Generator — Summer 2023

PRESIDENT’S MESSAGE
2019 storm damage totals $9.8M
FEMA reimbursement stands at $4.5M to date
It has been more than four years since the 2019
mid-March storm affected the District and
the operations with the hydroelectric facilities.
I often get asked about where things stand
regarding repairs and reimbursement for the
repairs the District has made.
For the most part, all of the repairs regarding
the hydroelectric facilities have been completed.
There is still minor work to do on the canal
banks to ensure they are sloped and firmed up,
but for the most part, these repairs are completed.
The District is still waiting to bid out an
overflow structure along the canal near the
Headworks operation. This overflow structure
is meant to return water from the canal to the
Loup River when excess water enters the canal.
This was a requirement from the Federal Energy
Regulatory Commission (FERC).
The District has received all approvals on the
design concept from FERC and is just waiting
on approval from the Federal Emergency
Management Agency (FEMA) to bid the project
out and start the construction.
Regarding cost and reimbursement, to date the
District has spent approximately $9.8 million
on repairs from the 2019 storm. The District
has been reimbursed slightly more than $4.5
million from FEMA and insurance; however,
we expect to eventually be reimbursed for almost
all expenses associated with repairs from
this storm.
Sometimes it is frustrating at the amount of
time it takes to get reimbursed for project
costs from FEMA. The District has had to front
this money, all the while waiting for the reimbursement.
This has affected the District’s
cash flow, but luckily the District’s financial
position was strong before the 2019 storm, and
we have been able to weather the slow nature
of reimbursement by using cash reserves and
not issuing any new debt, all the while keeping
retail rates stable and cost effective.
Once all of the funds are reimbursed from
FEMA, the District’s cash position will be
much better and the financial flexibility will be
back to pre-2019 conditions.
Coming back from the 2019 mid-March storm
has taken a lot of resilience from all District
employees, and this has been a challenge.
Having to deal with facilities that are damaged
and making repairs while trying to keep the
facilities in operation takes a great deal of effort
and concentration. All District employees
should be proud of their performance during
this difficult period.
Storms like the one in 2019 are never fun to
deal with, but they are a way of life in our industry.
Wind and ice storms can damage poles
and lines, and District employees respond to
these quickly and efficiently. It is one of the
many reasons I am proud to work at Loup
Power District.
NEAL SUESS
President/CEO
SUMMER 2023 | 3