Lubbock Electricity Deregulation

Lubbock Electricity Deregulation: When Does the Market Open Up to Residents?

In February 2022, the LP&L board voted to join the Texas competitive electricity market. This means that Lubbockites will soon be able to choose their electricity providers, and the transition is expected to happen by Fall 2023. LP&L will continue operating their power plants, and the company is expected to be the default electricity provider for residents who don’t want to switch away. 

Most of Lubbock Has Already Connected to the Grid

The city of Lubbock has already taken major steps towards deregulation. In May 2021, LP&L connected 70% of its system to the ERCOT grid, which represents more than 83,000 customers. This transition added around 470 MW of load to the Oncor service territory, but also 120 MW of generation capacity. The remaining 30% of the LP&L system, which serves an estimated 24,000 customers, will be connected to the ERCOT grid in May 2023. The entire LP&L system will have been switched over to Oncor when the retail electricity market opens.

Lubbock is the first major city to join the Texas deregulated market voluntarily. 80% of Texas has been deregulated since 1999, when the state legislature passed Senate Bill 7. However, deregulation has been optional for the 72 municipal power companies and 75 electric cooperatives operating in the Lone Star state. LP&L is the first among these companies to deregulate by choice.

This is not the first time Lubbock citizens have access to electric choice. Before 2010, they could choose between LP&L and SPS (Southwestern Public Service Company). However, LP&L purchased all SPS assets that year, becoming the only electricity provider in the city. Now that LP&L has joined ERCOT, Lubbock citizens will have access to a flock of Texas Retail Energy Providers (REPs).

Lubbock Energy Deregulation Will Save Millions

According to a study by LP&L, electricity costs reached $196.3 million in Fiscal Year 2021-2022, and this amount could drop to $47.6 million with deregulation. Production costs in particular are expected to decrease from $11.3 million per year, to only $866,000. To remain isolated from the ERCOT grid, the city of Lubbock would have required a new power plant with an estimated cost of $350-$700 million.

As the Power to Choose makes it way to Lubbock, you can count on Quick Electricity to keep you informed.