February 2018 UPDATE
The Public Utility Commission of Texas (PUCT) set the path for the successful entry of Lubbock Power & Light to the Electric Reliability Council of Texas (ERCOT). The commissioners of the PUCT gave instruction to PUCT staff to return at the March 8, 2018 open meeting to present a final order for their approval. If approved by the PUCT, it is anticipated that integration of Lubbock’s system could take place as early as June 2021 pending the completion of electrical lines required to make the transition. Read the full release here.
October 2017 Update
LP&L initiated the formal application process to join the Electric Reliability Council of Texas (ERCOT).
The filing of Lubbock’s application with the PUC follows two years of extensive studies and research conducted by multiple stakeholders, including LP&L, to determine how Lubbock’s entry to the ERCOT electrical market would affect ERCOT, SPP and Lubbock ratepayers.
The results of these studies and workshop will help guide the process as the PUC determines if it is in the public’s interest to allow Lubbock to join over 90 percent of Texans currently in ERCOT.
LP&L customers received postcards in early October notifying them of the application filing, and there was a hearing on Oct. 9, 2017, to establish the timeline and process for how the public interest case would proceed.
Customer Notification and Input
LP&L customers received postcards in early October notifying them of the application filing.
Customers who wished to intervene in or comment upon the proceedings could mail requests to intervene or comments to the Public Utility Commission of Texas; all requests to intervene must have been received by the Public Utility Commission by October 25, 2017.
Advantages of Joining ERCOT
Provides affordable power.
- Eliminates the need to build an expensive power plant with estimated costs ranging from $350 to $700 million.
- Provides access to 550 generation units and over 1,100 active market participants that generate, sell, or transmit wholesale electricity.
- Allows us to buy the most cost effective power from the grid.
- Cuts our wholesale power costs by eliminating expensive fixed capacity charges
Assures diversified energy portfolio from Texas-based power plants.
- Provides full access to West Texas wind and a mix of conventional and renewable electric generation such as natural gas, solar and coal.
- Provides stability through having access to 550 generation units across Texas, avoiding dependence on one unit.
Simplifies the regulatory environment.
- Avoids regulation by the Federal Government (Federal Energy Regulatory Commission or “FERC”).
- Involves regulation by the Public Utility Commission of Texas and our Texas Legislature, not federal authorities.
- Unites Lubbock with the State of Texas through our connection to the statewide transmission system.