At a glance South Dakota & Nebraska

Transcription

1 At a glance South Dakota & Nebraska An economic development fact sheet // July 2017

2 Introduction NorthWestern Energy is a major, regional provider of electricity, natural gas and related services to approximately customers in Montana, South Dakota and Nebraska. Our electric system has more than 28,000 miles of transmission and distribution lines and associated facilities serving 297 communities and surrounding rural areas in Montana and eastern South Dakota. Our natural gas system includes approximately 9,710 miles of transmission and distribution pipelines and storage facilities serving 168 communities and surrounding rural areas in Montana, South Dakota and central Nebraska. NorthWestern Energy has approximately 1,552 full-time employees. Programs & Services Listed below is a summary of NorthWestern s programs and services. Retail electric and natural gas distribution, transmission and supply services. Wholesale electric services. Business retention, business expansion and business creation through Economic Development resources. Online customer services including account access, service requests and bill payment. The South Dakota and Nebraska energy operations provide electric and natural gas distribution services to approximately 63,200 electric customers and 88,500 natural gas customers in the eastern half of South Dakota and in four Nebraska communities. NorthWestern Energy is dedicated to providing safe, reliable and cost-effective energy and services to all of its residential, commercial and industrial customers. GREAT FALLS MONTANA NORTH DAKOTA MINNESOTA SOUTH DAKOTA Electric Natural Gas Wind Farm WYOMING NEBRASKA IOWA Hydro Facilities Generating Plants Natural Gas Reserves Peaking Plants 2

3 System facts South Dakota Electric & Gas Operations Area Nebraska Gas Operations Number of Employees SOUTH DAKOTA AND NEBRASKA OPERATIONS Electric services to 25 counties in eastern South Dakota with a combined population of 226,200 (2010 census). Natural Gas services to 22 counties in South Dakota and Nebraska and a population of 357,507 (2010 census). Four cities in southcentral Nebraska Approximately 321 employees in South Dakota and Nebraska Number of Customers and Types 1 Total Residential Commercial & Industrial Electric 63,209 50,241 12,968 Natural Gas (South Dakota & Nebraska) 88,672 77,126 11,546 Cities Electric Service Natural Gas Services Aberdeen, SD YES YES NorthWestern serves 141 communities in South Dakota and four communities in Nebraska. In addition to the cities listed here, we also serve numerous small towns in South Dakota. Please consult NorthWestern Energy to determine if we serve your location. Electric & Natural Gas Retail Rates Brookings, SD NO YES Huron, SD YES YES Mitchell, SD YES YES Yankton, SD YES NO Alda, NE NO YES Grand Island, NE NO YES Kearney, NE NO YES North Platte, NE NO YES South Dakota Pricing for electric and natural gas retail services are established by tariffs filed with and approved by the South Dakota Public Utilities Commission. South Dakota has regulated natural gas and electric services. The supply portion of the bill for natural gas is subject to monthly tracker cost adjustments. The fuel and purchased power portion of the electric bill is subject to quarterly tracker cost adjustments. Nebraska Pricing for natural gas retail services are established by tariffs filed with and approved by the Nebraska Public Service Commission. The supply portion of the bill for natural gas is subject to twice yearly fuel cost adjustments and is shown separately from the delivery charge. NorthWestern Energy s electric and natural gas tariff rates and an electric rate comparison with other utilities in the U.S. are available online at NorthWesternEnergy.com. ELECTRIC OPERATIONS Service Area Size 25 counties in eastern South Dakota with a combined 2010 census population of approximately 226,200 Peak & Average Load Generation and Supply Distribution and Transmission Miles Transmission Interconnections Transmission Wholesale Rates Peak demand was approximately 330 megawatts, the average daily load was approximately 189 megawatts, and more than 1.66 million megawatt hours were supplied to customers during Own 440 MWs of electric generation serving South Dakota customers; composed of 210 MWs from three coal-burning baseload plants, 52 MWs from utility-owned natural gas plant, 80 MWs from a wind farm and 98 MWs from various natural gas and fuel oil peaking units. The utility also has an agreement with Missouri River Energy Services for 30 MWs firm capacity in 2016, 30 MWs in 2017 and 35 MWs in South Dakota has a voluntary renewable and recycled energy objective. The objective states that 10 percent of all electricity sold at retail within South Dakota be obtained from renewable and recycled resources. In 2016, approximately 26 percent of the South Dakota retail needs were generated from renewable resources. In 2017, we expect to continue to exceed South Dakota s voluntary objective at the approximately the same level. 3,550 miles distribution and transmission and 124 substations. Transmission system has interconnections with the transmission facilities of Otter Tail Power Company, Montana Dakota Utilities Company, Xcel Energy Inc., and WAPA. We have emergency interconnections with the transmission facilities of East River Electric Cooperative, Inc., and West Central Electric Cooperative. Effective October 1, 2015, we are a transmission owning member of SPP (Southwest Power Pool) for our South Dakota transmission operations. Upon entering SPP, we exited out of MAPP, which had been our transmission planning region and MAPP has since dissolved. Transmission services for retail access are provided under rates approved by the Federal Energy Regulatory Commission. NATURAL GAS OPERATIONS Service Area Size We provide natural gas to approximately 88,700 customers in 60 eastern South Dakota communities and four southcentral Nebraska communities. System Deliveries Natural Gas Distribution & Transmission System Interconnections For year-end 2016, our South Dakota deliveries were approximately 31.7 Bcf and for Nebraska, they were approximately 6.9 Bcf. We have 2,405 miles of distribution mains pipelines, 55 miles of transmission pipeline and 41 city gate stations. Pipeline interconnections with Northern Natural Gas, Northern Border, Kinder-Morgan and Trailblazer. On System-Transportation End-use customers can contract for on-system transportation services. On-system services include firm and interruptible distribution transportation and are regulated by the South Dakota Public Utilities Commission. Customers not interconnected with NorthWestern s regulated system negotiate a separate rate. Customers with large loads and bypassable locations that are connected with the regulated system may receive rate deviation from the PUC. 1 Customer Counts are as of December 31, 2016 and are from internal documents.

