Newsletters > June 2007 Customer Newsletter

 

News from the Northeast Power
June 2007

 

Automatic Meter Reading (AMR) Project is now underway
Over 1,200 meters have been installed in the Villages of Allen, Concord, Dixon, Newcastle, Ponca and some of the rural areas around Wayne, Dixon, and Wakefield. Even though the new meters have been set, they are not yet working in automatic mode. By August, we anticipate installing the remaining pieces of communications gear needed to get these meters to “talk” to the billing office in Wayne. Some, but not all, of this gear is in now place. We then will do testing and troubleshooting before the first bills go out under the AMR system. The AMR system is on schedule for 100% implementation within 18 months.

 

Emergency Load Curtailments might be needed this summer
We have been asked by our wholesale energy supplier, NPPD, to be prepared to shed loads on an emergency basis if this is needed to avoid a wide spread outage. NPPD is working to increase the capacity of its high voltage lines after this winter’s storms. Keep in mind that it is our job to plan for emergencies and to be ready to act. We do not greatly anticipate the likelihood that such a curtailment will become a reality, but we must be ready. This notice is part of this process. The Northeast Nebraska PPD has customers in three different ‘load zones’ for NPPD and any one or all three of these zones could become overloaded. Our response for emergency load shedding will depend upon the zone affected. Our plan at Northeast Power will be to respond to an emergency by taking selected substations out of service through the hours of the emergency period. If you have a special need or situation that requires uninterrupted power, then you should be advised of our plans for emergency load shedding and you should make plans to protect yourself and your equipment. Please know that such load shedding is the very last resort. Everyone at NPPD and Northeast Power will do everything possible to avoid such an emergency, but we must be prepared to act just in case it is unavoidable.

 

New Power Line to Emerson
If you drive 856 Rd. for two miles east of Hwy 9, then you will see our crews setting poles. This new line is to replace older lines, which serve the Villages of Emerson, Thurston and the rural area south of Emerson. The new line is what we call a ‘double circuit’ that is really two power lines on one set of poles. For this reason the poles are taller and heavier than usual and carry two sets of cross-arms. Overhead electric lines are easier to maintain and quicker to fix when there is trouble.

 

Northeast Power Board Members receive designation of ‘Credentialed Directors’
In February our Board attended a series of training classes in Wayne conducted by the National Rural Electric Cooperative Association. This nationally recognized training is specifically to help Board members of local power companies understand the business trends and information to make the Board more effective in setting policy and direction.

 

All Customers are being asked to complete an ‘Application for Service’
It has been our practice to ask old and new customers alike to complete a written application for service on each metered account. For our existing customers we don’t make this request until something changes with the account, like a transfer to another customer, or a request for re-connection, etc. Our requirement to have on file a written application is not a matter of anyone’s credit standing and we hope very much that it isn’t viewed that way. Please don’t be offended if after many years as a customer you are asked to make an application. The ‘Application for Service’ by the customer is the written document that is the basis of our business relationships with customers, much like a written lease or sales agreement in other businesses. We acknowledge that our records are incomplete and slowly we hope to get an “Application for Service” from everyone. To make it as convenient as possible, all customers may complete the application via our web page at www.Northeast Power.com. If you do not own a computer, then your nearest library can be of service or you may prefer to visit our office at 303 Logan St. in Wayne, NE. Because of the need to verify identification, we do not accept these applications through the mail.

 

Wind Power is a part of our ‘Mix’
If you have ever wondered if wind power is being used in NE, then the answer is yes!. Our wholesale provider, NPPD, owns and operates a wind turbine farm near Ainsworth, NE and the energy produced by the wind turbines is put into the mix of energy produced from coal, nuclear and hydro-electric plants owned by NPPD. NPPD is beginning to do even more. Utility grade wind turbines are the most cost effective. Even then, it is a challenge to maintain a constant supply when the wind isn’t blowing.

 

Safety Information is available at www.Northeast Power.com
The Northeast Power offers (free of charge) several informative booklets dealing with electrical safety inside and outside of the home. Pictures of the booklets and a description are on our website.

 

Audit for FY2006
On April 24, 2006 the entire Board heard the results of the 2006 audit from Mr. Roger Schmidt, Jr. of the firm of Schmidt and Co., which is the Board’s independent auditor. The findings were that management is maintaining the District’s financial records in a way that fairly present the financial condition of the District in all material respects and that conform to all accepted accounting principles. Highlights from the audit for 2006:

 


The financial statements for 2006 can be viewed on our web site...

 

Balance Sheet 2006

         

Assets

 

Liabilities

 

Income Statement 2006

Electric Plant

$35,602,603

 

EQUITY

$21,640,044

 

Electric Sales

$12,638,811

Less Depreciation

(12,739,421)

       

Other Revenue

     386,794

NET ELECT. PLANT

22,863,182

       

TOTAL REVENUE

13,025,605

               
           

Cost of Power

  7,879,320

           

Transmission Expense

     199,899

           

Operation Expenses

     370,091

           

Maintenance Expenses

     329,800

INVESTMENTS

   2,046,081

 

TOTAL DEBT

   5,057,031

 

Consumer Acc’t Expenses

     408,664

           

Other Expenses

       31,332

Cash

  1,132,660

 

Current debt payments

      420,600

 

Administrative & General Exp

     729,059

Other Securities

     991,232

 

Accounts payable

      839,539

 

Depreciation

     936,754

Receivables

     953,506

 

Accrued Expenses

      411,787

 

Taxes

     529,708

Materials and Supplies

     553,652

 

Accrued Taxes

        53,796

     

Prepayments

     107,027

 

Customer Deposits

      126,550

 

TOT. OPERATING EXP.

11,414,627

               

TOT.CURRENT ASSETS

  3,738,077

 

TOT.CURR. LIAB.

  1,852,272

 

INTEREST EXPENSE

     240,138

               
           

NET INCOME from OPERATIONS

   1,370,840

               
               

DEFERRED DEBITS

       66,307

 

DEFFER.CREDITS

    164,300

 

Interest revenue

     215,093

           

Other Non-Operations Rev.

      200,281

TOTAL ASSETS

 $28,713,647

 

TOT. EQUITY& LIABILITIES

  28,713,647

 

Capital Credits Earned

        28,976

               
           

TOT.NON-OPER. REV.

      444,350

               
           

NET INCOME FOR  2005

    1,815,190

 

Northeast Power leads all Rural PPD’s in State for making payments to town and county governments
We serve 16 Villages in 5 counties. Our direct payments to local town and county governments in 2006 amounted to $529,708 (shown as taxes above) which was about ¼ of the total payments to local governments made by all rural PPD’s in the state. The average amount paid per PPD is $76,086. Yet our retail rates are less than average as in 2006 Northeast Power collected 6.99¢/kWh compared to the average in the state of 7.64¢. More specifically, Northeast Power residential costs averaged 7.31¢ vs. 7.68¢ statewide. Northeast Power also pays state and local sales taxes on about $5 million in purchases made annually.

 

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