Energy Options Analysis and Organization Development
Transcript Of Energy Options Analysis and Organization Development
PREPARED FOR:
THE WINNEBAGO TRIBE OF NEBRASKA
FINAL REPORT: Energy Options Analysis and Organization Development DE-FG36-05GO15172
PREPARED BY:
Dated: October 31, 2006
Table of Contents
A. Background ........................................................................................................1 B. Tribal Energy Vision........................................................................................... 2
1 Tribal Mission Statement:.......................................................................................... 2 2 Energy Vision: ........................................................................................................... 2 3 Strategic Energy Goals: ............................................................................................. 2 4 Near Term Energy Objectives: .................................................................................. 2 C. Project Objectives and Scope ............................................................................. 3 D. Primary Project Tasks and Activities ................................................................... 4 E. Deliverables....................................................................................................... 6 1 Energy Options Matrix............................................................................................ 6 2 Utility Services Matrix ............................................................................................. 6 3 Meeting Discussion Guides ..................................................................................... 6 4 Energy Manager’s Position Description................................................................. 6 5 Draft Utility Code .................................................................................................... 6 6 Project Summary ...................................................................................................... 6 F. Conclusions and Recommendations ................................................................... 7 G. Lessons Learned ................................................................................................. 8 H. Appendix .......................................................................................................... 9 1 Discussion Guides ..................................................................................................... 9 2 Energy Manager Position Description ................................................................... 9 3 Utility Code .............................................................................................................. 9
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A. Background
The Winnebago Indian Reservation is located in the northern half of Thurston County in northeastern Nebraska, and covers approximately 120,000 acres of cropland, woodland, and pasture. The County’s total population as of early 2004, inclusive of the Tribal members is 7,171. The closest metropolitan areas to the Reservation are Omaha, Nebraska, located 88 miles to the south, and Sioux City, Iowa, located 21 miles to the north. The Reservation borders the Missouri River, and the largest community on the Reservation is the Village of Winnebago.
The Winnebago Village is home to most Winnebago Tribal members and accounts for almost thirty percent of the Reservation's resident population. The Tribe and individual Tribal members own approximately one third of the Reservation acreage. Non-Tribal members, however, farm much of the Indian land. Important sectors of employment on the Reservation include health and education services, manufacturing, agriculture, public administration, and retail trade. The Winnebago Tribe’s Trust Lands and holdings in Iowa are approximately 1800 acres at present with plans to extend ownership as development occurs. The Winnevagas Casino and the Convenience Store/Gas Station complex play a significant part in the general economy both in employment and revenue for the Tribe. Future expansion plans include an 18-hole golf course, RV Park and Motel.
Relative to state and national statistics, unemployment is rather high and household and per capita incomes are low for Native Americans living on the Reservation. According to 1990 U.S. Bureau of Census figures, unemployment on the Reservation was 20.4 percent overall and 20.4 percent for the Native American population compared to 3.7 percent unemployment statewide and 5.6 percent nationally. It is estimated that 44 percent of the Native American population on the Reservation live at or below the poverty level. Tribal leaders expect that the Reservation’s growth should continue above 5 percent for the next ten years, as better economic opportunities continue to retain more of the Winnebago youth, and as older Tribal members return to the Reservation to retire.
As a sovereign Nation, the Tribe has demonstrated a long-standing commitment to the preservation of its resources and cultural heritage, and to the creation of opportunities for its members to thrive and become economically and socially self-sufficient as individuals, families and as a Tribal government. As part of this vision, the Winnebago believe that self-determination in managing energy matters is an integral part of economic development, and thus, to realization of this commitment. Further, the Tribe believes that the results of this proposed project will create local and regional environmental benefit, improve employment conditions, enhance economic development, contribute to selfsufficiency and human capacity, and benefit Tribal electricity users through lower bills and enhanced reliability.
The Winnebago Tribe formed a Tribal Energy Committee in September 2003, and has considered a variety of alternatives for utility formation. This Energy Options Analysis follows a Department of Interior funded resource assessment conducted by the Tribe in 2004, and was designed to expand upon previous work done by the Tribe in assessing energy resources, examining options for creating self-sufficiency in energy matters, and integrating energy management with the Tribe’s economic development goals. Other Winnebago efforts included a broad energy needs and resource assessment, conducted in 2004 and funded under a Department of Interior grant.
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B. Tribal Energy Vision
The Winnebago Tribal Energy Vision, Objectives and Goals are:
MISSION, VISION & GOALS
energy
1 Tribal Mission Statement:
The Winnebago Tribe of Nebraska, as a sovereign Nation, is committed pursuant to its Constitution, to maintain, improve and protect the Tribe; to preserve its resources and cultural heritage; to create opportunities for its members to thrive and become economically and socially self-sufficient as individuals, families and as a tribal government; and, thereby, promote the harmony of traditional values, beliefs which will ensure a positive course of action for future generations.
