Where Does Lincoln Water 2.0 Fit in All of This?

As conversations continue in Cass County, one question we've heard repeatedly is whether the proposed Tenaska power plant is connected to Lincoln Water 2.0.

The short answer is: No.

These are two separate projects with different purposes, different timelines, and different legal authorities.

Lincoln Water 2.0

Lincoln Water 2.0 is the City of Lincoln's long-term project to develop a second municipal water source by constructing a new Missouri River wellfield, water treatment facility, and transmission system to serve the city's future water needs. The project is currently in its design and property acquisition phase. Construction is anticipated to begin in approximately 2035, with the new water source expected to become operational around 2048.

Because Lincoln Water 2.0 is a public infrastructure project, the City of Lincoln has the legal authority to use eminent domain if necessary to acquire property for the project. According to the City, direct negotiations with landowners are the preferred method, and eminent domain would be considered only as a last resort if an agreement cannot be reached.

The Proposed Tenaska Project

The proposed Tenaska natural gas power plant is a separate, privately owned project being considered under Nebraska's LB 1261 framework.

Unlike Lincoln Water 2.0, this project does not have eminent domain authority for acquiring land. Property discussions have occurred through voluntary negotiations with landowners.

Based on publicly available information, no land has been purchased for the project at this time. However, Tenaska, through multiple limited liability companies (LLCs), has obtained options on property in the area. An option gives a company the right—but not the obligation—to purchase property under agreed-upon terms if the project moves forward.

If developed, the project could begin construction within approximately 2 to 4 years, depending on permitting, regulatory approvals, and other project requirements.

Why This Matters

Although both projects involve infrastructure in Cass County, they are independent projects with different owners, different purposes, different timelines, and different legal processes for acquiring property.

Our goal is to continue providing factual information that helps residents understand these issues and distinguish confirmed facts from speculation.

Fourth PostOne of the biggest misconceptions we've heard is that Cass County residents will end up paying higher electric bills because of this project.

Based on the intent of LB1261, that's not how the legislation is designed.

The bill allows a privately owned generation facility to be built alongside a new, large industrial customer to serve that customer's electricity needs. The legislation requires commercial agreements with Nebraska's public power utilities while preserving the utilities' exclusive right to provide electric service. It is structured so the new industrial load is supported by its own generation rather than relying solely on existing public power resources.

Why does that matter?

Without this type of arrangement, adding a customer that uses an enormous amount of electricity could require significant new infrastructure or generation capacity. LB1261 was created to provide another option—one intended to allow those costs to be associated with the private project instead of automatically falling on existing residential and business customers.

In simple terms:

• The project is intended to pay for its own power generation.

• Existing Nebraska ratepayers are not intended to finance the construction of a private power plant for a new industrial customer.

• Any excess electricity produced may be sold onto the public grid through agreements with Nebraska's public power system.

As always, our goal is not to advocate for or against the project. We're here to provide factual information so residents can better understand what the legislation says and ask informed questions.