4 Rates Montana 2016 Electric Generation Portfolio Based on Montana MWh Delivered 2016 Electric Generation Portfolio Based on MWh Delivered RELIABLE SUPPLY South Dakota 2016 Electric Generation Portfolio Based South on MWh Dakota Delivered 2016 Electric Generation Portfolio Based on MWh Delivered NorthWestern Energy distributes electricity in South Dakota and Wind relies on its own generation to provide a reliable supply and 2% reasonable prices for its electric customers. Electric Wind services to 58% customers generally involve only one point of delivery 2% and power supply source. Customers with special needs for redundant Other Contracted Wind Contracted power sources will typically be responsible 15% for additional 12% costs related to redundant power Other 5% delivery. If a Contracted project has Wind special Contracted 15% 12% needs for redundant power 5% sources, the developers must coordinate these with NorthWestern Energy and contact the Coal utility early in the project development process. 22% Coal 42% NorthWestern Energy distributes natural gas to customers in Hydro 22% South Dakota and Nebraska. Supply requirements are fulfilled 42% through third-party fixed-term purchase contracts, natural gas storage services contracts and short-term market purchases. Hydro This supply flexibility or portfolio approach Contracted enables us to maintain 2% a diversified supply of natural gas sufficient Hydro to meet our supply Contracted 2% requirements. REGULATION AND RATES Hydro South Dakota utilities are regulated by the South Dakota Public Utilities Commission with respect to electric and natural gas service, territorial integrity, rates, terms and conditions of service, accounting records and other aspects of our operations. We have the exclusive right to serve an assigned service area in South Dakota comprised of 25 counties with a combined population of approximately 226,200 people according to the 2010 census. The Nebraska Public Service Commission has jurisdiction over our natural gas operations in Nebraska. The tariffs establish a range of service classifications for both electric and natural gas customers based on customer size and other circumstances. For customers who are not under the bundled tariffs, rates for transmission services are provided under a tariff filed with and approved by the Federal Energy Regulatory Commission. Carbon-Free 58% Carbon-Free Coal 63% Coal 63% Electric Rates Other Other 1% 1% 36% Carbon-Free 36% Carbon-Free Wind 23% Wind 23% Wind Contracted 13% Wind Contracted 13% Components displayed on the bill include: energy, demand, fuel and power factor. The fuel and purchased power portion of the bill is subject to a quarterly tracker cost adjustment. The table below shows these various billing components for a NorthWestern Energy commercial customer with a monthly usage of 14,000 kwh and 40 kw demand. South Dakota NorthWestern Energy Commercial Customer Monthly Electric Billing Components - January 1, 2017 Using 14,000 kwh & 40 kw Demand Per Month Other Other 4% 4% Win Own 6% Win Own 6% T C T C Go to NorthWesternEnergy.com for current electric and natural gas rates for residential and commercial customers. 4

