Lincoln Electric System

The meeting commenced with a safety briefing and a review of Board member duties. Key discussions included customer comments regarding the Value of Solar Study and legislative positions LES should adopt on energy-specific bills. Committee reports covered operational updates, including the Value of Solar Study progress, 2025 unaudited financial results, financial health KPIs, semi-annual investment reports, internal audit reports, and safety/HR goals for 2026. Significant time was dedicated to reviewing the 2026 State Legislative Report, with detailed positions taken on numerous legislative bills (LB 964, LB 1010, LB 1026, LB 1027, LB 1064, LB 1096, LB 1111, LB 1172, LB 1186, LB 1193, LB 1255, LB 1259, LB 1261). The committee also reviewed the 2025 System Reliability Interruption Report, detailing outage statistics, causes, and proactive improvement programs. The Board entered an Executive Session to discuss market-sensitive information regarding All-in Generation Costs.

This document presents the 2022 Integrated Resource Plan, which serves as a roadmap for resource and transmission planning. The central objective is to achieve net zero CO2 emissions from the generation portfolio by 2040 for LAS, while ensuring long-term system reliability and cost optimization. The plan involves a detailed evaluation of various supply-side and demand-side energy resources, including renewables (wind, solar), battery storage, natural gas, and coal with carbon capture, under diverse fuel price and carbon cost scenarios. A five-year action plan will be developed based on these evaluations.

The 'Powering LES Forward' Strategic Plan guides Lincoln Electric System for the next ten years, aiming to navigate an evolving energy future. It is structured around five strategic objectives: Customer & Community, Infrastructure, Financial Health, Workforce Readiness, and Sustainability, which includes a net-zero CO₂ production goal by 2040. The plan prioritizes balancing reliability, affordability, and sustainability, driven by the vision of enabling progress through people and power, and the mission of responsible stewardship of shared resources.

This Year-in-Review for 2025 highlights innovation, teamwork, and progress at Lincoln Electric System. Key achievements include the approval and rollout of the new strategic plan 'Powering LES Forward', significant efforts in major storm restorations, and the addition of new generation resources, alongside the energizing of the North Bluff substation. The report also details new leadership appointments, extensive student engagement in STEM activities, and the participation of lineworkers in the International Lineman Rodeo, showcasing the utility's commitment to reliability and community stewardship.

The meeting commenced with compliance and Board member duties review. Key discussions included public comments from customers regarding the Sustainable Energy Program growth and 2026 rate increases, suggesting customer-owned generation incentives. The Nominating Committee presented the slate of officers for 2026, who were subsequently elected. The Board reviewed a 2025 reflections video, received a legislative report detailing several bills potentially impacting LES (e.g., concerning CO2 pipelines, renewable energy disclosures, and energy storage regulation), and reviewed 2025 performance for the Sustainable Energy Program, noting investments in energy efficiency and peak demand reduction metrics. The CEO presented an overview of 2026 Key Performance Indicators (KPIs) aligned with the strategic plan objectives and initial 2030 targets.