Simplifies the Regulatory Environment
- Avoids primary regulation by the Federal Government (Federal Energy Regulatory Commission or “FERC”).
- Involves regulation by the Public Utility Commission of Texas and our Texas Legislature.
Unites Lubbock with the State of Texas
- Provides access to Texas power plants and over 1,800 active market participants that generate, sell, or transmit wholesale electricity.
- Opens the door to retail electric competition in Lubbock.
Projected Cost Savings for Lubbock
As part of the final agreement for Lubbock’s entry to ERCOT, Lubbock City Council and the LP&L Electric Utility Board approved an agreement between LP&L and interested parties in ERCOT and Southwest Power Pool (SPP).
The PUCT considered the agreement in adjusting their Order approving the integration into ERCOT. The Order sets Lubbock on the best possible path forward, saving ratepayers money and opening the door to retail electric competition in Lubbock.
According to the Order, upon integration to ERCOT on June 1, 2021, LP&L will pay $22 million each year for the first five years, which will be credited to ERCOT wholesale transmission customers to mitigate integration costs.
Based on third-party studies, projected savings achieved by moving the majority of LP&L’s system to ERCOT exceed the agreed-upon payments.
Lubbock ratepayers are projected to realize the full cost savings of integration to ERCOT after the fifth year.
LP&L will connect 70% of its system and customers to ERCOT.