A leader in today’s economic world, Northern States Power (NSP) is recognized for its outstanding performance in both regulated and nonregulated operations. Its regulated operation serves over two million electric and gas customers in Minnesota, Wisconsin, North Dakota, South Dakota, Arizona, and Michigan (NSP – Investor’s Overview 1). Its head offices are located in Minneapolis, Minnesota, and the Chairman, President and Chief Executive Officer (CEO) is Mr. James J. Howard III (Howard 1).
Its Viking Gas Transmission Company Subsidiary owns and operates a 500-mile natural gas pipeline (NSP – Investor’s Overview 1). Northern States Power is one of the nation’s leading energy companies with competitive rates, responsive service, and dependable and reliable energy. A relationship with NSP began’s when they sign up for services with them; moreover, when you choose to live in a certain area. Some of the facts about NSP are services/people, profit, rates, and sources of power, standings, first aid/safety, Y2K, merger, and about how they help within the community.
In North Dakota, NSP provides service to more than 80,000 electric customers and 30,000 gas customers in Fargo, Grand Forks, Minot, and many surrounding communities (NSP – Northern Dakota 1). They have served in these communities for over 80 years (Northern States Power Energy Wise 2). “By powering the world, NSP brings energy to (Howard 6):” ? The international markets where we do business ? The communities close to home where we contribute time and money ? To customers, who have ever-increasing energy needs and choices ? To employees, who make the energy work ?
And finally, to youthe shareholderswho have placed trust in them The 24th straight year in a row to mark growth for NSP was 1998. Northern States Power’s common stocks are traded on three different exchanges: New York Stock, Chicago Stock, and Pacific Stock. Its ticker tape symbol is NSP. Newspaper stock tables list NSP Company as NoStPw, NoStPwr, or NSPw (NSP – Investor’s Overview’s 2). Northern States Power and its subsidiaries reported earning of $52. 3 million or 34 cents a share, for the first quarter of 1999. Operating revenue for the quarter was up 6 percent to $743. 2 million.
Warmer weather, increased maintenance, and Y2K computer work is the cause of the decreased earning (NSP First-quarter). “Advantages to being a registered shareholder are (NSP – Investor’s overview 2):” ? Dividend checks are sent directly to you, deposited in the back account you designate, or aybe reinvested in the company as you choose ? You may purchase additional stock (through dividend reinvestment and optional investment plans) with little or no fees ? You may deposit your share certificates with the company for safekeeping if you sign up for the Dividend Reinvestment Program ?
Shareholder company mailings will be sent directly to your address “Electricity is an extremely price-volatile commodity. The price of on-peak electricity on 15 April 1998 ranged from $20 per megawatt-hour to $38 per megawatt-hour. Competitive prices serve us well today. But becomes an even greater dvantage in a competitive market (Howard 3). ” In trying to compare different electrical Service Companies, I talked with my Uncle, Edward Schiele, from Karlsruhe, North Dakota. I asked him what his monthly electric bill averages and he said it is between $100 to $115 a month during the winter months.
Verendrye Electric Cooperative out of Velva, North Dakota, services Karlsruhe with its electrical needs. Karlsruhe is a rural community of around 150-200 people (Schiele, Edward). Our families electrical service needs are serviced by NSP. My Mother, Virginia Schiele, said our last electrical bill was only $41. 49. That is a big difference from my uncle’s bill. Additionally, my mother told me that when we lived in Holiday Village Trailer Court we were serviced by Verendrye Electric and the bill averaged around $80 a month in the winter (Schiele, Virginia).
Across North Dakota they’re many different electrical companies. Electricity from other utility companies can cost up to 63 percent more than from Northern States Power. In checking nine different companies, they ranged from $72. 50 a month with Cass County Electric to Northern States Power at $49. 68. Northern States Power has the lowest electric rates for Northern Dakota customers. If you’re looking for the best value, it definitely is Northern States Power (Northern States Power Energy Wise 2). There is always a challenge on energy pricing. In recent years, many businesses have explored co-generation.
