Unprecedented flooding along the Missouri River has cost the Omaha Public Power District $44.5 million so far, and there remains no certainty over how high costs might rise — or how much of the burden ratepayers will share.
OPPD's flood fight thus far, now into its third month, has been successful in protecting the $3 billion in assets the utility says are in harm's way.
“All in all, we're in good shape,” Jon Hansen, vice president of energy production and marketing told the board this week. Hansen is responsible for keeping the coal plants dry and running. He also oversees the purchase and sale of energy on the market.
Once the Missouri returns to its channel, which could come as early as mid-September, OPPD will be able to assess the full extent of damage and have a better idea when it might get flood-idled Fort Calhoun Nuclear Station back online.
“There are some variables still out there as we — hopefully — move through one last brutal month,” board member John Thompson told his colleagues.
About two-thirds of the cost thus far, roughly $28.7 million, has been spent on the actual flood fight — building berms, running pumps and sandbagging entrances. Much of that amount could be eligible for reimbursement through the federal disaster aid program.
The remainder, $15.8 million, has been spent replacing the electrical power that OPPD would have produced had its nuclear station been able to operate. Typically, federal aid doesn't reimburse such expenses, but OPPD is seeking a waiver.
Fort Calhoun provides OPPD about 25 percent of the electricity it produces, and the peak summer demand season is the costliest time to have a major plant offline.
In July alone, OPPD spent $9.7 million replacing power Fort Calhoun would have generated, Thompson said.
This year, July was especially hot, Edward Easterlin, vice president and chief financial officer, told the board.
In July, temperatures that typically trigger higher demand for air conditioning were 44 percent above normal.
With Fort Calhoun offline in June and July, OPPD says it missed out on the chance to sell $5.1 million in surplus electricity to other utilities.
OPPD officials say they do not yet know whether the utility will have to increase rates to address flood costs, but Gary Gates, president, said it remains possible that the utility will be able to avoid a rate hike.
OPPD expects some of its expenses to be picked up by insurance and is awaiting word on the extent of its eligibility for federal disaster aid. It also trimmed $9 million in planned expenses.
The Army Corps of Engineers took its first steps at the end of July toward reducing the record amount of water it is releasing from Gavins Point Dam. High flows out of the dam have inundated the Missouri River valley, surrounded the nuclear plant, washed around transmission towers and threatened coal plants.
The corps has cut releases about 6 percent, and river levels at Fort Calhoun have dropped about eight inches.
David Bannister, vice president and chief nuclear officer at Fort Calhoun, said some of the catwalks are being dismantled and workers are washing pavement as it emerges from floodwater.
“(Workers) are excited to see dry pavement and dry ground. We're looking forward to getting the plant started.”
Tim Burke, OPPD's vice president of customer service and public affairs, said the nuclear plant will be reopened when only when it's clear that everything is working properly.
The utility this week is submitting a plan for restarting the reactor to the Nuclear Regulatory Commission.
“We'll work hand-in-hand (with the NRC) through this process,” he said.
OPPD provides electricity to 754,000 people in southeast Nebraska, including the Omaha metro area. Annual revenues are about $1 billion.
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