5 Rates NORTHWESTERN ENERGY S SOUTH DAKOTA ELECTRIC COSTS BY SIZE & CUSTOMER TYPE 1 Residential Commercial and Industrial Rate 33 Rate 33 Rate 34 Rate 34 Monthly kwh 750 1,500 14, , ,000 Peak Monthly kw Demand N/A ,000 TOTAL ELECTRIC COSTS (Default supply, distribution, transmission & other charges) Annual Electric Cost $1,155 $1,113 $18,684 $185,844 $464,352 Average Annual Cost per kwh for Supply and Delivery $0.128 $0.135 $0.111 $0.086 $0.060 Average Monthly Cost $96.29 $203 $1,557 $15,487 $38,696 1 Rates effective January 1, 2017; fuel and purchase power portion of bill is adjusted quarterly. REGIONAL UTILITIES MONTHLY BUNDLED ELECTRIC BILLS - JANUARY 1, STATE UTILITY COMPANY Residential Commercial Industrial COLORADO ILLINOIS IOWA KANSAS MICHIGAN MINNESOTA 750 kwh 1,500 kwh 14,000 kwh & 40 kw 180,000 kwh & 500 kw 650,000 kwh & 1,000 kw Black Hills/Colorado Electric $ $368 $1,678 $23,306 $58,405 Public Service Company of Colorado $80.07 $145 $1,321 $16,320 $40,575 Ameren Illinois Rate Zone I (formerly CIPS) $89.11 $183 $1,564 NA NA Ameren Illinois Rate Zone III (formerly IP) $84.78 $184 $1,568 NA NA Commonwealth Edison Company $95.52 $162 $1,317 NA NA MidAmerican Energy - East System $75.03 $139 $911 $9,814 $30,486 MidAmerican Energy-North System $70.42 $122 $788 $8,447 $25,553 MidAmerican Energy-South System $75.34 $145 $911 $9,169 $28,160 Westar Energy-KGE $99.15 $168 $1,346 $15,873 $41,592 Westar Energy-KPL $99.15 $168 $1,346 $15,873 $41,592 Upper Peninsula Power Company $ $264 $1,945 $20,855 $61,936 We Energies (formerly Wisconsin Electric) $ $244 $2,076 $21,279 $60,218 Minnesota Power Company $81.60 $177 $1,428 $16,083 $51,158 Northern States Power Company (MN) $98.40 $181 $1,377 $17,180 $47,193 Otter Tail Power Company $87.92 $201 $1,417 $17,929 $50,279 MONTANA Montana-Dakota Utilities Company $63.41 $98 $1,064 $13,137 $38,781 NorthWestern Energy $90.76 $194 $1,544 $18,537 $53,211 NORTH Montana-Dakota Utilities Company $87.80 $153 $1,350 $16,623 $51,406 DAKOTA Otter Tail Power Company $78.81 $159 $1,277 $16,240 $45,343 Black Hills Power, Inc. d/b/a Black Hills Energy $94.29 $188 $1,054 $19,981 $45,760 MidAmerican Energy $64.58 $150 $806 $6,569 $16,250 SOUTH DAKOTA Montana-Dakota Utilities Company $90.19 $157 $1,264 $13,794 $43,895 NorthWestern Energy $96.29 $203 $1,557 $15,487 $38,696 Otter Tail Power Company $75.08 $152 $1,165 $14,818 $37,707 Madison Gas & Electric Company $ $233 $1,844 $21,802 $60,351 WISCONSIN Northern States Power Company (WI) $ $198 $1,468 $18,695 $50,832 UTAH Superior Water, Light & Power Company $80.02 $150 $1,147 $14,351 $47,081 We Energies (formerly Wisconsin Electric) $ $214 $1,733 $19,624 $54,900 Black Hills Power, Inc. d/b/a Black Hills Energy $97.06 $175 $1,613 $19,712 $58,270 WYOMING Cheyenne Light, Fuel & Power d/b/a Black Hills Energy $ $216 $1,825 $19,797 $53,676 Montana-Dakota Utilities Company $77.70 $105 $1,122 $12,308 $35,414 NORTHWESTERN ENERGY RANKING FOR UTILITIES SHOWN 20 of of of of 28 7 of 28 * Source: Edison Electric Institute Typical Bills and Average Rates Report (Winter) (January 2017) Monthly bundled costs for supply & delivery.