2 Energy Vision:
The Winnebago Tribe of Nebraska is committed to assure availability of safe, reliable, affordable, and clean energy to all its members; to further the Tribe’s goals for self-sufficiency and self-determination through empowerment in the Tribe’s energy interests; to ensure adequate supply and quality of energy to meet the Reservation’s present and future needs; and, thereby, contribute to the economy of the Winnebago Tribe of Nebraska, consistent with the Tribe’s dedication to improvement of health, welfare, and social and economic self-sufficiency of the Winnebago People.
3 Strategic Energy Goals: To meet the intent of, and realize, the Winnebago Energy Vision. To exercise Tribal sovereignty and rights of self-determination. To utilize energy management as a means to facilitate accomplishment of the Tribe’s goals for
improved health, welfare, self-sufficiency, and creation of enhanced quality of life for the Winnebago People.
To integrate energy management into the Tribe’s pursuit of economic and community development
goals.
To build a successful example of Tribal energy management that can be used as a model for other
Tribal entities.
4 Near Term Energy Objectives: To determine energy management alternatives that can further the Tribe’s goals for enhanced quality
of life through improved reliability, safety, and affordability of energy services for all Tribal members.
To identify and act upon energy management alternatives, and/or viable energy efficiency,
conservation, load management, and/or renewable generation projects that can facilitate economic and community development.
2
To identify and act upon opportunities for development of Tribal renewable energy resources that
meet Tribal needs, consistent with the Tribe’s mission to preserve resources, cultural heritage, traditional values, and beliefs.
To evaluate and act upon the formation of an appropriate Tribal Utility Entity, capable of advancing
the Tribe’s energy management objectives.
To act upon current trends and policy changes, which create opportunities for empowering the Tribe
in managing its energy affairs.
C. Project Objectives and Scope
The Winnebago Tribe of Nebraska’s overarching objective in conducting this study was to utilize its results to advance the Tribe’s near term energy management objectives. Winnebago’s growth trends and expansion plans have caused the Tribe to examine the vital role that energy plays in supporting growth and economic development overall. The Tribe views a need to play a more active role in assuring that safe, reliable, affordable, and clean energy is available to meet the Reservation’s present and future needs. In considering alternatives to meet these needs, the Tribe strives to maintain alignment between its growth goals, and cultural values of sustainable, environmental stewardship. With goals of improving reliability, safety, and lowering energy costs, the project originally intended to analyze energy management options as a whole, including conservation, energy efficiency, demand management, and generation development.
The study effort was carried out in several phases, with Tribal Council Secretary Louie Houghton acting as Project Director. The Winnebago Tribal Energy Committee acted as an advisory body and steering committee to Secretary Houghton. Red Mountain Energy Partners served as primary contractor to carry out the effort, in collaboration with, and under the supervision of the Tribal Project Director and Energy Committee.
The original scope was very broad, and included steps to:
• Analyze energy management options as a whole. With goals of improving reliability, safety, and lowering electricity costs in particular, options could include offsetting energy costs via – o Conservation, load management, and energy efficiency; o Self-supply through on-Reservation renewable generation; o Fuel volatility hedging through renewable generation; and o Power export from on-Reservation renewable generation.
• Analyze options for formation of a Tribal energy organization, which could best enable the Tribe to achieve its energy management goals. These options could include the creation of a Utility Authority, which oversees and/or regulates energy and/or non-energy (water, waste, telecommunications), reservation utility services, or a similar entity that assumes responsibility for the management and operations of these Reservation utility services.
• Validate the recommended options for execution, based on a Benefits Assessment. Factors for consideration could include utility service quality, local and regional environmental benefit, employment growth, economic and community development, and contribution to Tribal knowledge base, self-sufficiency, human and/or organizational capacity.
• Develop an Implementation Plan to carry out the ideal options discovered during the course of the study.
3
Early in the project, the Winnebago’s interest in a few specific alternatives emerged. The Tribe was less concerned about the options and the process steps necessary to exercise energy management measures, but instead opted to evaluate its options for formation of the appropriate utility, utility authority, or organizational entity that could best facilitate accomplishment of its energy-related goals. The Organization Development component of the study considered a set of utility formation alternatives, and the proposed entity’s oversight and regulatory alternatives, management, and operation alternatives. In the meantime, the Winnebago Tribe was notified that it had been awarded DOE funding to pursue its plans to conduct a Renewable Energy Feasibility Study, and opted to defer further discussion of all Renewable Energy-related activities to that effort. The Tribe submitted a revised Statement of Objectives on March 9, 2006, which was approved by the DOE Project Officer on April 14, 2006.
