Informational Forums Slidedeck

Nebraska Public Power DistrictPublic Informational Forum

6:00pm-9:00pm

Welcome

2

Moderator

Energy management consultant for 30 years

CEO of ScottMadden for 20 years

Has led over 50 IOU, public power and cooperative strategy engagements over the past 10 years

Routinely works with executive leadership teams and boards of directors

Brad Kitchens

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m

Tom Reddoch, EPRIPrincipal Technical Executive

Public Information Forum on Decarbonization

Priorities of Electricity ServiceCost, Reliability, Environmental Impacts

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m4

Advance innovative solutions to make power systems more flexible, resilient and connected, to provide society with safe, reliable, affordable, and environmentally responsible electricity

EPRI’s Mission


Three Key Aspects of EPRI

CollaborativeBring together scientists, engineers, academic researchers, and industry experts

IndependentObjective, scientifically based results address reliability, efficiency, affordability, health, safety, and the environment

NonprofitChartered to serve the public benefit


SystemReliability

& Resilience

Electric System

Flexibility

End-UseCarbon

Reduction

Education &Informing Policy

Low-Carbon

Resources

EPRI’s strategic research themes


Integrating systems and resources to provide Safe, Reliable, Affordable, and Cleaner energy and expanded customer choice

Integrated Energy NetworkCustomers at the center

Advanced data communicationsFlexible generation, storage, and energy uses


A brief history of electric power industry – early years

1879

Thomas Edison patents the light bulb

1882

First workable electric system built by Thomas Edison at Pearl Street Station, New York

1888

Nikola Tesla invents alternating current (AC) system, allowing long

distance power transmission

1893

Tesla and Westinghouse win competition at Chicago

World Fair and power grid contract using their AC over

Edison’s DC

Tesla Westinghouse

1890s

Niagara Falls harnessed to power Buffalo, NY.

Electric service begins in major cities


A brief history of electric power industry (continued)

1920s

Most Urban Areas ElectrifiedRegulation spreads to two‐thirds of states

Utilities emerge with “obligation to serve”

1935

Regulates interstate electricity

FederalPower Act

1936

Brings electricity distribution lines to farms and rural areas throughout the US

Rural Electrification Act

1930s to

1980s

Rapid Electrification

Build‐up of power plants and vast networks of power linesElectric appliances emerge NPPD founded in 1970PURPA passed in 1978

1992 &

2005

Higher energy efficiency standardsMandatory reliability

standards

Energy Policy Acts


How electricity gets to youElectricity is generated and leaves the plant

Voltage is increased (“step up”) substation

Electricity flows long distances via

transmission lines to where power is needed

Voltage is decreased (“step down”) at a substation

Distribution power lines

carry electricity Electricity reaches your home or business


Diverse ways to generate power at NPPDWind

Solar Nuclear Hydro

Natural Gas Coal

Gerald Gentleman Station (Sutherland)Beatrice Power Station (Beatrice)

Cooper Nuclear Station (Brownville)Kearney

Ainsworth Wind Facility (Ainsworth)

North Platte Hydro


Transmission & Substations

Thick wires on tall towers carry high‐voltage electricity from power plants to local communities and connect one region to another

Stations that transform high voltage electricity from the transmission system to lower voltage electricity for distribution


Distribution

Thinner wires on poles (or underground in some areas) carry lower voltage power to homes and businesses


Extensive coordination to deliver electricity to customers


NPPD is part of a regional network that ensures reliability

Southwest Power Pool (SPP) is a non‐profit organization that

coordinates power flow across over 65,000 miles of high‐voltage

transmission lines spanning 14 states


Electric utilities balance several core objectivesElectricity must be produced exactly when needed in real time to meet customer demand and to avoid system failure

Each type of generation source has its own unique attributes: Availability, Reliability, Cost, and Environmental impact

Utility decisions to enhance any one objective affects the others


Business and regulatory perspectives Regulated utilities have an obligation to serve customers and bear the costs necessary to provide that service

Utilities recover costs to generate or purchase electricity and build and maintain the transmission and distribution systems through rates

Decisions on infrastructure investments affecting ratepayers are subject to regulatory or other supervisory review

© 2021 Electric Power Research Institute, Inc. All rights reserved.w w w . e p r i . c o m

