3-minute read
Lakeland Electric is preparing to invest $3.5 million to extend the lifespan of McIntosh Unit 5 — its aging main baseload generator — while also planning how to meet customers’ demand for power in coming decades.
The City Commission approved contracts to install a new control system and rebuild Unit 5’s combustion turbine exhaust system, with the goal of keeping the flagship generator operating until 2037.
Because of its size and efficiency, utility officials say extending Unit 5’s functional life is far cheaper than replacing it outright.
Why Unit 5 matters
McIntosh Unit 5, on the north shore of Lake Parker, was commissioned in 2001 and has produced more than 60% of Lakeland Electric’s energy in recent years.
Its importance to the city’s energy production became clear when a turbine failure idled Unit 5 for four months in 2023. As a result, the city spent $21 million on repairs and additional millions buying power from the Orlando Utilities Commission.
New control system will update ‘brains’ of Unit 5
On Jan. 20, city commissioners unanimously approved a $3.2 million contract with Siemens Energy to install an Omniverse T300 control system in McIntosh Unit 5.
Deputy City Attorney Ramona Sirianni said the current modules that tell the massive natural-gas-powered generator how to operate are no longer supported and have become increasingly difficult to maintain.
“The new modern control system upgrades will not only address aging components, such as vibration monitoring and protection of equipment, but will also increase the overall reliability and availability of Unit 5,” Sirianni said.
She added that the upgrade will enhance cybersecurity. Installation will occur in phases, beginning this fall and concluding in the spring of 2028.
The first payment of $482,100 is included in the utility’s fiscal 2026 budget. The remaining cost will be split between fiscal years 2027 and 2028.
Repair instead of replace — at a fraction of the cost
On Feb. 2, city commissioners approved paying Northeast Precision Welding up to $365,515 for modifications to Unit 5’s combustion turbine exhaust system.
City staff told commissioners that replacing the entire system would cost about $3.5 million, making repairs the far more cost-effective option. The work is intended to address wear and deterioration while extending the system’s usable life.
“The exhaust system for Unit 5 is 25 years old,” Sirianni said. “If neglected, the cracks and related issues in the exhaust cylinder could cause Unit 5 to be load-limited or result in a forced shutdown.”
The exhaust cylinder helps contain the 1,180-degree-Fahrenheit natural gas from leaking and putting employees and equipment at risk.
The new contract covers the second of four rounds of modifications. The first took place last year during the unit’s planned Spring 2025 outage. The next is scheduled for the planned outage from March 2–16, 2026.
Resource planning for the next 20 years
On Feb. 2, the Commission also approved a $191,480 contract with Burns & McDonnell Engineering Company to create a strategic plan for how the utility will meet power demand over the coming decades — including when and how assets such as McIntosh Unit 5 should be replaced.
Due to the long construction time and financial risks of building new conventional plants, General Manager Mike Beckham has said the utility is unlikely to replace Unit 5 with a similar unit. The study will help define alternatives, including potentially buying a stake in another utility’s plant or entering a long-term power purchase agreement.
It will also look at how the grid works with outside partners, potential new energy resources, different generation and storage technologies, and major capital investments. The study’s goal is to help Lakeland invest wisely in its energy future while keeping service dependable and rates fair for customers.
The report is expected to be finished by July 31, 2026.
latest news
Something went wrong. Please refresh the page and/or try again.