Texas PUC Approves Lubbock Power & Light Integration Into ERCOT
March 8, 2018 Email This Story Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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The Public Utility Commission of Texas today approved the integration of 470 MW of Lubbock Power & Light's load into ERCOT
The PUCT generally adopted stipulations among the parties governing the integration, with certain conditions and revisions to the language included in the final order that do not substantively impact retail market issues.
LP&L, the third largest municipal electric utility in Texas, serves over 104,000 electric meters in the Lubbock area. It is seeking to have 470 MW ("Affected Load"), of its total load of approximately 600 MW, join ERCOT effective June 1, 2021. LP&L also acquired distribution facilities serving approximately 170 MW in Lubbock from SPS in 2010. LP&L's partial requirements contract with SPS related to that 170 MW of load expires in 2044 and is not addressed by the proposed ERCOT transition.
As previously reported, a stipulation in the case, which includes ARM as a signatory, provides that, "LP&L intends to exercise its right to opt-in to retail competition for the Affected Load as soon as is practicable, but with a goal of doing so effective upon the Integration Date. Parties acknowledge that, once the City of Lubbock's City Council adopts the resolution described in PURA § 40.051(b), that statute mandates that the decision is irrevocable."
As previously reported, LP&L's utility board and the Lubbock, Texas City Council have passed resolutions which express an "intent" to provide retail electric customer choice to the 470 MW of load at Lubbock Power & Light which the utility would transition to ERCOT from SPP.
Per the resolutions, LP&L will engage in a study of how to implement customer choice. Any decision on adopting customer choice is subject to a future vote.
About 70,000 customers would be included in the transition to ERCOT, and therefore receive customer choice under the Council's statement of intent
Specifically, during a recent presentation, LP&L informed the Lubbock City Council that, should retail choice be implemented, LP&L would not act as a retail electric provider (including not acting as a competitive REP), and would not handle any billing functions with respect to retail electricity (for the Affected Load). LP&L would solely act as a TDU with respect to the Affected Load.