Lubbock Power & Light

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Your Electric Bill Explained

If you are a Lubbock Power & Light customer, your monthly City of Lubbock Utilities bill includes a section for your LP&L electric service. All other utility services are run by the City of Lubbock.

Depending on your rate class, your electric bill may include the following:

  1. Service Availability – the monthly flat cost per meter that goes toward all meter reading and maintenance, customer service and billing
  2. Energy Usage (kWh) – Also referred to as the “base rate.” The cost for delivering electricity to your home and for operating and maintaining the system. 
  3. Energy Demand (kW) – amount necessary to support electrical infrastructure to meet the peak demand for electricity.
  4. Power Cost Recovery Factor (kWh) – Also known as PCRF; the actual cost LP&L pays to purchase and generate electricity, passed through to customers with no mark-up.  
  5. Franchise Fee – the amount paid to the City in order for LP&L to place distribution lines and meters in the public right-of-way.
  6. Taxes – applicable City (1.5%), County (0.5%) and State (6.25%) tax – most residential customers have a city tax rate of 1.5%, while most commercial customers have a City, County and State tax, totaling 8.25%.

What is rate stabilization?

LP&L uses a common electric utility practice called rate stabilization.

Historically, the Purchase Power Cost Recovery rate fluctuated each month as our supplier’s cost to produce electricity increased or decreased. These regular changes make it difficult for customers to anticipate energy costs.

Through rate stabilization, LP&L absorbs these fluctuations to give customers a steady season rate.

How does rate stabilization work?

How is LP&L planning for the future?