That is harnessing energy from the excess heat produced in manufacturing (Brauer 2). Northern States Power is investing in renewable sources of power. It is studying the use of solar, wind, and biomass energy sources and how they fit into our energizes future needs (Northern States Power Company Home 2). During the 7th Century, the ancient Persians were believed to have built the first indmill. The earlier windmills use driving pumps or grindstones to produce power. Today’s windmills use blades and were once a common sight on American farms (NSP Renew Wind 1).
Wind turbines, the modern counterpart of windmills, drive electric generators. A turbine, installed on top of a tower, has three blades with a rotor diameter of 160 feet. Towers average 100 to 175 feet tall (NSP Renew Wind 1). A turbine operates under the same principal as an airplane wings. Lift is the force that pulls the blades coveting the linear motion into rotational motion that drives an electric generator. It takes 67 to 200 ind turbines to generate 100 megawatts of electricity (NSP Renew Wind 2). As with all sources of generation, NSP seeks to minimize the advantage and minimize the disadvantages.
They choose companies who can provide the latest, most cost-effective technology and select sites identified through extensive research as the windiest area. Additionally, sites are chosen in close proximity to transmission lines (NSP Renew Wind 2). Using solar power goes back to 1839 when French scientist Edmond Becquerel first discovered on that on certain material light could create an electric charge. However, nothing became f it until the 1960s when the United States space program began the use of silicon-based photovoltaic cells to power some satellite applications (NSP Solar 1).
Usually made of silicon, solar photovoltaic panels contain cells that convert sunlight directly into electricity. These systems can operate independently or be connected to utility electrical grids already in use. Conducting research since 1982, the use of grid-connected photovoltaics systems are what interests NSP (NSP Solar 2). Biomass is the use of any organic material that can be used as fuel. Examples include agriculture, crops, trees, grasses, seed hulls, animal waste, andfill gas, and wood wastes from forests, orchards, mills, and construction. People have used these products to heat homes for thousands of years.
Today, some use biomass in combination with other fuels to generate electricity (NSP Biomass 1). Northern States Power uses wood waste to produce electricity at one plant and at another it uses landfill methane gas. However, extreme care must be taken to use biomass in an environmentally responsible way (NSP Biomass 1). Northern States Power has strong traditional values for the protection for the environment. They believe in protecting the delicate balance between the eed for reliable energy and minimizing the impact for energy production and distribution.
Among the utility companies, NSP is a leader in a variety of initiatives to preserve our natural resources, use renewable energy sources, and minimize it’s impact on the environment (NSP Environmental 1). How does North and South Dakota stand in items rates by NSP, lets take a look. All states serviced by NSP had zero lost workdays in January 1999 and five lost workdays were noted in June 1998, the Dakota’s showing none. The Dakota’s have zero incidents noted in January 1999 for safety; but in June 1998 they had two on the records.
Other states reported a total of 56 lost days up till June 1998 and six in January 1999 (Delivery 1). For Projects Completed-on-Time, the Dakota’s have no rating. All other states have a completion rate of 93 percent, the goal is 80 percent. To me, this shows NSP is dedicated to quality service to their customers (Delivery 1). Projects cost commissions are hard to estimate or rate; but, to show you expenditures here are a few shockers. Remember that all projected costs are in the millions. Fargo shows $83, Grand Forks shows $102, Minot shows $87, and Sioux Falls shows $79. Actual costs were $87 million (Delivery 1).
Northern States Power has budgeted $24 million for checking its equipment to make sure there are no problems when the year 2000 arrives. Dealing with electrical outages daily, NSP expects only a minimal disruption of service to its customers (NSP First-quarter B6). They have already confirmed the readiness of 70 percent of the equipment and systems. With 80 percent of its systems pre-dating computers, there systems can be operated manually. In one case, a sensing device was placed into a millennium changeover, all it took was an extra 1. 5 of a second to operate, a time that will not impair the system functions (NSP News Release 1 & 2).