Capital Program Electric system requirements are continually evaluated and long-range recommendations are made for capital investments necessary to serve the growing load requirements with a reliable and economical power supply. The capital program is financed with revenues from operations, bond proceeds, investment income and cash on hand. Certain capital expenditures have been deferred, where possible, as a result of these challenging economic times. The following table shows actual capital program expenditures, including Allowance for Funds Used During Construction, for the last three years and projected expenditures for 2010 and 2011 (in millions). Projected Actual Capital Program 2011 2010 2009 2008 2007 Production $ 141.1 $ 143.8 $ 93.0 $ 213.8 $ 177.1 Transmission and Distribution 95.0 81.0 69.5 81.9 122.2 General 28.0 27.7 18.3 17.8 6.1 Total $ 264.1 $ 252.5 $ 180.8 $ 313.5 $305.4 Production plant includes expenditures related to the generating facilities. A significant amount of the actual and projected expenditures are for the Nebraska City Station Unit 2 and the Fort Calhoun Station. • Construction of the Nebraska City Station Unit 2 was completed on schedule and within budget in May 2009. • Fort Calhoun Station expenditures include the extended power uprate, the expansion of the maintenance building and other plant improvement projects. The extended power uprate is scheduled for completion in 2013 and will add 75 MW of generating capability to the Fort Calhoun Station. Transmission and distribution system upgrades include new technologies to ensure reliability and efficiency while providing important operational information. The Nebraska City Station Unit 2 project also included transmission projects completed in 2009. General plant expenditures for 2009 include the purchase of communication equipment to support the transmission and distribution system upgrade. In addition, new general ledger and budgeting systems were implemented and upgrades to the customer information system began. In 2010 and 2011, projected expenditures include replacement of trucks and construction equipment.
GENERAL FACTORS AFFECTING OPPD AND THE ELECTRIC UTILITY INDUSTRY OPPD and the electric industry continue to be affected by a number of factors which could impact the competitiveness and financial condition of all electric utilities.
Federal Energy Legislation A new Congress and Administration have made energy and climate issues a legislative priority. In June 2009, the House of Representatives passed an energy and climate bill with sweeping implications for the electric utility industry. Carbon cap and trade provisions, a Renewable Energy Standard (RES) and other items could result in substantial rate increases if enacted into law. The Senate has not acted on this legislation and passage into law is not anticipated for the remainder of 2010. The Senate passed a stand-alone energy bill in June 2009 out of the Senate Energy and Natural Resources Committee, but the legislation has not been acted on by the full Senate. This legislation does not contain carbon cap and trade provisions but does include an RES. The outlook for this legislation is unclear at this time. OPPD will continue to monitor the status of energy and climate-change legislation in Congress and continue to provide input through public power industry groups and the Nebraska Congressional Delegation.
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