Lubbock Power & Light Lowers Electric Rate Heading Into Winter
Second rate decrease in five months 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 winter. This is the second overall rate decrease for LP&L customers in the past five months. The winter 2023-24 rate for a residential customer is an 8.7% rate decrease as compared to the current summer rate, resulting in substantial savings for all customers throughout the winter months of the year. 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 September board meeting, LP&L Electric Utility Board accepted LP&L staff recommendation of a rate decrease. The reduced rate is effective for all residential and commercial customers October 1, 2023 through March 2024 (scheduled date of electric competition in Lubbock).
“LP&L is committed to providing our customers with safe, affordable and reliable power in our last winter as a power provider,” said Joel Ivy, LP&L chief administrative officer. “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
|Summer 2023 to Winter 2023-2024 Change||-8.7%||-8.9%|
|Summer 2023 to Winter 2023-2024 Bill Savings*||$8.70 per 1,000 kWh||$8.71 per 1,000 kWh|
*Savings calculated for average residential customer using 1,000 kWh per month
October 1, 2023 Rate Decrease Breakdown:
Summer 2023 to Winter 2023-24 Reduction
Rate 1: Base Rate – $0.03381 (Frozen since 2017)
PCRF – $0.09969 to $0.09099 (8.7% Decrease)
Total Rate for Summer 2023 – $0.1248 per kilowatt hour
Rate 3: Base Rate – $0.02921 (Frozen since 2017)
PCRF –$0.09777 to $0.08906 (8.9% Decrease)
Total Rate for Summer 2023 – $0.11827 per kilowatt hour