Service Availability – the monthly flat cost per meter that goes toward all meter reading and maintenance, customer service and billing
Energy Usage (kWh) – Also referred to as the “base rate.” The cost for delivering electricity to your home and for operating and maintaining the system.
Energy Demand (kW) – amount necessary to support electrical infrastructure to meet the peak demand for electricity.
Power Cost Recovery Factor (kWh) – Also known as PCRF; the actual cost LP&L pays to purchase and generate electricity, passed through to customers with no mark-up.
Franchise Fee – the amount paid to the City in order for LP&L to place distribution lines and meters in the public right-of-way.
Taxes – applicable City (1.5%), County (0.5%) and State (6.25%) tax – most residential customers have a city tax rate of 1.5%, while most commercial customers have a City, County and State tax, totaling 8.25%.
LP&L uses a common electric utility practice called rate stabilization.
Historically, the Purchase Power Cost Recovery rate fluctuated each month as our supplier’s cost to produce electricity increased or decreased. These regular changes make it difficult for customers to anticipate energy costs.
Through rate stabilization, LP&L absorbs these fluctuations to give customers a steady season rate.
The Purchased Power Cost Recovery rate is the actual wholesale cost LP&L pays for power, passed on to customers with no added markup or fees. The rate is designed to match LP&L’s actual purchase costs with actual revenues collected over the course of one fiscal year. LP&L tracks and compares actual costs and actual revenues collected on a monthly basis.
Through rate stabilization, LP&L sets seasonal rates to cover the estimated cost of wholesale power: non-summer (October through May) and summer (June through September).
In the unlikely event that wholesale power costs unexpectedly increase or decrease, LP&L can adjust the Purchased Power Cost Recovery rate as needed to match the actual purchase costs with revenues collected over the course of the fiscal year.
Lubbock Power & Light developed an infrastructure improvement program to make investments in the reliability and capacity of its transmission, production and information systems to ensure a stable energy future for our customers and our community.
Improving the Transmission Grid
New power line and substation construction related to a 69kV inner transmission loop and a 115kV outer transmission loop is crucial for LP&L to serve Lubbock growth and responsibly manage the transition to the ERCOT grid.
Upgrading Information Systems
Investment in modern customer billing, workforce management and transmission and distribution grid information systems will allow LP&L to better serve our customers.