Moen – yes. The motion carried 3-0, with one absent and one vacancy.
The Board next agenda item was the executive director’s report. The first item was the update on Southwest Power Pool (SPP) activities. The Board had a copy of JK Energy’s monthly activities report. The Board did not have any questions about the update and since Vice Chairman Hutchison was absent there was no further discussion.
The Board members then discussed the SPP Regional State Committee (RSC) succession planning activities. Vice Chairman Hutchison, Ms. Gottschalk and Executive Director Texel met with Nebraska Power Association representatives Shelley Sahling-Zart and John McClure after the August PRB meeting. The Board had previously discussed what changes it thought should be addressed and asked to have those sent to Mr. McClure and Ms. Sahling-Zart for further discussion. The changes that were agreed upon were to eliminate the requirement that one Board members be an accountant, to allow one member to be appointed with less than four years separation from a utility or holding elective office, allow members to serve three consecutive terms instead of two, and request a per diem increase to $100. The changes that were specific to the RSC designee member was to coordinate with the Governor’s office to identify a candidate that is interested, knowledgeable, willing and has the time to assume the responsibilities associated with the RSC position. The plan is to eventually also whether the PRB’s contractor who is serving as Nebraska’s CAWG member should remain a contractor or become a PRB employee. That discussion will not be taken up this year, though.
Chairman Reida discussed the American Public Power Association’s Legal and Regulatory Conference, which he had attended. One of the speakers discussed how Regional Transmission Organizations (RTO) are proposing to address backlogs in the study queue for proposed transmission projects. They were proposing to study these projects as a cluster instead of by first in, first out. There was also a discussion of supply chain issues for transformers. Chairman Reida said it was a very interesting conference.
Robin Spady, OPPD Director of Energy Regulation, extended an invitation for the to the Board to tour the new natural gas generation facility sites of Standing Bear Lake and Turtle Creek. The Board members welcomed the invitation and stated that they would need to work out an appropriate time to do the visit.
Robert Pick, NPPD Senior Manager for Energy Market Strategies, asked about the NPPD application for a transmission line in Madison and Stanton counties (PRB-4006). There was some misunderstanding as to which application this was and then it was realized this was the application that will require a hearing. NPPD had filed a motion for a continuance in this proceeding, which was granted by the hearing officer. The hearing for the application had originally been scheduled for that day. Although the agendas available in the room and mailed out had removed the item, the agenda on the Board’s website still included the application. Executive Director Texel apologized for the confusion. The hearing and any PRB action will be addressed at the November meeting.
Executive Director Texel stated that the next PRB meetings are scheduled for November 17, December 15, 2023, and January 19, 2024.
Ms. Gottschalk moved to adjourn the meeting. Mr. Moen seconded the motion. Voting on the motion: Chairman Reida – yes, Vice Chairman Hutchison –absent, Ms. Gottschalk – yes, and Mr. Moen – yes. The motion carried 3 –0 with one absent and one vacancy. The meeting was adjourned at 9:44 a.m.
Timothy J. Texel
Executive Director and General Counsel
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