Lincoln Electric System

This document provides an update on board-related initiatives, focusing on enhancing governance processes, improving the board experience, and increasing the visibility of the strategic plan. Key focus areas include establishing a board and committee topic calendar, standardizing committee processes and roles, reviewing committee structure, and executing board experience improvements such as a new board portal and updated new member orientation. The update also emphasizes improving board visibility into strategic plan execution through quarterly KPI reporting, which is set to resume in Q3, and fostering committee-level KPI discussions to sharpen oversight. The desired outcomes are alignment through structure, consistency, and transparency, along with creating space for long-form discussions on strategic execution and policy deliberation.

The board received updates from various committees, including reports on generation revenue, SAP design tools, transmission upgrades, and personnel goals. Public comments addressed distributed energy resources and climate change impacts. Board members approved the expansion of the Renewable Net Metering Rider Tier II and conducted an executive session to review the Chief Executive Officer's performance and salary, which was subsequently approved.

The public meeting provided an overview of a study regarding the value of customer-owned distributed solar energy. Key topics included an examination of the financial benefits distributed solar brings to the system, specifically concerning the Southwest Power Pool market, energy capacity, distribution system impacts, and environmental credits such as renewable energy certificates and carbon offsets. The discussion also covered the methodology for modeling these benefits, including the use of software to project costs and the importance of ensuring that solar integration does not create a cost shift to non-participating customers.

The meeting included public comments regarding climate change and data center energy impacts. The Operations and Power Supply Committee provided updates on the Terry Bundy Generating Station expansion and a Value of Solar study. Legislative reports were presented on various bills affecting public utilities and critical infrastructure. The board reviewed and ratified labor agreements for two IBEW union groups, Trades & Crafts and Rokeby Generation Station, following recent negotiations.

The board discussed community benefits and renewable energy investments, including solar power incentives and storage. Reports were presented by the Operations and Power Supply Committee, covering local generation updates and transmission planning, and the Finance Committee, which covered the external audit of 2025 financial statements, first-quarter financial results, and technology capital budgets. The board approved the 2026 Bond Issuance, Resolution 2026-3, to fund turbine additions and refund outstanding debt. Additionally, the board reviewed the 2026 Nebraska legislative session, received an update on the Value of Solar study, and held an executive session to discuss potential litigation.