July 07, 2023
By Paul Hammel

Central Nebraska utilities say merger would be helpful to massive new fertilizer plant; water users differ

A center-pivot irrigation system that draws groundwater bolstered by canals operated by the Central Nebraska Public Power and Irrigation District. (Courtesy of the Central Nebraska Public Power and Irrigation District)

LINCOLN — Officials with two central Nebraska utilities districts said Friday that a proposed merger of the two is not essential for a planned $750 million liquid fertilizer plant but shows the economic potential of such a pairing.

“Project Meadowlark,” to be built near Gothenburg, would be a massive consumer of electricity — more than required for the City of Kearney.

But officials with the Central Nebraska Public Power and Irrigation District and Dawson Public Power said that while “there is great mutual benefit” to a merger, it is not required for the project to advance.

Renewable energy needed
A merged district, officials said, would be able to both generate and distribute clean renewable energy required by Project Meadowlark, providing about 10% of the facility’s energy use.

“This is an example of one of the many ways a merged district can serve central Nebraska,” officials with Central and Dawson said.
Late last month, founders of a local startup announced plans to use electricity instead of natural gas to produce an “eco-friendlier” fertilizer closer to farm customers.

Central General Manager Devin Brundage, in a press release Friday, said the two area utilities — Central and Dawson — worked with the City of Gothenburg and the Nebraska Public Power District to find the “carbon-free energy” required by the Meadowlark project.

Central produces hydropower at Kingsley Dam and other locations and sells it on the wholesale market, while Dawson markets power it buys on the wholesale market to local customers — such as the fertilizer plant.

Brundage said the four entities worked together to come up with “the best way” to provide the power needs of the proposed plant, but said a merger into the Platte River Public Power and Irrigation District wasn’t a requirement.

‘Wanted to work with merged district’
“Project Meadowlark didn’t need to work with (Platte River power); Project Meadowlark wanted to work with (a merged district),” Brundage said.

“Because of the value we can bring to their success, it translates to the success of everyone in the Platte River Public Power and Irrigation footprint,” he added.

The proposed merger, which was first discussed in 2020, is still pending after required state approval was rejected by the Nebraska Power Review Board in April on a technicality. The Central and Dawson boards have both approved the merger.

A group of irrigators formed to fight the merger and filed lawsuits against it, saying it will dilute the power of water users to continue to irrigate their crops.

Central’s board of directors has scheduled a special meeting July 17 to consider authorizing the filing of a petition to amend its charter. That is a necessary step to effectuate the merger.

On Thursday, a group of about 180 landowners and farmers served by Central released a survey, saying that 93% of water users served by Central Nebraska Public Power & Irrigation oppose the proposed merger.

“We do not understand why a merger is necessary to carry out the future of CNPPID,” said Central District Water Users President Dave Dahlgren.

Dahlgren, in a press release, said there had not been “enough transparency” about the proposed merger, and that “we don’t need to give away the company today.”