Council approves South Central Power franchise after dispute over 5-megawatt threshold

Lancaster City Council approved Ordinance 69-25 on Dec. 1, 2025, granting South Central Power Company (SCPC) a franchise to construct and operate electric transmission and distribution facilities in the city. The roll call showed the ordinance passed with a tally of 7 yes, 2 no and 1 abstention.

SCPC President and CEO Rick Lemons told the council the draft ordinance’s 5-megawatt threshold was too low given the cooperative’s existing 540 million and planned $24 million investments in the area. He said a low threshold would require only distribution upgrades and would not justify the transmission and substation investments SCPC says are needed for long-term service. Lemons said the company had previously proposed a 25-megawatt threshold and was, at the meeting, willing to compromise to 15 megawatts to provide the certainty necessary for multi-million-dollar systems investments.

Mayor McDaniel urged support for the 5-megawatt figure in the draft, describing it as a compromise worked out with economic development stakeholders that preserves the city’s ability to negotiate with alternate providers for large projects. “Locking in a high threshold would remove the city's crucial ability to negotiate with alternative providers for major economic opportunities,” he said, adding that the city intends to respect SCPC’s PUCO-defined territory while retaining flexibility for big economic-development customers.

Mr. Bizjak moved the ordinance and Mr. Schoonover seconded. President Porter called for the roll; the motion carried 7-2-1.

The ordinance, filed as an emergency measure, will allow SCPC to acquire, construct and operate lines for transmission and distribution within Lancaster under the terms approved by Council. Council members who opposed or abstained were not identified in the meeting minutes provided.

Next procedural steps: the ordinance was adopted as recorded and will be entered upon the written record with the Clerk.