Lincoln Electric System proposes $180 million for turbines, seeks 4% midyear rate increase

Lincoln Electric System (LES) officials told the Lincoln City Council on June 9 that new reliability rules from the Southwest Power Pool (SPP) have reduced the accredited capacity of LES’s existing resources and that the utility plans to add two combustion turbines at its Terry Bundy generating station and enter into other contracts to avoid a projected resource adequacy shortfall.

LES Vice President of Power Supply Jason Fortic and Chief Financial Officer Emily Koenig described a roughly $180 million project to add two combustion turbines and said a 4% midyear rate increase, effective July 1, would produce about $6.5 million in 2025 revenue. LES Chief Executive Emeka Anya and staff said the turbines are planned to be in service by about 2030 and that the utility also recently began a contract for hydroelectric supply from the Jeffrey Hydroelectric Plant that took effect April 1.

The proposal came after SPP reworked how it accredits generating resources following Winter Storm Uri. Fortic said SPP’s new processes — including effective load‑carrying capability (ELCC) for non‑dispatchable resources and performance‑based accreditation for dispatchable units —…