Bill Howe, EPRIProgram Manager

Public Information Forum on Decarbonization

Business Risk of Carbon and DecarbonizationCost, Reliability, Environmental Impacts



Energy Supply

Ensuring low‐cost access to energy

Regional mix based on available resources

Evolving as societal priorities change over time


U.S. Electricity Generation by Fuel Supply: 2004 – 2019

‐500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Thou

sand

MWh Net Gen

eration

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Solar values include rooftop PV estimates from 2014 forward

Data source: EIA 2019Based on total energy generated

Coal Natural Gas

Other Gas

Hydro

Wind

Solar

Wood

OtherPetroleum

Nuclear

Geothermal

Biomass


U.S. Electricity Generation Fuel Mix: 2004 2019

Coal ↓ ↓ Gas ↑ ↑ Nuclear & Hydro ↔ Wind & Solar ↑

Coal23%

Petroleum0%

NaturalGas38%

Nuclear20%

Hydro7%

Wind7%

Solar3% Other 2%

2019

Coal50%

Petroleum3%

NaturalGas18%

Nuclear20%

Hydro7%

Wind0%

Solar0% Other

2%

2004

Data source: EIA 2019Based on total energy generated


NPPD’s evolving generation mix

NPPD has been on the decarbonization path for the past two decades

2005 2020

Based on total energy generated


Integrated Systems

Efficiency & reliability to meet societal needs

Flexibility & security growing priorities

Growing consumer engagement with the energy system


Challenge of modernizing the grid to integrating new technologies that customer adopt


COMMUNITY AND ENVIRONMENT

As industry pursues cleaner generation and

electrified communities, there is opportunity to

ensure everyone can reap the benefits, regardless of

socioeconomic status.



What does decarbonization look like?






Carbon Policies and Pricing Initiatives Around the World

World regulators are establishing the ground rules for carbon reduction

• Many countries are establishing maximum carbon emissions

• A carbon tax is being established in many areas

• The Paris Agreement is driving change in how carbon is calculated, tracked and recorded


Carbon markets and pricesCarbon prices in trading markets: European Union, California, Northeast US

In 2019, global carbon market prices ranged up to $30 per metric ton

Carbon pricing presents a potential business risk for carbon emitters

Some future price estimates point significantly higher


Many multinational companies are focusing on clean energy

• 90% of S&P 500 companies have published sustainability reports, up from 20% in 2011

• 163 Fortune 500 companies have formal climate targets

• 23 countries have Fortune 500 headquartered companies

• Many multinational companies are needing green energy to meet their climate targets

Companies pressuring utilities to clean power supply to meet carbon reduction goals


NPPD’s evolving generation mix into the future

Continued decarbonization involves consideration of choices and impacts

2005 2020 Future


Advancing core principles of electricity service


Together…Shaping the Future of Electricity

Please come to a microphone.

Questions or Comments

10 Minute Break

August 2021

Tom KentPresident & CEO

Strategic DirectiveSD-05

Discussion Draft

SD-05 Draft for Discussion

1. Carbon emissions and emissions regulation are a significant business risk for Nebraska Public Power District (NPPD) and its customers. NPPD recognizes the importance of balancing affordability, reliability / resilience, and sustainability when addressing the business risks related to carbon emissions and emissions regulations. This policy establishes the Board of Director’s goal for carbon emission reductions that will be used to guide NPPD in determining future generation resource planning options.

40


2. NPPD adopts the goal of achieving “net zero” carbon emissions from NPPD’s generation resources by 2050. This may be achieved by using certified offsets, energy efficiency projects, lower or zero carbon emission generation resources, beneficial electrification projects, or other economic and practical technologies that help NPPD meet the adopted goal.

41


3. NPPD Management will report to the Board annually the carbon emissions of generating resources under NPPD “control” on both a total short tons of CO2 emitted and CO2intensity (lbs. / MWh) basis including effects of offsets, etc., as discussed above.

42


4. The Board of Directors may evaluate and reconsider the District’s Carbon Emissions Goal if it is determined that meeting or progressing toward the goal will adversely impact the District’s ability to continue to meet the Board’s strategic directives concerning reliability (BP-SD-03) or cost competitiveness (BP-SD-04).

43

Questions?

Stay connected with us.

44

45

Thank you for coming!

Please Take the Survey on NPPD.com

Documents

Informational Forums Slidedeck