Electricity Deregulation
Timeline to Choose Your Electricity in Lubbock
The designation of safety net providers for businesses and residents in Lubbock, TX, was an important decision. If you do not choose a provider when the market opens up, you will be randomly assign a provider so that you are not left without power.
Electric Deregulation in Lubbock, TX
2004: Lubbock officials signed a 15-year contract with Southwest Public Service Company, a subsidiary of Xcel Energy, to generate electricity and provide it exclusively to Lubbock Lighting & Power (LP&L). It was set to expire in June 1, 2019.
2010: Before the choice to move to a competitive electricity market was broached, Lubbock Lighting & Power (LP&L) signed an agreement to acquire 170 megawatts of electricity through a wholesale contract for 25 years with the Southwest Power Pool, a federal agency for the central U.S. Also in 2010, Lubbock Lighting & Power (LP&L) secured another 100-megawatt wind contract for 10 years with the West Texas Municipal Power Agency (June 1, 2019 thru May 30, 2030).
2015: After controversy in 2014 after claims of bid rigging and price increases, the plan for Lubbock to join the Texas energy grid was put into motion.
2017: The transition to the Electric Reliability Council of Texas (ERCOT) required that the Public Utility Commission of Texas go through a series of studies to quantify and analyze the effects the move would have on residents and businesses.
Lubbock Power & Light (LP&L) had to sign another stopgap agreement in March 2017 with Southwest Public Service Company to extend electricity supply (power generation) on June 1, 2019, through June 1, 2021.
2018/2019: As Summer 2019 approached, Lubbock had two choices, build a new power plant or join ERCOT and the Texas electricity grid. Both would cost millions of dollars, but joining ERCOT would give consumers choices.
The stopgap agreement with Xcel Energy pushed the transition deadline to June 1, 2021.
2021: Approximately 70% (83,000 customers) have been migrated to the Texas grid (ERCOT). The remaining 30% (about 24,000 customers) will be moved over in summer 2023. Rather than offer just 70% of customers in Lubbock a choice, the Lubbock City Council plans to open up the market in late 2023.
2022: On February 22, 2022, the Lubbock City Council cast a vote in favor of electric deregulation, the final hurdle to transition Lubbock Power and Light (LP&L) to competitive retail electric service. LP&L hopes to fully transition service by mid to late 2023.
2023: In May 2023, the remaining 30% of customers still connected to the Southwest Power Pool will over to the ERCOT market pending regulatory approval by the Public Utility Commission of Texas. Once 100% of customers are migrated to the ERCOT market, competition will begin.
Once customers are transitioned to their selected providers, Lubbock Lighting & Power (LP&L) will become a “wires company” focused solely on maintaining the electrical infrastructure across Lubbock. City of Lubbock Utilities will continue to provide billing and day-to-day customer service for water and solid waste as it currently does.