Question's & Answer's
How much will proposed climate change legislation
impact my electric bill?
No one can say for sure what the exact costs of any proposed legislation will be for NPPD, whether it be to reduce carbon dioxide emissions, pay for cap and trade allowances, and/or meet a renewable electricity standard. The fact that technology to capture or store carbon does not yet exist on a commercial wide scale makes it even more difficult.
When will NPPD need a new generating resource?
NPPD is able to meet customers’ near-term electricity needs with existing generation resources, and it doesn’t look like any more generation will be needed until around 2020. That doesn’t stop us from planning ahead. NPPD is evaluating all types of generation resources to determine what our next baseload resource will be. We review each option with the goal to keep electric rates affordable, maintain overall system reliability and meeting regulatory requirements.
What types of renewable energies besides wind are being considered?
NPPD recently issued a request for proposals for small renewable projects that must be between 25 kilowatts and 2 megawatts, improve energy efficiency and / or be a renewable energy resource, and meet PURPA (Public Utility Regulatory Policy Act) standards. NPPD will evaluate the proposals in the fall of 2009 and into 2010 and select those that are economically viable and beneficial to NPPD.
NPPD will be installing a 44.1 kW photovoltaic demonstration unit with the construction of a LEED (Leadership in Energy and Environmental Design) building that will serve as an operations and customer service center in Norfolk.
NPPD was involved in a methane recovery project that captures methane from pig manure and provides enough fuel to power an 80 kW generator. NPPD buys all of the energy it produces. Opportunities with other parties interested in similar projects are possible.
NPPD demonstrated a small water pumping system powered by solar photovoltaic cells in the mid 1990s, and we are evaluating the cost effectiveness of small low-head hydro units appropriate for flows in canals or other applications that do not require impoundments that are difficult to permit.
The possibility of carbon dioxide constraints may make biomass a more attractive fuel. NPPD is performing cost studies of biomass as fuel and assessing its economic viability.
How can utilities reduce their carbon dioxide emissions?
Most cannot. There is currently no commercially available technology utilities can install to reduce their carbon dioxide emissions. Once developed, it could easily take ten years to meet the estimated demand of retrofitting old plants and for new plant installations.
One option, carbon sequestration, has potential, but there are many questions about the risks and liabilities associated with potential leakage, along with the potential to contaminate water supplies, cause earthquakes and so on. This challenge may delay the application of the process many years.
Besides climate change, what other environmental challenges do utilities in Nebraska face?
Every fuel source has pros and cons. Drought affects hydropower. Anti-nuclear advocates raise concerns about waste. Wind farms must be cognizant of avian and endangered species, and coal-fired facilities must address regulations regarding regional haze, mercury, lowering of the ozone standard and water quality standards. There is no perfect energy resource.
To address environmental concerns, utilities often take such actions as:
- constructing redundant processes that protect humans from waste;
- installing technologies like bag-houses for particulates, scrubbers for sulfur dioxide, combustion controls and selective catalytic reduction equipment for nitrous oxide;
- activating carbon injection and collection for mercury removal;
- constructing new water treatment equipment and ponds to address water quality; and developing nesting habitats, to protect various species.
As future regulations are advanced and power plant technologies change, there will continue to be a cost associated with equipping facilities with state-of-the-art environmental controls.
Where does nuclear energy fit into the equation?
It is highly likely that a new generation of nuclear plants will be built in the U.S. as they are being built in other parts of the world. However, the number of plants and construction dates remains unclear. In the event that NPPD would decide to add to its nuclear portfolio, it would likely do so in partnership with other utilities.
What role does wind-powered generation play in Nebraska’s future energy mix?
An important one. NPPD’s Board of Directors set a goal that 10 percent of NPPD’s 2020, generation mix will come from renewable energy sources. To meet this goal, NPPD will need to add at least 80 megawatts of wind-powered generation every other year until 2020. NPPD owns the state’s largest public power wind farm in the state and has signed agreements to purchase the power output from two privately owned facilities: the 80-megawatt, Elkhorn Ridge Wind Energy Facility outside of Bloomfield, Neb., and the Crofton Hills Wind Farm, a 42-megawatt facility, outside of Crofton, Neb., yet to be constructed.
Meanwhile, it is also evaluating projects for wind facilities near Broken Bow and Petersburg, Nebraska, that could add an additional 160 potential megawatts of wind to NPPD’s generation purchases by the end of 2010.
What is your utility doing to reduce greenhouse gas emissions today?
NPPD’s plants meet all current federal and state air pollution and water quality control standards and regulations. We voluntarily take action to lower the greenhouse gas emission intensity at our power plants and uses sub-bituminous low-sulfur coal from Wyoming at our coal-fired power plants. NPPD uses bag-houses at two of its coal plants to remove more than 99 percent of the fly ash created during generation and verifies that discharged flue gas from the power plant stacks meets state and federal environmental regulations. As a side note, the fly ash is sold to buyers as a concrete or asphalt additive or disposed of in an on-site ash pit.
What is your utility doing to address rising fuel costs?
One method we use to minimize cost increase for fuel is to purchase the fuel using a portfolio approach. This means we take advantage of market opportunities to find the best short-term and long-term prices for the commodities. Because we cannot control the fluctuations in fuel markets, it is our goal to negotiate the best, most economical price for our customers, whether in our long-term contracts or in current negotiated agreements.
What are the six greenhouse gases of concern and where do they come from?