The following approach guided remaining project efforts, but focused primarily on the Utility Service Options aspect:
Options Analysis
Governance/Structure Analysis
Implementation Planning
EEnneerrggyy MMaannaaggeemmeennt t
OOppttiioonnss
Organizational Structure
Funding Analysis
UUttiilliittyy SSeerrvviiccee OOppttiioonnss
GGeenneerraattiioonn OOppttiioonnss
TTrraannssmmiissssiioonn// RROOWW OOppttiioonnss
Tribal Input/ Discussion
SSeelleecctteedd PPrrooggrraammss aanndd
DDeeffiinneedd RReessppoonnssiibbiilliittiieess
Governance Structure
Tribal Input/ Discussion
Skills Requirements
Infrastructure Analysis
Legal Issues
Other
The following section describes in more detail the project tasks and activities undertaken in the course of remaining effort.
D. Primary Project Tasks and Activities
During the project, the Tribe’s contractor, Red Mountain Energy Partners, participated in six onReservation working meetings with the Energy Committee and Council to presents its preliminary analysis and findings, to discuss preliminary conclusions, to seek direction from Council.
Onsite meetings were held on:
November 14 – 15, 2005 February 16, 2006 March 29, 2006 April 24, 2006 June 8, 2006 July 19, 2006
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The majority of Red Mountain’s work took place in preparation for these meetings, at which Council, the Committee and other interested parties discussed, explored, raised questions and issues, and set direction for the effort.
The primary topics reviewed during each discussion included:
November 14:
• Project objectives • Project approach • Proposed project schedule • The Winnebago Strategic Energy Vision • Discussion of fit with present TEC goals • Discussion of wind project opportunities (MAPS, DOI Economic Development, other funding
sources) • Information Needs Outline • “Go-to” resources
February 16:
• Energy Management Options • Utility Service Options • Power Generation and Delivery Options • Breakout Discussions to identify project contacts, resources, etc.
Following Red Mountain’s presentation and discussion of broad utility options on February 16, Council recognized that in order to be able to implement any of these options, greater emphasis should be placed on creating the energy organization that could focus on energy, facilitate the implementation process and move to identify the best organization direction for the energy organization. The March on-site working meeting focused on presentation and discussion of each of these options in detail, so that the Tribe could make decisions based upon cost analysis and comparisons of the alternatives, the appropriate organizational structure that will enable execution of the best energy options identified, and identification of a sustainable financial structure for the optimum Tribal energy entity
March 29:
• Organization Structure Options • Governance Options • Implementation Issues • Energy Manager Responsibilities • Energy Organization Recommendations
April:
• Utility Board Structure • Utility Board Responsibilities • Utility Board Funding Sources • Utility Board Implementation Plan
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June:
• Implementation Plan Update • Utility Code Discussion • Utility Providers discussion
July:
• Summary Book Contents • Implementation Plan Update • Outstanding Issues
E. Deliverables
The Tribe’s contractor analyzed both energy options and energy organizational alternatives suitable for the Tribe, presented findings to the Tribal Council, and made recommendations regarding each. Work products delivered to the Tribe included:
1 Energy Options Matrix
A matrix of energy management options applicable to the Tribe, which provided descriptions of particular conservation, efficiency, weatherization, and demand management alternatives. The matrix also provided insight about relative costs of the alternatives, cost/benefit efficacy, ease of implementation, resources for implementing, and observations about each.
2 Utility Services Matrix
A matrix of utility service options applicable to the Tribe, describing each of the four alternatives described above. The matrix also provided insight about key benefits of each option, required resources, costs and timeframe for implementation, funding sources and analysis, and key issues for consideration.
3 Meeting Discussion Guides
Discussion guides were prepared for each meeting with the Energy Committee and Council. Copies of the material for November, February, March, April, May and July are included in the Appendix.
4 Energy Manager’s Position Description
Red Mountain prepared a Position Description for the Energy Manager position, which was reviewed by the Tribal HR Department, and used by the Tribe to develop a position posting. The Energy Manager’s Position Description is included in the Appendix.
5 Draft Utility Code
A Utility Code was drafted, and revised, based on Council input. The Code was designed for Winnebago to use in establishing its Utility Board, and, once established, will provide guidance for the Board’s further development. The Draft Utility Code is included in the Appendix.
