Lubbock Power & Light Electric Utility Board Approves Rate Decrease

Pending approval by the Lubbock City Council, the proposed rate decrease to take effect November 1.

The Lubbock Power & Light (LP&L) Electric Utility Board (EUB) approved a staff proposal to lower delivery rates on customers by 2 percent. The next step in the process is for the Lubbock City Council to review and give final approval of the new delivery rate structure for LP&L customers. The rate reduction will be the first since the opening of the competitive market in Lubbock and is expected to be followed by additional rate decreases over the coming years. Pending City Council approval, the new rates will take affect November 1, 2024.

“As LP&L continues to grow into our role of Lubbock’s electric delivery system, we are already seeing the benefit of cost savings and we are pleased to be passing those savings directly to customers,” said Joel Ivy, LP&L’s Chief Administrative Officer. “This decrease comes ahead of schedule and is expected to be followed by more in the coming years as we work to meet our goal of being the best in class and best in cost delivery system in the state.”

In April 2024, LP&L officially became a transmission and distribution service provider in the ERCOT market as customers across the city picked their new retail providers. Lubbock is the largest system to migrate into the ERCOT market and the first municipally owned utility in the state to voluntarily deregulate and offer choice to its customers. Like other transmission and distribution utilities that began serving in this role in the ERCOT competitive market in 2002, LP&L incurred costs to transition to this new model of retail electric service. The utility’s stated goal is to consistently reduce rates, pay down debt, and cash fund infrastructure projects over the next six years.

In addition to working to lower rates and focus on reliability, LP&L has seen upgrades in its bond ratings since the start of competition in April due to its new, efficient business model. LP&L currently holds an ‘A+’ rating with Standard & Poor’s, an ‘A+’ with Fitch Ratings, and an ‘Aa3’ rating with Moody’s Investor Services.