- Carbon dioxide (CO2) - Carbon dioxide cycles naturally between the atmosphere and living organisms. Plants and algae remove CO2 from the atmosphere via photosynthesis, while all living things release CO2 via respiration (i.e., breathing). Carbon dioxide also cycles back and forth between water on the Earth's surface (freshwater and the oceans) and the atmosphere. In addition to these natural processes, humans release large quantities of CO2 to the atmosphere by burning fossil fuels, driving automobiles, deforestation, and other industrial processes.
- Methane (CH4) - Methane is a natural byproduct of decomposition, but significant quantities are also produced via agriculture and raising livestock as well as by fossil fuel production.
- Nitrous oxide (N2O) - Nitrous oxide is released naturally from terrestrial soils and oceans, but substantial quantities are also generated from the use of nitrogen fertilizers in agriculture and through some industrial processes.
- Sulfur Hexafluoride (SF6) - SF6 is a highly potent, manmade greenhouse gas used in the electric industry for insulation and current interruption in transmission and distribution equipment. SF6 is also widely used by the magnesium industry. With a global warming potential 23,900 times greater than CO2 and an atmospheric life of 3,200 years, one pound of SF6 has the same global warming impact of 11 tons of CO2.
- Perfluorocarbons (PFCs) - PFCs are extremely potent manmade greenhouse gases used primarily in the production of aluminum. They have a lifetime up to 50,000 years. Global warming potentials (GWP) range from 6,000 to over 9,000 times that of carbon dioxide.
- Hydrofluorocarbons (HFCs) - While HFCs do not damage the ozone layer, HFCs are manmade greenhouse gases most commonly used as a replacement for Chlorofluorocarbons (CFCs) which were once the most common refrigerant used in cooling and refrigeration systems until they were banned by international treaty for destroying the stratospheric ozone layer.
What is the most abundant greenhouse gas?
Water vapor is the most abundant, yet important, greenhouse gas in the atmosphere. Human activities have only a small influence on the amount of atmospheric water vapor.
What are the largest sources of greenhouse gas emissions in the U.S.?
In the US, energy-related activities account for over three-quarters of human-generated greenhouse gas emissions, mostly in the form of carbon dioxide emissions from burning fossil fuels. More than half the energy-related emissions come from large sources such as power plants and factories, while about a third comes from transportation. Industrial processes (such as the production of cement, steel, and aluminum), agriculture, other land use, and waste management are also important sources of greenhouse gas emissions in the United States.
So, what produces all the greenhouse gas emissions in the U.S.?
Energy-related activities account for more than three-fourths of the human-generated greenhouse gas emissions, and most of that is from burning fossil fuels. More than half these emissions come from power plants and factories, and about a third comes from transportation. Greenhouse gas emissions are also produced by agriculture, waste management, and industrial processes (such as the production of cement, steel, and aluminum).
What has accounted for the largest share of carbon dioxide emissions?
The process of generating electricity is the single largest source of emissions in the US, representing 39 percent of emissions from all sources across the country in 2005. Electricity is used primarily for residential, commercial, and industrial needs of lighting, heating, electric motors, appliances, electronics, and air conditioning.
What about greenhouse gas emissions from transportation?
The transportation sector accounts for approximately 33 percent of total carbon dioxide emissions from fossil fuel combustion -- the largest share of any end-use economic sector in 2005. More than 60 percent of the emissions came from personal vehicle use. The remaining emissions came from other transportation methods such as heavy duty, diesel-fueled vehicles and jet fueled aircrafts.
Does ozone layer depletion have anything to do with climate change?
Climate change and ozone depletion are two distinct but interrelated issues. Ozone depletion is not a principal cause of climate change and climate change is not a principal cause of ozone depletion. However, ozone-depleting gases - such as chlorofluorocarbons (CFCs), hydrochlorofluorocarbons (HCFCs) and halons - are greenhouse gases.
How much CO2 does an acre of trees sequester?
An acre of trees sequesters about 2-4 tons of CO2 per acre per year, depending on tree age and region where grown.
What is Global Warming Potential (GWP)?
Global Warming Potential (GWP) compares the ability of each greenhouse gas to trap heat in the atmosphere relative to CO2. GWPs are calculated as the ratio of the warming that would result from the emissions of one kilogram of a greenhouse gas to that from emissions of one kilogram of carbon dioxide over a period of time (usually 100 years).
What is Carbon Dioxide Equivalent (CDE)?
Carbon Dioxide Equivalent is a metric measure used to compare the emissions from various greenhouse gases based upon their global warming potential (GWP). Carbon dioxide equivalents are commonly expressed as "million metric tons of carbon dioxide equivalents (MMTCDE)” or “CO2e”. The carbon dioxide equivalent for a gas is derived by multiplying the tons of the gas by the associated GWP. MMTCDE= (million metric tons of a gas) * (GWP of the gas) For example, the GWP for methane is 24.5. This means that emissions of one million metric tons of methane are equivalent to emissions of 24.5 million metric tons of carbon dioxide.
How much carbon dioxide do humans contribute through breathing?
The average person, through the natural process of breathing, produces approximately 2.3 pounds of carbon dioxide per day. The actual amount depends strongly on the person's activity level. However, this CO2 is part of a natural, closed-loop cycle and does not contribute to the greenhouse gas concentrations in the atmosphere. Natural processes of photosynthesis (in plants) and respiration (in plants and animals) maintain a balance of oxygen and carbon dioxide in the atmosphere.