Omaha Public Power District is seeking to delay the retirement of three gas-fired units and the conversion of two coal units to gas at its North Omaha power station in Douglas County, Neb.
The company's board previously approved these changes at the power plant to occur by the end of 2023, when its new Standing Bear Lake and Turtle Creek natural gas generation balancing stations are expected to come online.
However, the Nebraska municipal utility now estimates that these two gas plants will become fully available in 2026, due to unforeseen delays with grid interconnection approvals at the Southwest Power Pool, OPPD said in a June 16 news release. The high volume of interconnection requests at SPP created a major backlog of interconnection studies, which are necessary before connecting projects to the grid.
The utility also noted that it is experiencing siting and grading delays, as well as supply chain issues, at its two new natural gas generation projects.
The two projects are part of OPPD's Power with Purpose initiative, which seeks to bring an additional 1,200 MW of natural gas and solar capacity online. The utility said it has also experienced siting and supply chain challenges with its new solar projects.
"This is one of those moments where we need to slow down our present path to achieve our future goals," President and CEO Javier Fernandez said in the release. "The extension of North Omaha Station's current mission supports our commitment to reliability and resiliency, something we know our customers and communities are especially mindful of following the 2021 polar vortex event."
Despite the delay, OPPD said it remains committed to achieving net-zero carbon emissions by 2050.
The board of directors is scheduled to vote on the proposal on Aug. 18.
S&P Global Commodity Insights produces content for distribution on S&P Capital IQ Pro.