6 Rates Natural Gas Rates Customers see supply and delivery charges on their monthly bills. The NorthWestern Energy natural gas supply portion of the bill is subject to monthly cost adjustments in South Dakota and semi-annual adjustments in Nebraska. Current natural gas tariffs and natural gas service rules are available online at NorthWesternEnergy.com. The major pieces of a gas bill for a NorthWestern Energy small commercial natural gas customer using 200 therms a month and a residential customer using 100 therms a month are illustrated below. Note: Usage varies between winter and summer months, depending upon the heating and water heating needs. South Dakota NorthWestern Energy Commercial Customer Monthly Natural Gas Billing Components January 1, 2017 Using 200 Therms Per Month Nebraska NorthWestern Energy Commercial Customer Monthly Natural Gas Billing Components January 1, 2017 Using 200 Therms Per Month Purchased Gas Commodity 61% Energy Efficiency Program 0% Monthly Service Charge 9% Delivery Charge 30% JANUARY 2017 AVERAGE COST PER THERM NATURAL GAS SOLD TO RESIDENTIAL AND COMMERCIAL CUSTOMERS BY UTILITIES 1 Residential Commercial Colorado $0.69 $0.66 Illinois $0.75 $0.69 Iowa $0.77 $0.65 Kansas $0.86 $0.84 Michigan $0.75 $0.66 Minnesota $0.81 $0.71 Missouri $0.83 $0.72 Montana $0.67 $0.67 Nebraska $0.74 $0.63 NorthWestern Energy NE 2 $0.70 $0.56 North Dakota $0.59 $0.57 South Dakota $0.69 $0.58 NorthWestern Energy SD 2 $0.69 $0.55 Wisconsin $0.81 $0.71 Wyoming $0.75 $0.66 AVERAGE FOR REGION 3 $0.75 $0.67 TOTAL AVERAGE U.S. $0.94 $0.76 South Dakota - NorthWestern Energy Ranking (compared to states listed above) 4 of 15 1 of 15 Nebraska - NorthWestern Energy Ranking (compared to states listed above) 6 of 15 2 of 15 1 Source: - US Natural Gas Sector Report for average cost of gas sold in January Source: NorthWestern Energy internal documents 3 Average for State Region is average for the 13 states listed (excludes NorthWestern Energy in NE & SD)