6 Project Summary
A project summary book was developed to include all key information, deliverables and utility provider data for the project. Books were provided to the Energy Committee and Council members,
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in order to ensure that each participant had a complete record of project content and discussion topics. Book sections included:
• Statement of Project Objectives • Final Report • Project Deliverables • Utility Code • Utility Providers Summary
Energy Infrastructure Nebraska Public Power District Burt County Public Power District Aquila Qwest Village of Winnebago Woodbury County Rural Electric Association Propane Services Other
• Energy Organizations • Nebraska Power Association • Long Range Power Supply Plan • Nebraska Power Association Privatization Study • Nebraska Power Review Board • Nebraska Rural Electric Association • Nebraska Energy Code • Low Income Weatherization Programs • Nebraska Energy Office • Nebraska Public Service Commission • Nebraska Electric Deregulation Activities
F. Conclusions and Recommendations
While Winnebago had no overwhelming energy issues or crisis, Council has had a continuing interest in energy and utility issues. Its formation of an Energy Committee, and interest in further development of an energy organization through which to manage its energy interests, led to its application for DOE funding to pursue these activities. With that in mind, Red Mountain identified multiple funding sources available to provide resources to establish, develop, organize, staff and run the Utility Board, and should be scheduled, planned and accessed
Council recognized multiple needs, including integrated infrastructure planning, particularly with respect to the intersection of Tribal vs. Village utility infrastructure. Utility service appears adequate at this time, although rural members have expressed concerns about timing of outage responses.
The preferred alternative is a Winnebago Utility Board, led by a full-time dedicated manager and established as a Tribal governmental entity with jurisdiction over telecom, pipeline utilities, electric utilities, gas utilities, water companies, heating utilities, and all other utilities that operate, maintain, or control any equipment or facilities within the Reservation. The Utility Board should consider establishing an entity to oversee water, wastewater, solid waste, electric, gas, and telecom/internet services provided on reservation.
By focusing efforts on forming a Winnebago Utility Board with the responsibility to oversee, and ultimately regulate utility services provided by non-Tribal entities, improvements in access, service and control of infrastructure will result in improved services, and equitable charges for utility services.
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Advocate for members re: customer service quality levels, including meter reading, billing, collection and disconnection policies; community programs, including low income assistance, energy efficiency or conservation; rate setting, including rate structure, levels, cost adjustments;
Given the multiple hats worn by Council members, it was apparent that a dedicated energy organization could provide focus to energy activities, efforts to access funding, and emphasis on improved Tribal member utility services. A full-time Energy Manager could provide coordination and focus to energy and utility activities, while both accessing and disseminating knowledge and communicating Tribal needs and requirements to Tribal, community and utility contacts.
Development of the Utility Code authorizes, or could ultimately authorize, extension of franchises to serve Tribal lands, including obligation to serve, non-discriminatory service; access authority; trespass penalties; right-of-way procedures, value and terms; condemnation procedures and environmental requirements. The Code also allows the Tribe to set policies re: tax collection issues, including prohibition of state taxes, or establishment of Tribal taxes; and could ultimately establish environmental approvals, and oversee right-of-way management, reporting, and, potentially, utility provider approvals.
While the draft Code authorizes the Tribe to consider utility system operations, including system maintenance and improvements, the Tribe has no current plans to operate electric, gas, water, or wastewater utilities.
G. Lessons Learned
The Winnebago Tribe has, over a long period of time, demonstrated fulfillment to its pledge to preserve its resources and cultural heritage, and to create opportunities for its members to thrive and become economically and socially self-sufficient as individuals, families and as a Tribal government. As part of this vision, the Winnebago believe that self-determination in managing energy matters is an integral part of economic development, and to realization of this commitment.
The array of energy options available is broad, and allows the Tribe to select those activities that best fit its energy strategies, goals and objectives. However, the array can also be overwhelming, for Tribes that have not their primary areas of focus, programs, and activities. An energy options analysis provides multiple opportunities for capacity building, depending on the level of involvement, interest, and participation of Tribal members, Council and Tribal leadership. However, identification of an energy champion to drive implementation forward is critical in allowing the Tribe to move from an energy vision to actual achievements.
While there is increasing awareness that Tribes can move beyond gaming activities in order to develop enterprise capacity and improve economic conditions for Tribal members, in reality, development of organization and human capacity is critical to accomplish economic improvement through sound energy management. While learning and knowledge transfer did occur throughout the study, working through the Energy Committee, and with Council, allowed for maximum knowledge transfer. It is essential for the Tribe to commit to further development of that human capacity to ensure that the Tribe can implement its plans, and communicate their intent.
Leveraging the opportunities to focus on energy, leveraging all resources available, and involving the maximum number of Tribal members, personnel and leadership in the effort will allow project benefits to extend beyond the Winnebago Tribal members and Reservation residents, and bring local and regional environmental benefits, and broader economic benefits.
