Lubbock Power & Light

Rates

LP&L is proud to offer low, competitive rates to our customers. To compare our rates to others around Texas, click here.


For complete details on our rate structure, view our Electric Rate/Tariff Schedule by clicking here.

Rate Management Methodology


Our rate management methodology is aligned to the philosophy that smaller, more incremental rate adjustments are the most responsible way to manage the utility and support our customers. Larger rate adjustments brought on by delayed decision-making cause unnecessary and unpleasant surprise.


In FY 2014-15, LP&L implemented a five-year program of annual 5.75% base rate adjustments to cover a significant capital program over a multi-year period and avoid rate volatility. The FY 2017-18 budget incorporates the fourth year of the five-year program.


After careful analysis of infrastructure needs, staff recommended, and the Electric Utility Board and City Council approved a 5.0% based rate adjustment and eliminated the fifth year of the base rate adjustment program.


  • The 5.0% rate adjustment solely affects the base rate, which is the smaller portion of the customers’ electric rate (approximately 30%). For a residential customer (Rate 1) using 1,000 kilowatt-hours of electricity per month, the average monthly change is $1.89.

      Rate 1: Summer - 3.837¢ and Non-Summer - 2.653¢ to Annual Rate - 3.381¢

      Rate 3: Summer - 5.002¢ to 5.252¢ / Non-Summer - 1.455¢ to 1.528¢

  • The reliability and capacity of our transmission, production and information systems is vital and necessary to lay the foundation for 2019 and beyond. Specifically, we need to:
    1. Improve the reliability and capacity of the transmission grid throughout the City. New power line and substation construction related to a 69kV inner transmission loop and a 115kV outer transmission loop is crucial in order for LP&L to serve Lubbock growth and responsibly manage the transition to the ERCOT grid.

    2. Upgrade and replace aged customer service infrastructure. Investment in modern customer billing, workforce management, and transmission and distribution grid information systems will allow LP&L to better serve our customers.

  • LP&L has tightened its belt; this fiscal year we have implemented over $1.0 million in cost savings with focused reductions in bill print and statement processing ($0.4 million); equipment purchases ($0.2 million); payroll/benefits ($0.2 million); and maintenance costs ($0.2 million).
  • Additionally, LP&L has implemented over $4.7 million in cost-savings over the past three years with reductions in compensation; cutbacks in production costs including water and sewer expenses, maintenance costs and chemical supplies costs; and reduced customer service related expenses. These reductions offset additional costs necessary to continue to improve our operations and still reduce overall budgeted expenses.
  • We will continue to identify ways to further improve our efficiencies.

Standard Residential Rates

Service Availability Charge: $8.07 per month per meter

Annual Energy Charge: $0.03381 per kWh

Residential Electric Space Heating Rates

Service Availability Charge: $8.07 per month per meter

Summer Energy Charge: $0.05252 per kWh

Non-Summer Energy Charge: $0.01528 per kWh

Residential Net Metering Rates

Service Availability Charge: $30.43 per month per meter

Summer Energy Charge: (<1,000kWh): $0.01292 per kWh

Summer Energy Charge: (>1,000kWh): $0.02349 per kWh

Non-Summer Energy Charge: (<1,000kWh): $0.00397 per kWh

Non-Summer Energy Charge: (>1,000kWh): $0.01175 per kWh

Commercial – Small General Service Rates

Service Availability Charge: $13.55 per month per meter

Energy Charge: $0.01987 per kWh

Commercial – Primary General Service Rates

Service Availability Charge: $310.44 per month per meter

Energy Charge: $0.00057 per kWh

Demand Charge: $5.15323 per kW

Commercial – Secondary General Service Rates

Service Availability Charge: $28.56 per month per meter

Energy Charge: $0.00080 per kWh

Summer Demand Charge: $8.00922 per kW

Non-Summer Demand Charge: $4.28400 per kW

Commercial – Small General Net Metering Service Rates

Service Availability Charge: $28.77 per month per meter

Energy Charge: (<1,000kWh): $0.00076 per kWh

Energy Charge: (>1,000kWh): $0.01878 per kWh

Your Electric Usage Explained

Service Availability - flat rate necessary to read your meter; calculate, mail and collect each statement; and provide customer service.


Energy Usage (kWh) - amount necessary for basic infrastructure needed to deliver electricity to your home or business, including the wires that provide your electricity and other costs necessary to operate and maintain the electric system.


Demand Usage (kW) - amount necessary to support electrical infrastructure to meet the peak demand for electricity.


Purchase Power Cost Recovery (kWh) – what LP&L pays for power provided to our customers; a pass-through of wholesale power costs with no markup.


Franchise Fee - amount paid to the City that allows LP&L to place its facilities (distribution lines and meters) in the public right-of-way.


Tax – applicable City (1.5%), County (0.5%) and State (6.25%) tax – most residential customers are charged the city tax rate of 1.5%, while most commercial customers are charged the City, County and State tax, totaling 8.25%.

Rate Stabilization

Seasonal rate stabilization takes the guesswork out of our customers’ monthly statements by allowing LP&L to provide a predictable monthly rate. Rate stabilization further empowers customers to understand and reduce their monthly costs by reducing their usage.

LP&L passes the cost of our wholesale power to our customers each month.

One non-summer rate and one summer rate gives our customers better insight into their usage, and further empowers customers to understand and reduce their monthly costs by reducing their usage.

What is Purchase Power Cost Recovery Factor?

LP&L purchases wholesale power, and passes that cost to our customers without any mark-up. The cost of wholesale power is titled “Purchase Power Cost Recovery” on the monthly statement, and is a rate that covers our customer’s cost of electricity used.

Click here to see the current Purchase Power Cost Recovery Factor for each rate class.

What is rate stabilization?

How does rate stabilization work?

How does rate stabilization affect my statement?

Could the Purchase Power Cost Recovery rate change during the non-summer or summer season?