Lubbock Power & Light Lowers Electric Rate Heading Into Summer

by Paul Ciampoli
APPA News Director
May 1, 2023

Texas public power utility Lubbock Power & Light is lowering the power cost recovery factor portion of its electric rate for the summer.

The summer 2023 rate for a residential customer is an 18.7% rate decrease as compared to the current winter rate, resulting in substantial savings for all customers throughout the hottest months of the year when electricity use is at its highest, it said.

The PCRF is the amount LP&L pays to purchase or generate power, passed directly through to customers with no mark-up.

During an April board meeting, the LP&L Electric Utility Board voted unanimously to implement the electric utility staff’s recommendation for a rate decrease. The reduced rate is effective for all residential and commercial customers May 1 through September 30, 2023.

“LP&L is committed to providing our customers with safe, affordable and reliable power in our last summer as a power provider,” said Joel Ivy, director of electric utilities. “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.