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THE WINNEBAGO TRIBE OF NEBRASKA
FINAL REPORT: Energy Options Analysis and Organization Development DE-FG36-05GO15172
PREPARED BY:
Dated: October 31, 2006
Table of Contents
A. Background ........................................................................................................1 B. Tribal Energy Vision........................................................................................... 2
1 Tribal Mission Statement:.......................................................................................... 2 2 Energy Vision: ........................................................................................................... 2 3 Strategic Energy Goals: ............................................................................................. 2 4 Near Term Energy Objectives: .................................................................................. 2 C. Project Objectives and Scope ............................................................................. 3 D. Primary Project Tasks and Activities ................................................................... 4 E. Deliverables....................................................................................................... 6 1 Energy Options Matrix............................................................................................ 6 2 Utility Services Matrix ............................................................................................. 6 3 Meeting Discussion Guides ..................................................................................... 6 4 Energy Manager’s Position Description................................................................. 6 5 Draft Utility Code .................................................................................................... 6 6 Project Summary ...................................................................................................... 6 F. Conclusions and Recommendations ................................................................... 7 G. Lessons Learned ................................................................................................. 8 H. Appendix .......................................................................................................... 9 1 Discussion Guides ..................................................................................................... 9 2 Energy Manager Position Description ................................................................... 9 3 Utility Code .............................................................................................................. 9
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A. Background
The Winnebago Indian Reservation is located in the northern half of Thurston County in northeastern Nebraska, and covers approximately 120,000 acres of cropland, woodland, and pasture. The County’s total population as of early 2004, inclusive of the Tribal members is 7,171. The closest metropolitan areas to the Reservation are Omaha, Nebraska, located 88 miles to the south, and Sioux City, Iowa, located 21 miles to the north. The Reservation borders the Missouri River, and the largest community on the Reservation is the Village of Winnebago.
The Winnebago Village is home to most Winnebago Tribal members and accounts for almost thirty percent of the Reservation's resident population. The Tribe and individual Tribal members own approximately one third of the Reservation acreage. Non-Tribal members, however, farm much of the Indian land. Important sectors of employment on the Reservation include health and education services, manufacturing, agriculture, public administration, and retail trade. The Winnebago Tribe’s Trust Lands and holdings in Iowa are approximately 1800 acres at present with plans to extend ownership as development occurs. The Winnevagas Casino and the Convenience Store/Gas Station complex play a significant part in the general economy both in employment and revenue for the Tribe. Future expansion plans include an 18-hole golf course, RV Park and Motel.
Relative to state and national statistics, unemployment is rather high and household and per capita incomes are low for Native Americans living on the Reservation. According to 1990 U.S. Bureau of Census figures, unemployment on the Reservation was 20.4 percent overall and 20.4 percent for the Native American population compared to 3.7 percent unemployment statewide and 5.6 percent nationally. It is estimated that 44 percent of the Native American population on the Reservation live at or below the poverty level. Tribal leaders expect that the Reservation’s growth should continue above 5 percent for the next ten years, as better economic opportunities continue to retain more of the Winnebago youth, and as older Tribal members return to the Reservation to retire.
As a sovereign Nation, the Tribe has demonstrated a long-standing commitment to the preservation of its resources and cultural heritage, and to the creation of opportunities for its members to thrive and become economically and socially self-sufficient as individuals, families and as a Tribal government. As part of this vision, the Winnebago believe that self-determination in managing energy matters is an integral part of economic development, and thus, to realization of this commitment. Further, the Tribe believes that the results of this proposed project will create local and regional environmental benefit, improve employment conditions, enhance economic development, contribute to selfsufficiency and human capacity, and benefit Tribal electricity users through lower bills and enhanced reliability.
The Winnebago Tribe formed a Tribal Energy Committee in September 2003, and has considered a variety of alternatives for utility formation. This Energy Options Analysis follows a Department of Interior funded resource assessment conducted by the Tribe in 2004, and was designed to expand upon previous work done by the Tribe in assessing energy resources, examining options for creating self-sufficiency in energy matters, and integrating energy management with the Tribe’s economic development goals. Other Winnebago efforts included a broad energy needs and resource assessment, conducted in 2004 and funded under a Department of Interior grant.
1
B. Tribal Energy Vision
The Winnebago Tribal Energy Vision, Objectives and Goals are:
MISSION, VISION & GOALS
energy
1 Tribal Mission Statement:
The Winnebago Tribe of Nebraska, as a sovereign Nation, is committed pursuant to its Constitution, to maintain, improve and protect the Tribe; to preserve its resources and cultural heritage; to create opportunities for its members to thrive and become economically and socially self-sufficient as individuals, families and as a tribal government; and, thereby, promote the harmony of traditional values, beliefs which will ensure a positive course of action for future generations.
