Lubbock Power & Light

Lubbock City Council and LP&L EUB Approve Stipulations for Proposed ERCOT Transition

LUBBOCK (February 8, 2018) – This week, Lubbock Power & Light (LP&L) continued its efforts to move the majority of its customers from the Southwest Power Pool (SPP) to the Electric Reliability Council of Texas (ERCOT).  This move is a process rather than a single event and this week’s efforts move the process forward.   There are both savings and costs associated with this change and LP&L states the near and long-term outlook shows a net savings to Lubbock ratepayers. 

At the conclusion of the Public Utility Commission (PUC) Open Hearing in January, the PUC commissioners asked all interested parties in the ERCOT and SPP system to continue working on an agreement that reasonably holds all ratepayers harmless related to this prospective move by LP&L.  An agreement has been reached between LP&L and stakeholders in ERCOT and SPP.  The LP&L Electric Utility Board and the Lubbock City Council voted unanimously this week to move forward with the agreement.  The agreement will now be presented to the PUC at its meeting on February 15 where it is expected to deliberate on Lubbock’s request for integration. 

According to the terms of the agreement, upon Lubbock’s integration to ERCOT on June 1, 2021, LP&L will pay $22 million each year for the first five years to mitigate integration costs and that amount will be credited to ERCOT wholesale transmission customers.  Upon integration, LP&L will make a one-time payment of $24 million to SPS (Xcel Energy); this payment is for SPS’s Texas retail, wholesale transmission, and New Mexico retail jurisdictions.  The anticipated annual savings LP&L expects to achieve by moving the majority of the LP&L system to ERCOT exceeds the agreed-upon payments.

The agreement reached by LP&L, and the interested parties in the ERCOT and SPP system sets Lubbock on the best possible path forward that saves their ratepayers money and opens the door to retail electric competition in Lubbock. 

Lubbock Power & Light is the third largest municipal electric utility in Texas and has been serving the citizens of Lubbock since 1917. LP&L serves more than 104,000 electric meters and owns and maintains 4,936 miles of power lines and three power plants in and around the City of Lubbock.  For more information about Lubbock Power & Light, as well as updates on new customer initiatives implemented, go to and follow the utility on Facebook and Twitter. 

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