LP&L Electricity Distribution Board approves rate cut

LUBBOCK, TX (PRESS RELEASE) – The Lubbock Power & Light (LP&L) Electricity Distribution Board (EUB) has approved a staff proposal to reduce delivery rates for customers by 2%. The next step in the process is for the Lubbock City Council to review and give final approval to the new delivery rate structure for LP&L customers. The rate reduction will be the first since the competitive market opened in Lubbock, with additional rate reductions expected to follow in the coming years. Pending approval by the City Council, the new rates will go into effect on November 1, 2024.

“As LP&L continues to grow our role in Lubbock’s electric distribution system, we are already seeing the cost savings and are pleased to pass those savings directly to our customers,” said Joel Ivy, LP&L’s Chief Administrative Officer. “This reduction is occurring ahead of schedule, and more are expected in the coming years as we work to achieve our goal of being the best-in-class and best-cost distribution system in the state.”

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

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