2 Energy Vision:
The Winnebago Tribe of Nebraska is committed to assure availability of safe, reliable, affordable, and clean energy to all its members; to further the Tribe’s goals for self-sufficiency and self-determination through empowerment in the Tribe’s energy interests; to ensure adequate supply and quality of energy to meet the Reservation’s present and future needs; and, thereby, contribute to the economy of the Winnebago Tribe of Nebraska, consistent with the Tribe’s dedication to improvement of health, welfare, and social and economic self-sufficiency of the Winnebago People.
3 Strategic Energy Goals: To meet the intent of, and realize, the Winnebago Energy Vision. To exercise Tribal sovereignty and rights of self-determination. To utilize energy management as a means to facilitate accomplishment of the Tribe’s goals for
improved health, welfare, self-sufficiency, and creation of enhanced quality of life for the Winnebago People.
To integrate energy management into the Tribe’s pursuit of economic and community development
goals.
To build a successful example of Tribal energy management that can be used as a model for other
Tribal entities.
4 Near Term Energy Objectives: To determine energy management alternatives that can further the Tribe’s goals for enhanced quality
of life through improved reliability, safety, and affordability of energy services for all Tribal members.
To identify and act upon energy management alternatives, and/or viable energy efficiency,
conservation, load management, and/or renewable generation projects that can facilitate economic and community development.
2
To identify and act upon opportunities for development of Tribal renewable energy resources that
meet Tribal needs, consistent with the Tribe’s mission to preserve resources, cultural heritage, traditional values, and beliefs.
To evaluate and act upon the formation of an appropriate Tribal Utility Entity, capable of advancing
the Tribe’s energy management objectives.
To act upon current trends and policy changes, which create opportunities for empowering the Tribe
in managing its energy affairs.
C. Project Objectives and Scope
The Winnebago Tribe of Nebraska’s overarching objective in conducting this study was to utilize its results to advance the Tribe’s near term energy management objectives. Winnebago’s growth trends and expansion plans have caused the Tribe to examine the vital role that energy plays in supporting growth and economic development overall. The Tribe views a need to play a more active role in assuring that safe, reliable, affordable, and clean energy is available to meet the Reservation’s present and future needs. In considering alternatives to meet these needs, the Tribe strives to maintain alignment between its growth goals, and cultural values of sustainable, environmental stewardship. With goals of improving reliability, safety, and lowering energy costs, the project originally intended to analyze energy management options as a whole, including conservation, energy efficiency, demand management, and generation development.
The study effort was carried out in several phases, with Tribal Council Secretary Louie Houghton acting as Project Director. The Winnebago Tribal Energy Committee acted as an advisory body and steering committee to Secretary Houghton. Red Mountain Energy Partners served as primary contractor to carry out the effort, in collaboration with, and under the supervision of the Tribal Project Director and Energy Committee.
The original scope was very broad, and included steps to:
• Analyze energy management options as a whole. With goals of improving reliability, safety, and lowering electricity costs in particular, options could include offsetting energy costs via – o Conservation, load management, and energy efficiency; o Self-supply through on-Reservation renewable generation; o Fuel volatility hedging through renewable generation; and o Power export from on-Reservation renewable generation.
• Analyze options for formation of a Tribal energy organization, which could best enable the Tribe to achieve its energy management goals. These options could include the creation of a Utility Authority, which oversees and/or regulates energy and/or non-energy (water, waste, telecommunications), reservation utility services, or a similar entity that assumes responsibility for the management and operations of these Reservation utility services.
• Validate the recommended options for execution, based on a Benefits Assessment. Factors for consideration could include utility service quality, local and regional environmental benefit, employment growth, economic and community development, and contribution to Tribal knowledge base, self-sufficiency, human and/or organizational capacity.
• Develop an Implementation Plan to carry out the ideal options discovered during the course of the study.
3
Early in the project, the Winnebago’s interest in a few specific alternatives emerged. The Tribe was less concerned about the options and the process steps necessary to exercise energy management measures, but instead opted to evaluate its options for formation of the appropriate utility, utility authority, or organizational entity that could best facilitate accomplishment of its energy-related goals. The Organization Development component of the study considered a set of utility formation alternatives, and the proposed entity’s oversight and regulatory alternatives, management, and operation alternatives. In the meantime, the Winnebago Tribe was notified that it had been awarded DOE funding to pursue its plans to conduct a Renewable Energy Feasibility Study, and opted to defer further discussion of all Renewable Energy-related activities to that effort. The Tribe submitted a revised Statement of Objectives on March 9, 2006, which was approved by the DOE Project Officer on April 14, 2006.
