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LP&L operates within the certificated areas established by the Texas Public Utility Commission (PUC), located within the Lubbock city limits. These areas are known as single, dual, and triple certificated areas.

In single certificated areas LP&L does not compete, it has either all or none of the service. In dual certificated areas, LP&L only has one competitor and in triple certificated areas, LP&L had two competitors. LP&L’s competitors are Xcel Energy and South Plains Electric Cooperative, Inc. On October 29, 2010, LP&L purchased the majority of Xcel Energy’s distribution assets located within the Lubbock city limits. For more information on Lubbock's certificated areas, please visit the Electric Service Map.

The PUC regulates certain utility rates, operations and services located within its state jurisdiction. LP&L is municipally owned electric utility and is therefore not subject to the jurisdiction of the PUC, except for certain certificated areas of operation and certain reporting requirements under the Texas Public Utility Regulatory Act. LP&L is authorized to charge and collect reasonable rates necessary to produce revenues sufficient to pay operational and maintenance expenses, debt service requirements and other contractual commitments.

LP&L is associated with the West Texas Municipal Power Agency (WTMPA). In 1983, the Texas cities of Lubbock, Brownfield, Floydada, and Tulia, created WTMPA as a joint power agency. WTMPA is a municipal power agency that was created to enhance the negotiating strength of the individual Cities in obtaining favorable firm electric power contracts and in coordinating joint planning for additional generation. An eight-member Board of Directors governs WTMPA. The board consists of two directors from each city. One member is elected the president and he presides over monthly meetings.