As the state’s sole public power provider, Omaha Public Power District (OPPD) bears the weight of ensuring reliable, affordable, and sustainable energy for a vast and growing community. The challenge is monumental: balancing the ever-increasing demands of modern life with the imperative to modernize aging infrastructure and embrace a sustainable energy future.
At Omaha Magazine, we know you want to stay updated about the forces shaping our community's energy landscape. On a recent episode of our Omaha Magazine Podcast, we talked to Javier Fernandez, President and CEO of Omaha Public Power District. We discussed topics from the fundamental principles of ensuring reliable power delivery to the rationale behind necessary utility rate increases, the integration of renewable energy sources, and the potential of smart technologies.
Javier Fernandez's Journey to OPPD
Javier Fernandez’s journey to the helm of OPPD begins in the vibrant and dynamic metropolis of Mexico City, where he cultivated a strong foundation in the disciplines of finance and economics. After migrating to the United States, he furthered his education and spent several formative years as an investment banker, honing his analytical and strategic skills.
His transition to the electric utility industry with the Bonneville Power Administration provided him with invaluable experience in the energy sector, laying the groundwork for his future leadership role. His move to Omaha in 2017 was driven by a desire to provide his family a “clean, safe place” to call home.
He recognized OPPD as an “amazing organization” with “great people serving a very honorable purpose.” He also readily acknowledged the unique structure of Nebraska public power, a system that prioritizes the needs of the community above all else.
The Unique Structure of Nebraska's Public Power
Nebraska’s public power system, a pioneering initiative championed by Senator Norris, stands as a unique and exemplary model in the national energy landscape. “Nebraska is the only state in the nation where 100% of the electric utility providers are public power,” Fernandez explained.
This structure prioritizes customer-owners above all. OPPD’s governance structure, featuring an elected board of directors, ensures that the voices of the community are heard and represented. “We serve almost 900,000 people,” Fernandez stated, underscoring the vast scope of OPPD’s operations and its profound impact on the region.
Addressing Power Outages and Storm Resilience
The severe and unprecedented storms of 2023, particularly the devastating July storm that left over 50% of OPPD’s customers without power, served as a stark reminder of the challenges posed by extreme weather events.
“When these things happen, you never want these storms to happen. But when they do, you just step back and you watch the organization do what they do best,” Fernandez reflected.
OPPD’s response was a testament to its preparedness, collaborative spirit, and unwavering commitment to its customers. Deploying 1,500 workers and calling for mutual aid from other utilities, they restored power efficiently. “It was a truly a team effort,” Fernandez noted. Addressing OPPD power outages requires constant vigilance and a collaborative approach.
The Evolution of OPPD's Power Generation
OPPD is navigating a significant and transformative transition in its energy generation portfolio. Historically reliant on coal and nuclear power, the district is now embracing natural gas and renewable energy sources.
“The climate has changed. Period. So…how do we invest in an infrastructure, in a system that can respond really well,” Fernandez stated, addressing the impacts of climate change and energy.
The shift towards liquid natural gas and the increasing adoption of solar and wind power are driven by both environmental concerns and the need for diverse energy sources. “We need solar because solar generation does not require water to run,” Fernandez explained, highlighting its importance in light of recent river freezes.
Utility Rate Increases and Infrastructure Investment
Omaha’s rapid growth has led to an unprecedented increase in energy demand, necessitating significant infrastructure investments and recent utility rate increases.
"Everybody pays for their own, uh, their own piece. We have a very disciplined, rigorous process where we calculate cost causation, who is causing the cost," Fernandez assured us, addressing concerns about fairness and transparency in cost allocation between residential and commercial customers.
He emphasized the importance of ensuring that each customer segment bears its fair share of the costs associated with the increased demand. "We need to invest in infrastructure that can support the growth we're seeing," he stated, highlighting the long-term benefits of these investments.
Fernandez also explained that the impact of extreme weather events, such as the severe storms of 2023, has necessitated additional investments in grid hardening and resilience, adding to the overall cost of providing reliable power. But despite the increase, OPPD remains competitive, with rates significantly below national and regional averages.
Embracing Renewable Energy and Solar Shares
OPPD is empowering customers to participate in sustainable energy initiatives through its solar energy shares program. “It’s a way for people who are committed to improving our environment,” Fernandez explained.
This program allows individuals and businesses to subscribe to a portion of OPPD’s solar energy generation, even if they cannot install solar panels on their own properties. It expands access to renewable energy and fosters a sense of community ownership in the district's sustainability efforts.
The district’s commitment to net-zero carbon goals is evident in its strategic investments in solar and wind energy. These investments are designed to diversify OPPD’s energy portfolio, reduce its reliance on fossil fuels, and ultimately provide cleaner, more sustainable energy for the entire region.
Future Innovations and Smart Meter Technology
OPPD is actively deploying advanced smart meters across its service territory, a crucial step in modernizing the grid and empowering customers with greater control over their energy usage. These smart meters enable real-time, two-way communication between OPPD and its customers, facilitating accurate billing, remote meter readings, and the implementation of dynamic pricing programs.
Beyond basic functionalities, these meters provide granular data on energy consumption, allowing customers to identify areas for potential savings and make informed decisions about their energy habits. The data also allows OPPD to optimize grid operations, detect outages faster and improve overall system reliability.
Additionally, the smart thermostat program already allows for voluntary energy conservation during peak times, promoting energy efficiency and reducing peak demand. "We're building a more intelligent and responsive grid," Fernandez emphasized. The smart meter data will allow for more sophisticated demand response programs, further stabilizing the grid and allowing for better integration of intermittent renewable energy sources.
The Future of Public Power in Omaha
From navigating the challenges of extreme weather to embracing the promise of renewable energy and smart technologies, OPPD is clearly committed to serving its customer-owners. The district's focus on reliability, affordability, and sustainability, coupled with its unique public power structure, positions it as a vital asset to the Omaha community and the broader region.
At Omaha Magazine, we’re dedicated to bringing you in-depth conversations with the leaders shaping our community. Be sure to check out the rest of our Omaha Magazine Podcast for more insight into what’s going on in our local community!
