LP&L

More recently, from 1993 – 2003, the city used more than $60 million from the company’s reserve fund to cover expenses and six years of chronic mismanagement resulted in a $22 million operating deficit. The company teetered on bankruptcy. Beginning in 2004, the city restructured the company, including creating an independent utility board to supervise LP&L.

Lubbock Power & Light’s board was suppose to oversee, manage, and promote a business-like utility. After 6 years of competition with Southwest Public Service Co., LP&L and its board completed the acquisition of Xcel Energy in 2010.Then in 2015, after claims of bid rigging and price increases, the plan for Lubbock to join the Texas energy grid and open the market to competition was initiated.

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.

Lubbock / LP&L Will Transition to a Competitive Market

Just like comparing and shopping for cell phone or internet plans, electricity competition means customers can shop for their own electric plan, compare prices, types of fuel resources, and overall contract terms. Electric providers will sell power to Lubbock businesses and residents while LP&L will maintain the electric infrastructure that transports the electricity and delivers the energy to homes, schools, and businesses.

Lubbock Power & Light will not be a retail electric provider and will not partner with retailers. LP&L and City of Lubbock are legally prohibited from contacting or helping residents/customers with the shopping process.