US Power Plant Firm Goes Bankrupt After Winter Storm Penalties
March 31, 2023
Lincoln Power LLC, the owner of two Illinois power plants, filed for bankruptcy after its financial strain was exacerbated by nearly $39 million in penalties levied by the biggest US electric-grid operator.
The Chapter 11 filing allows Lincoln, a unit of Carlyle Group-backed Cogentrix Energy Power Management LLC, to keep operating while working on a plan to repay creditors.
PJM Interconnection LLC, which runs the grid that stretches from Washington to Chicago, fined Lincoln after its plants in Elgin and East Dundee, Illinois, failed to generate enough power during a severe winter storm in December. The grid operator in February demanded that those plants provide millions of dollars in collateral to prove Lincoln’s continued creditworthiness, according to bankruptcy court filings.