The following approach guided remaining project efforts, but focused primarily on the Utility Service Options aspect:
Options Analysis
Governance/Structure Analysis
Implementation Planning
EEnneerrggyy MMaannaaggeemmeennt t
OOppttiioonnss
Organizational Structure
Funding Analysis
UUttiilliittyy SSeerrvviiccee OOppttiioonnss
GGeenneerraattiioonn OOppttiioonnss
TTrraannssmmiissssiioonn// RROOWW OOppttiioonnss
Tribal Input/ Discussion
SSeelleecctteedd PPrrooggrraammss aanndd
DDeeffiinneedd RReessppoonnssiibbiilliittiieess
Governance Structure
Tribal Input/ Discussion
Skills Requirements
Infrastructure Analysis
Legal Issues
Other
The following section describes in more detail the project tasks and activities undertaken in the course of remaining effort.
D. Primary Project Tasks and Activities
During the project, the Tribe’s contractor, Red Mountain Energy Partners, participated in six onReservation working meetings with the Energy Committee and Council to presents its preliminary analysis and findings, to discuss preliminary conclusions, to seek direction from Council.
Onsite meetings were held on:
November 14 – 15, 2005 February 16, 2006 March 29, 2006 April 24, 2006 June 8, 2006 July 19, 2006
4
The majority of Red Mountain’s work took place in preparation for these meetings, at which Council, the Committee and other interested parties discussed, explored, raised questions and issues, and set direction for the effort.
The primary topics reviewed during each discussion included:
November 14:
• Project objectives • Project approach • Proposed project schedule • The Winnebago Strategic Energy Vision • Discussion of fit with present TEC goals • Discussion of wind project opportunities (MAPS, DOI Economic Development, other funding
sources) • Information Needs Outline • “Go-to” resources
February 16:
• Energy Management Options • Utility Service Options • Power Generation and Delivery Options • Breakout Discussions to identify project contacts, resources, etc.
Following Red Mountain’s presentation and discussion of broad utility options on February 16, Council recognized that in order to be able to implement any of these options, greater emphasis should be placed on creating the energy organization that could focus on energy, facilitate the implementation process and move to identify the best organization direction for the energy organization. The March on-site working meeting focused on presentation and discussion of each of these options in detail, so that the Tribe could make decisions based upon cost analysis and comparisons of the alternatives, the appropriate organizational structure that will enable execution of the best energy options identified, and identification of a sustainable financial structure for the optimum Tribal energy entity
March 29:
• Organization Structure Options • Governance Options • Implementation Issues • Energy Manager Responsibilities • Energy Organization Recommendations
April:
• Utility Board Structure • Utility Board Responsibilities • Utility Board Funding Sources • Utility Board Implementation Plan
5
June:
• Implementation Plan Update • Utility Code Discussion • Utility Providers discussion
July:
• Summary Book Contents • Implementation Plan Update • Outstanding Issues
E. Deliverables
The Tribe’s contractor analyzed both energy options and energy organizational alternatives suitable for the Tribe, presented findings to the Tribal Council, and made recommendations regarding each. Work products delivered to the Tribe included:
1 Energy Options Matrix
A matrix of energy management options applicable to the Tribe, which provided descriptions of particular conservation, efficiency, weatherization, and demand management alternatives. The matrix also provided insight about relative costs of the alternatives, cost/benefit efficacy, ease of implementation, resources for implementing, and observations about each.
2 Utility Services Matrix
A matrix of utility service options applicable to the Tribe, describing each of the four alternatives described above. The matrix also provided insight about key benefits of each option, required resources, costs and timeframe for implementation, funding sources and analysis, and key issues for consideration.
3 Meeting Discussion Guides
Discussion guides were prepared for each meeting with the Energy Committee and Council. Copies of the material for November, February, March, April, May and July are included in the Appendix.
4 Energy Manager’s Position Description
Red Mountain prepared a Position Description for the Energy Manager position, which was reviewed by the Tribal HR Department, and used by the Tribe to develop a position posting. The Energy Manager’s Position Description is included in the Appendix.
5 Draft Utility Code
A Utility Code was drafted, and revised, based on Council input. The Code was designed for Winnebago to use in establishing its Utility Board, and, once established, will provide guidance for the Board’s further development. The Draft Utility Code is included in the Appendix.
