Lubbock Power & Light Lowers Electric Rate Heading Into Summer
Rate decrease specifically affects the purchased power pass-through rate
Lubbock Power & Light (LP&L) is lowering the power cost recovery factor (PCRF) portion of the electric rate for the summer. The summer 2023 rate for a residential customer is an 18.7% rate decrease as compared to the current winter rate, resulting in substantial savings for all customers throughout the hottest months of the year when electricity use is at its highest. The PCRF is the amount LP&L pays to purchase or generate power, passed directly through to customers with no mark-up.
During the regularly scheduled April board meeting, LP&L Electric Utility Board voted unanimously to implement the electric utility staff’s recommendation for a rate decrease. The reduced rate is effective for all residential and commercial customers May 1 through September 30, 2023.
“LP&L is committed to providing our customers with safe, affordable and reliable power in our last summer as a power provider,” said Joel Ivy, director of electric utilities. “We’re thankful we are in a position to pass on savings to our customers when they need it most.”
The rate reduction is possible due to LP&L negotiating lower wholesale power costs in current power contracts and low natural gas prices.
Below is a summary of the rate changes:
PCRF Rate Reduction
|Winter 2022-2023 to Summer 2023 Change||-18.7%||-18.6%|
|Winter 2022-2023 to Summer 2023 Bill Savings*||$22.92 per 1,000 kWh||$22.31 per 1,000 kWh|
*Savings calculated for average residential customer using 1,000 kWh per month for five months
May 1, 2023 Rate Decrease Breakdown:
Winter 2022-23 to Summer 2023 Reduction
Rate 1: Base Rate – $0.03381 (Frozen since 2017)
PCRF – $0.1225 to $0.09969 (18.7% Decrease)
Total Rate for Summer 2023 – $0.1335 per kilowatt hour
Rate 3: Base Rate – $0.02921 (Frozen since 2017)
PCRF – $0.12008 to $0.09777 (18.6% Decrease)
Total Rate for Summer 2023 – $0.12698 per kilowatt hour