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Lancaster council hears South Central Power presentation on proposed franchise, no vote taken
Summary
South Central Power Company presented a proposed franchise agreement to Lancaster City Council on Sept. 15, arguing a franchise would secure long‑term investments; council debated whether to set a 5 MW, 15 MW or 25 MW threshold for allowing alternate providers and took no vote, postponing action until SCP can return.
South Central Power Company (SCP) officials on Sept. 15 told the Lancaster City Council they seek a franchise agreement to provide certainty to lenders and enable long‑term investments as the city grows.
Mayor McDaniel introduced SCP representative Rick Lemonds, who described SCP as a member‑owned electric cooperative that has served Lancaster for 89 years. According to presentation materials cited at the meeting, SCP reported about $381 million in revenue last year, nearly $1 billion in assets and $10 million returned to members in patronage capital. Lemonds said a franchise would help the cooperative plan and recover the cost of infrastructure projects and help avoid ‘‘stranded assets’’ if competing utilities serve pockets of new development.
The core dispute before council was the size threshold that should allow an alternative provider to serve inside SCP’s certified territory. The city administration and councilmembers described a proposed 5 megawatt (MW) threshold as a compromise intended to preserve tools for economic development; SCP said a 25 MW threshold better reflects the scale of investments that should trigger competitive access. Council members discussed a possible 15 MW middle ground, and Mr. Lemonds said he would present any compromise to the SCP board.
Law Director Hall told council the city does not favor one provider and said the administration’s 5 MW compromise reflected input from economic development partners and the practical sizes of most local projects. Several councilmembers pressed for clarity on the scale of expected development; port authority staff and the law director cited roughly 333 houses at the Powers Run site and about 200 houses at Rainbow/SR 33 — an administration estimate of about 500 new residential meters in the area under discussion.
Tension surfaced over comments at a prior Law Committee meeting. Councilmember Schoonover said remarks there felt like a threat to the city; Mr. Lemonds apologized. Councilmember Sollie announced he would abstain from voting on the legislation because SCP is his current client. Mayor McDaniel requested council not remove the tabled ordinance from the agenda until SCP’s representative is available in October to continue the discussion. No formal vote on the franchise ordinance was taken at the special meeting.
What happens next: The administration and the law committee will refine a proposal and return it for council consideration at a future meeting when SCP can participate in further discussion.
