Generator_Spring 2023_Final

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BOARD OF DIRECTORS Steve Heesacker Chairman Bob Cerv First Vice Chairman Jim Donoghue Second Vice Chairman Mike Fleming Secretary Dick Tooley Treasurer Rich Aerni Alan Drozd Chris Langemeier Larry Zach EXECUTIVE STAFF Neal Suess President/CEO Walt Williams Vice President, Accounting & Finance/CFO Todd Duren Vice President, Corporate Services Korey Hobza Vice President, Engineering Dan Hellbusch Vice President, Operations The Loup <strong>Generator</strong> is published quarterly as a service for Loup employees, families, friends, and associates. For feedback, story ideas and submissions, contact: Stacy Wemhoff Communications Coordinator 402-562-5711 swemhoff@loup.com Counties receive $2.1 million Loup Power District recently delivered its inside revenue payments and the second half of the in-lieu-of-tax payments to the counties it serves. This is a benefit of being served by a locally controlled, not-forprofit utility. Like other businesses, Loup Power District pays sales tax, gasoline taxes, motor vehicle license fees, and permit fees. The in-lieu-of-tax payments are made to service area counties in lieu of occupation, personal property, and real estate taxes. County treasurers will distribute the funds to the various taxing bodies in each county. Total in-lieu-of-tax payments for 2022: Platte — $ 9,713.77 Boone — $5,078.34 Loup pays communities $1.3 million Loup Power District recently delivered lease payment checks totaling more than $1.3 million to area communities. Each of these communities owns their electric distribution systems. These payments compensate them for the use of those systems for the fourth quarter of 2022. Loup Power District renewed its membership in Community Clubs and Chambers of Commerce in towns throughout its service area. Checks totaling $31,462 were presented to communities in Boone, Colfax, Nance, Platte, and Madison counties. Payment amounts are based on the 2022 gross revenues in each community. “Membership renewal demonstrates Loup Power District’s commitment to community involvement in all of our area towns,” said Todd Duren, Vice President of Corporate Services for Loup Power District. Nance — $ 6,445.84 Colfax — $240.48 Madison — $359.27 Total — $ 21,837.70 Communities use the funds for a variety of public projects. The payments were: Columbus—$985,653.03 Platte Center—$8,916.75 Monroe—$12,242.23 Tarnov—$1,249.05 Creston—$5,082.66 Humphrey—$23,554.52 Lindsay—$51,123.29 Cornlea—$1,626.79 Newman Grove—$17,302.55 The District is also required to make additional payments to the counties to guarantee they receive 5 percent of the inside revenues from the various towns in their areas subject to the in-lieu-of-tax payments. Additional payments to the counties for 2022: Madison — $35,417.07 Platte — $1,641,628.92 Nance — $123,549.88 Colfax — $108,337.06 Boone — $185,799.17 Total — $2,094,732.10 Duncan —$15,800.89 Fullerton—$29,582.02 Genoa—$21,471.24 Belgrade—$3,257.44 Richland—$2,699.98 Howells—$17,546.50 Leigh—$15,013.18 Clarkson—$16,654.46 Albion—$43,240.94 Cedar Rapids—$19,478.51 Primrose—$1,441.62 Petersburg—$9,781.35 St. Edward—$18,390.12 Total — $1,321,109.12 Loup renews community memberships Towns and their payments include: Columbus Area Chamber —$22,309 Albion Chamber of Commerce—$1,583 Lindsay Community Club—$1,403 Fullerton Chamber of Commerce—$1,104 Genoa Chamber of Commerce—$744 Humphrey Community Club—$727 Howells Community Club—$593 Clarkson Community Club—$584 Newman Grove Community Club—$550 St. Edward Community Club—$556 Cedar Rapids Community Club—$496 Petersburg Community Club—$288 Leigh Community Club—$425 Primrose Community Club—$100 2 | GENERATOR
pReSIDeNT’S MessAGe District finishes $1.5M above hydro generation forecast Many people know the District owns two hydroelectric power plants that generate electricity — one near Monroe and one near Columbus. What many people do not know is that the District sells the power from these facilities to NPPD, and NPPD includes this generation as part of their portfolio to provide power and energy to its customers. This process has changed quite a bit over the years. When the District first entered into a contract to sell this power to NPPD back in the early 1970s, the payment the District received was a specific dollar amount each year that increased with inflation. There was no requirement regarding how much power was generated and sold to NPPD, and the District received this dollar amount no matter how much energy was generated. That changed in 2007, when the District started getting paid for each kilowatt-hour of energy that was generated and sold to NPPD. This was based upon a formula tied to the average cost of all of NPPD’s generating facilities. Loup did well under this concept, as the District hydro operators were able to generate significant amounts of power during these years (mostly due to upgrades performed at the hydroelectric generating plants). Another change was implemented in 2022. Under a new contract, the District still sells power to NPPD, but the pricing is based on the market price for power as determined by the Southwest Power Pool (SPP). See page 11 for more detail about how the SPP works. Although District personnel knew about the SPP and the SPP markets, selling power based upon the SPP market price was a new concept to everyone. I am happy to say that overall 2022 was a very good year for revenue received from the hydroelectric facilities. The District finished well above budget (by almost $1.5 million) in revenue received for the generation from the hydroelectric facilities. The District’s hydroelectric operators, Headworks crew, and power canal crew did a great job in 2022 making sure to maximize the generation available —overall the District had almost 20 percent less generation in 2022 compared to 2021. Using data from NPPD and obtaining knowledge about the SPP markets, the hydroelectric operators were able to maximize the generation at times of peak power pricing and substantially beat the forecasted revenue projection — even with less water available to generate power. A tip of the hat goes out to all of the hydroelectric crews for a job well done in 2022. This was a significant change, and a lot of new ideas were thrown their way in a short amount of time. As the District learns more and more about the SPP markets, we will continue to grow our knowledge of how to best maximize the profitability of the hydroelectric facilities. NEAL SUESS President/CEO SPRING <strong>2023</strong> | 3
Page 1: GENERA OR a publication of Loup Pow
Page 5 and 6: GHW SETTLING BASIN BANK WORK The Ge
Page 7 and 8: $ HOW MUCH HOW MUCH ENERGY DO HEAT
Page 9 and 10: A TEAM Left: Plant Operator Justin
Page 11 and 12: What is the Southwest Power Pool? O
Page 13 and 14: A storm warning means TAKE ACTION S
Page 15 and 16: REY JARECKI Carpenter/Utility Carpe

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