About CPEP

The Central Plains Energy Project is a governmental agency formed under the provisions of the Nebraska Interlocal Cooperation Act and the Nebraska non-profit corporations law. CPEP operates for the benefit of the participating municipalities.

CPEP was created in 2006 by the Metropolitan Utilities District of Omaha (MUD) and Cedar Falls Utilities (CFU). The City of Hastings, Neb., also became a member of CPEP in 2006.

CPEP is a joint action entity formed by an agreement executed under the Nebraska Interlocal Act. CPEP was formed to:

• Seek out and secure supplies of long-term, reliable natural gas at below market prices;
• Create economies of scale through aggregation of participant volumes;
• Adopt a “portfolio” strategy of natural gas purchasing to attain diversification of supply and suppliers;
• Minimize the costs and risks of natural gas acquisition to individual participants through joint action; and
• Form supportive long-term business relationships with similarly situated public entities.

CPEP is not a supplier of natural gas to non-participating public entities and has no provision for short-term sales of commodity via the marketplace. CPEP is a “buy and burn” organization for participants who wish to aggregate a portion of their natural gas needs with other like-minded public entities in order to achieve the goals set out above.

CPEP is an inclusive, rather than exclusive, organization. Because of this, there is no prohibition against CPEP members actively seeking other sources of supply, participating in other joint action entities or otherwise exercising their right to obtain a market advantage for the benefit of their constituencies.  Likewise, while CPEP will be there to provide certain necessary services if needed, there is no requirement that CPEP manage or otherwise administer the natural gas delivered to the individual participants, thereby ensuring that existing commodity management relationships need not be disturbed by participation in the Interlocal.

In February 2007, MUD and CFU completed CPEP’s first natural gas acquisition project – a reliable, firm, 20-year agreement through the issuance of $529 million of tax-exempt bonds. Over the term of the contract, the gas supply will serve a portion of MUD’s and CFU’s customer needs at a substantial discount to market prices.

Governance

CPEP is governed by a three-member board of directors. Each member has a representative in the board. The current members of the board of directors are:

James J. Knight
Metropolitan Utilities District, Omaha, Nebraska
Joe Bruns
Municipal Gas Utility of the City of Cedar Falls, Iowa
Donald R. Cox
City of Hastings, Nebraska, Hastings Utilities

The members of the board serve without compensation. The affairs of CPEP at all times are conducted in such a manner as to assure its status as a political subdivision within the meaning of federal tax laws.