6 Project Summary
A project summary book was developed to include all key information, deliverables and utility provider data for the project. Books were provided to the Energy Committee and Council members,
6
in order to ensure that each participant had a complete record of project content and discussion topics. Book sections included:
• Statement of Project Objectives • Final Report • Project Deliverables • Utility Code • Utility Providers Summary
Energy Infrastructure Nebraska Public Power District Burt County Public Power District Aquila Qwest Village of Winnebago Woodbury County Rural Electric Association Propane Services Other
• Energy Organizations • Nebraska Power Association • Long Range Power Supply Plan • Nebraska Power Association Privatization Study • Nebraska Power Review Board • Nebraska Rural Electric Association • Nebraska Energy Code • Low Income Weatherization Programs • Nebraska Energy Office • Nebraska Public Service Commission • Nebraska Electric Deregulation Activities
F. Conclusions and Recommendations
While Winnebago had no overwhelming energy issues or crisis, Council has had a continuing interest in energy and utility issues. Its formation of an Energy Committee, and interest in further development of an energy organization through which to manage its energy interests, led to its application for DOE funding to pursue these activities. With that in mind, Red Mountain identified multiple funding sources available to provide resources to establish, develop, organize, staff and run the Utility Board, and should be scheduled, planned and accessed
Council recognized multiple needs, including integrated infrastructure planning, particularly with respect to the intersection of Tribal vs. Village utility infrastructure. Utility service appears adequate at this time, although rural members have expressed concerns about timing of outage responses.
The preferred alternative is a Winnebago Utility Board, led by a full-time dedicated manager and established as a Tribal governmental entity with jurisdiction over telecom, pipeline utilities, electric utilities, gas utilities, water companies, heating utilities, and all other utilities that operate, maintain, or control any equipment or facilities within the Reservation. The Utility Board should consider establishing an entity to oversee water, wastewater, solid waste, electric, gas, and telecom/internet services provided on reservation.
By focusing efforts on forming a Winnebago Utility Board with the responsibility to oversee, and ultimately regulate utility services provided by non-Tribal entities, improvements in access, service and control of infrastructure will result in improved services, and equitable charges for utility services.
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Advocate for members re: customer service quality levels, including meter reading, billing, collection and disconnection policies; community programs, including low income assistance, energy efficiency or conservation; rate setting, including rate structure, levels, cost adjustments;
Given the multiple hats worn by Council members, it was apparent that a dedicated energy organization could provide focus to energy activities, efforts to access funding, and emphasis on improved Tribal member utility services. A full-time Energy Manager could provide coordination and focus to energy and utility activities, while both accessing and disseminating knowledge and communicating Tribal needs and requirements to Tribal, community and utility contacts.
Development of the Utility Code authorizes, or could ultimately authorize, extension of franchises to serve Tribal lands, including obligation to serve, non-discriminatory service; access authority; trespass penalties; right-of-way procedures, value and terms; condemnation procedures and environmental requirements. The Code also allows the Tribe to set policies re: tax collection issues, including prohibition of state taxes, or establishment of Tribal taxes; and could ultimately establish environmental approvals, and oversee right-of-way management, reporting, and, potentially, utility provider approvals.
While the draft Code authorizes the Tribe to consider utility system operations, including system maintenance and improvements, the Tribe has no current plans to operate electric, gas, water, or wastewater utilities.
G. Lessons Learned
The Winnebago Tribe has, over a long period of time, demonstrated fulfillment to its pledge to preserve its resources and cultural heritage, and to create opportunities for its members to thrive and become economically and socially self-sufficient as individuals, families and as a Tribal government. As part of this vision, the Winnebago believe that self-determination in managing energy matters is an integral part of economic development, and to realization of this commitment.
The array of energy options available is broad, and allows the Tribe to select those activities that best fit its energy strategies, goals and objectives. However, the array can also be overwhelming, for Tribes that have not their primary areas of focus, programs, and activities. An energy options analysis provides multiple opportunities for capacity building, depending on the level of involvement, interest, and participation of Tribal members, Council and Tribal leadership. However, identification of an energy champion to drive implementation forward is critical in allowing the Tribe to move from an energy vision to actual achievements.
While there is increasing awareness that Tribes can move beyond gaming activities in order to develop enterprise capacity and improve economic conditions for Tribal members, in reality, development of organization and human capacity is critical to accomplish economic improvement through sound energy management. While learning and knowledge transfer did occur throughout the study, working through the Energy Committee, and with Council, allowed for maximum knowledge transfer. It is essential for the Tribe to commit to further development of that human capacity to ensure that the Tribe can implement its plans, and communicate their intent.
Leveraging the opportunities to focus on energy, leveraging all resources available, and involving the maximum number of Tribal members, personnel and leadership in the effort will allow project benefits to extend beyond the Winnebago Tribal members and Reservation residents, and bring local and regional environmental benefits, and broader economic benefits.
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