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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

Rate 1

Rate 3

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 Winter 2023-24 – $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 Winter 2023-24 – $0.11827 per kilowatt hour