Last Updated on July 23, 2024 by Mary Pressler
Understanding Your Lubbock Electricity Bill: Breaking Down the Charges
Lubbock has a deregulated electricity service since January 2024, which means homes and businesses can now choose their electricity providers. Before deregulation, Lubbock Power & Light (LP&L) was the only company authorized to sell electricity in the city. You can now choose among many Retail Electricity Providers (REP), while LP&L is the “poles and wires” company in charge of the local grid, also known as a Transmission and Distribution Utility (TDU). As a result, your power bill now includes two companies:
- Your chosen electricity provider.
- LP&L, who delivers electricity from your provider to your home.
The following table summarizes how Lubbock electricity bills changed with deregulation:
| Power Bill Charges | Before Deregulation | After Deregulation |
| Electricity supply | Billed by LP&L | Billed by your chosen provider |
| Power grid transmission and distribution service | Billed by LP&L | Billed by LP&L |
Energy deregulation is a complex topic, and there is a common misconception that LP&L was going to disappear after deregulation. Now that Lubbock power bills are showing the names of two companies, there has been some confusion. However, LP&L is no longer billing you for the electricity supply. They only charge you for the delivery service provided by their power grid.
This is how the electricity market works in most of Texas. For example, Dallas-Fort Worth residents can choose an electricity provider, but all bills include delivery fees from Oncor – the local transmission and distribution utility (TDU). In the case of Houston, the local TDU is CenterPoint Energy.
San Antonio and Austin do not have deregulated electricity. These cities are served by two municipal power companies called CPS Energy and Austin Energy, respectively. These power companies charge consumers for both the electricity supply and the delivery service, just like LP&L before deregulation in Lubbock.
Fees and Taxes in Lubbock Power Bills
Lubbock electric bills include three charges that apply for both the energy supply and TDU fees:
- PUC Assessment Fee = 0.1667% (1/6 of 1%)
- Gross Receipts Reimbursement Charge = 1.997%
- Lubbock Sales Tax = 1.5%
Here is an example of how these charges would apply for a Lubbock home using 2,000 kWh per month, with an electricity price of 12 cents/kWh and the LP&L delivery fee of 6.442 cents/kWh.
Electricity Bill Charges from Your Electricity Provider:
| Power Bill Item | Description | Amount (USD) |
| Energy Charge | 2,000 kWh x $0.12/kWh | $240.00 |
| PUC Assessment | 1/6 of 1% | $0.40 |
| Gross Receipts Reimb. | 1.997% | $4.79 |
| Subtotal | $245.19 | |
| City Sales Tax | 1.5% | $3.68 |
| Total | $248.87 |
Electricity Bill Charges from Lubbock Power & Light:
| Power Bill Item | Description | Amount (USD) |
| Energy Charge | 2,000 kWh x $0.06442/kWh | $128.84 |
| PUC Assessment | 1/6 of 1% | $0.21 |
| Gross Receipts Reimb. | 1.997% | $2.57 |
| Subtotal | $131.63 | |
| City Sales Tax | 1.5% | $1.97 |
| Total | $133.60 |
In this example, the total power bill is $382.47. The electricity provider charges $240, LP&L charges $128.84 for the “poles and wires” service, and the total fees and taxes are $13.63.
On average, the homeowner in this example is paying 19.1 cents per kWh. The LP&L charge and the other smaller fees cannot be avoided, but you can look for an electricity plan with a lower energy charge. The energy charge represents around 63% of the total bill in this example.
Since LP&L is the only TDU in Lubbock, you cannot avoid the fee of 6.442 cents/kWh. However, if you reduce your electricity consumption with energy efficiency measures, the kWh measured by your smart meter are also less. A homeowner using 2,000 kWh per month pays $128.84 in TDU fees, but this amount drops to $96.63 for a homeowner using 1,500 kWh per month.
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