BEATRICE – The Boards of Nebraska Public Power District and Lincoln Electric System may end an agreement for electricity produced at NPPD’s Sheldon Station, near Hallam.
The public power entities boards of directors are expected to vote on a termination and release agreement, today. If approved, LES would pay NPPD $10.5 million to terminate an energy supply agreement, at the end of this year.
Chief Executive Officer of LES, Kevin Wailes, says the utility is in the process of developing a new integrated resource plan that will best serve retail customers. He says the system has excess electric capacity, well into the future…and that terminating the agreement would not impact the system’s ability to meet long-term customer needs.
NPPD President and CEO Pat Pope says the district has been pursuing a venture with California-based Monolith Materials at Hallam. That company broke ground last fall on a proposed carbon black production facility. NPPD would purchase the hydrogen produced in Monolith’s carbon black production and use that fuel, rather than coal, to generate electricity at Sheldon Station.
The Sheldon Station is a 225-megawatt facility.