7 Economic Development Economic vitality is crucial to the future of South Dakota and Nebraska, and for more than 100 years, NorthWestern Energy has held a strong commitment to the communities it serves. Community Works encompasses NorthWestern Energy s tradition of funding community activities, charitable efforts and economic development within its service territory. In 2015, NorthWestern Energy s Community Works programs provided about $2.1 million in funds for community sponsorships, charitable contributions and economic development organizations in Montana, South Dakota and Nebraska. NorthWestern Energy is committed to serving as a meaningful and dedicated contributor to the economic development process and see our role as energizing the economy in South Dakota and Nebraska. Our emphasis is on Building for the future of South Dakota and Nebraska, and the mission of our Economic Development team is to help retain existing jobs in South Dakota and Nebraska, promote business expansion and recruit new businesses to the state. Our economic development employees assist site selection consultants, economic development agencies, government agencies, existing businesses and potential new businesses. We are actively involved in economic development initiatives at the local, state, regional and national levels. We can answer questions about: utility rates power reliability availability of utility services energy efficiency programs utility operations Contacts for more information on any topic in this brochure or any other related subject are listed on the backside of this page. Information on our economic development activities is available online at: NorthWesternEnergy.com. As an economic development partner in our region, NorthWestern Energy is a sponsor of Advantage South Dakota, which is composed of economic developers in NorthWestern Energy s service territory. This initiative focuses on workforce attraction and recruitment of businesses in our South Dakota service territory. The website is intended to be a comprehensive resource for site selectors and new and existing businesses looking for information on locating their business in the region. For more detailed information on this region of South Dakota go to: 7

8 Contact Statewide Economic Development Pamela Bonrud Director - Government & Regulatory Affairs Office: (605) W 69th St Cell: (605) Sioux Falls, SD pam.bonrud@northwestern.com Paul Mantz Key Accounts & Economic Development Specialist Office: (605) W 69th St Sioux Falls, SD paul.mantz@northwestern.com Tom Glanzer Manager - Community Relations Office: (605) Market St Cell: (605) Huron, SD tom.glanzer@northwestern.com NEBRASKA OPERATIONS Grand Island, Kearney, & North Platte Jim Hartman Manager, District Operations Office: (308) W 3rd Cell: (308) Grand Island, NE james.hartman@northwestern.com SOUTH DAKOTA NORTH OPERATIONS Aberdeen & Huron Mike Williams Manager, Operations Office: (605) S Centennial St Cell: (605) Aberdeen, SD mike.williams@northwestern.com Brookings Michael Cameron Manager, District Operations O ffice: (605) nd Ave S Cell: (605) Brookings, SD michael.cameron@northwestern.com Awards & Achievements In early 2016, Cogent Reports recognized our company as a 2015 Residential Utility Customer Champion among electric and gas utility peers. Cogent conferred this recognition after conducting more than 50,000 residential utility customer interviews through its 2015 Utility Trusted Brand & Customer Engagement study. The award is a recognition of a job done well by all employees in creating very high customer engagement with our brand. The Sioux Empire United Way honored our Sioux Falls area employees with United Way Business of the Year for their outstanding contributions to United Way. All 40 employees participated in the annual fundraising campaign. The nonprofit also noted that among the 700 companies that participate in the campaign, NorthWestern Energy ranked second in per capita giving. The Montana Association of Health Care Purchasers (MAHCP), in conjunction with the Montana Worksite Health Promotion Coalition, honored NorthWestern Energy with a Gold Excellence in Worksite Health Promotion award in The MAHCP commended NorthWestern for its efforts in improving the lives of employees, their families and their communities. The Corporate Secretary magazine recognized NorthWestern as a finalist for Best Proxy Statement (Small and Mid-Cap) at the November 2016 Corporate Governance Awards ceremony in New York. NorthWestern Energy employees received an Engineering Excellence Award for their work an extensive transmission line upgrade project now serving customers in the Big Sky area. Our Jack Rabbit-Big Sky project, a 37-mile, $45 million upgrade to the electrical transmission line passes through the Gallatin Canyon, went into service in In 2016, the Occupational Health and Safety Administration (OSHA) honored our employees at the Madison/Hebgen hydroelectric facilities near Ennis and at Holter Dam north of Helena with re-approval as a Voluntary Protection Program (VPP) Star Facility. VPP recognizes worksites that demonstrate exemplary safety performance that goes beyond compliance with safety regulations. Such approvals can occur every five years through the completion of a rigorous multi-day audit by a team of OSHA VPP representatives. The Holter crew includes Mike Shuler, Rich Bonnes and Bill Schutter. Members of the Madison crew are Dan Collier, David Carney and Kurt Keller. SOUTH DAKOTA SOUTH OPERATIONS Mitchell & Yankton Brad Wenande Manager, Operations Office: (605) Cedar St Cell: (605) Yankton, SD brad.wenande@northwestern.com Form No /17