Daily Email







City Council Of Lubbock, Texas Approves Resolution To Implement Retail Electric Choice At Lubbock Power & Light

February 22, 2022

Email This Story
Copyright 2010-21
Reporting by Paul Ring •

The following story is brought free of charge to readers by EC Infosystems, the exclusive EDI provider of

The City Council of Lubbock, Texas formally adopted a resolution providing that, "retail electric customer choice shall be initiated [for city utility Lubbock Power & Light] on the completion of all conditions provided herein." (such conditions are noted below)

With city council approval for electric choice now granted, subject to the largely customary conditions listed below, LP&L hopes to transition to competitive retail electric service in late 2023.

The late 2023 implementation date reflects the fact that part of LP&L's system remains in SPP. LP&L hopes to migrate the remaining 30% of the system (about 24,000 customers) to ERCOT in summer 2023

LP&L's adoption of choice will mark the first time a municipally owned utility voluntarily adopted a competitive retail market since Texas Senate Bill 7 first became law in 1999.

As previously reported, LP&L under retail choice would not serve as the "default retail provider", which LP&L describes as a stopgap energy provider who supplies electricity if a customer does not choose a retail provider or if a customer's retail provider goes out of business (e.g. POLR). LP&L is to conduct an RFP to select a default provider(s).

Discussion of LP&L's draft transition plan contemplates customers being provided an opportunity to select their REP prior to the start of choice to avoid being assigned to a default REP, similar to the implementation of choice at Sharyland.

LP&L will continue to serve as the sole provider of metering services, but, consistent with the Texas retail market, LP&L will not bill customers, and will instead bill REPs for delivery service provided to REPs.

Specifically, under the adopted council resolution, customer choice will commence when the following conditions have been met, and the council's irrevocable resolution is expressly subject to the occurrence of all of the following conditions:

(1) LP&L's Total Load has been fully integrated into ERCOT for a minimum period of sixty (60) days.

(2) ERCOT and/or the Public Utility Commission of Texas, or any other applicable regulatory body, approves the initiation of customer choice for LP&L and its customers, to the extent necessary or required.

(3) The Electric Utility Board and the City Council of the City of Lubbock have established the procedures and criteria, if desired, for selecting the Provider of Last Resort ("POLR") for customers within LP&L's certificated service area as of the date of the initiation of customer choice, and have ultimately designated another entity that will serve as the POLR pursuant to Texas Utilities Code§ 40.053.

(4) LP&L has the necessary software in place that bills the retail electric providers and manages customer and meter related transactions and is fully operational and all necessary testing completed.

(5) LP&L has its EDI Gateway, which consists of a communication channel with ERCOT and all other required parties, fully operational and all necessary testing completed.

(6) LP&L has completed its distribution system cutover such that all distribution within LP&L's certificated retail service area is disconnected from the SPS Legacy System, and connected with LP&L's current distribution system.

(7) The Electric Utility Board and the City Council of the City of Lubbock have determined that there are, and will continue to be, a sufficient number of retail electric providers, including a sufficient number of independent, unaffiliated retail electric providers within the ERCOT market and that are willing and able to provide service in Lubbock to adequately provide competitive customer choice for LP&L's certificated area.

(8) LP&L has executed any and all necessary contracts with REPs who intend to serve LP&L's certificated area upon the initiation of customer choice.

(9) LP&L has made any necessary filings with the PUC regarding its generation function, to the extent required under Texas Utilities Code § 40.55(a)(2) and rules promulgated thereunder.

(10) To the extent desired by the governing bodies, the Electric Utility Board has recommended and the City Council of the City of Lubbock has approved an ordinance requiring the registration of REPs that are serving the City of Lubbock pursuant to Texas Utilities Code § 39.358.

(11) The Electric Utility Board and the City Council of the City of Lubbock have approved the Tariff for Competitive Retailer Access for the City of Lubbock, acting by and through Lubbock Power & Light, as provided in 16 Texas Administrative Code§ 25.215 and Appendix V to the PUC Electric Substantive Rules, 16 Texas Administrative Code, Chapter 25, and further approved the rates for open access on distribution facilities under Texas Utilities Code § 40.058, and filed same with the Public Utility Commission of Texas no later than 90 days prior to the implementation of customer choice.

(12) LP&L has taken all steps necessary to continue the metering function for its customers in its certificated service area, with such metering function not being competitive as provided in Texas Utilities Code §§ 40.053(b) and 40.057.

(13) LP&L has substantially completed installing its advanced metering infrastructure for electric service in LP&L's certificated area.

(14) The Electric Utility Board and the City Council have approved a transition to competition plan for customers in LP&L's certificated area that have not affirmatively selected their own retail electric provider prior to the date retail choice is initiated.

(15) Any of the foregoing conditions may be waived by the Electric Utility Board and the City Council if and only to the extent such conditions are no longer legally required for the adoption of customer choice in the City of Lubbock.

(16) The Electric Utility Board and the City Council of the City of Lubbock have, by resolution, confirmed that the foregoing conditions in this resolution have, in their sole judgment, been satisfied or exceeded and have established a date certain for when customer choice will begin in the City of Lubbock.

The council's resolution states that, "the City Council of the City of Lubbock believes that customer choice and retail electric competition will benefit the citizens of Lubbock and enhance growth and development in Lubbock."

The council's resolution notes that, per statute, the decision to participate in customer choice by the adoption of a resolution is irrevocable.

"[T]he decision to initiate customer choice upon the conditions outlined herein is forever irrevocable and cannot be revoked, recalled, repealed, or altered in any way," the resolution notes

Noting last year's volatility in the ERCOT market, a representative of LP&L appearing before the city council noted that moving to customer choice would reduce risk for LP&L (from not having to arrange power supply and being exposed to spot prices) and would allow it to focus on its delivery operations

NEW Jobs on
NEW! -- Energy Pricing Analyst -- Retail Supplier
NEW! -- Digital Marketing Manager -- Energy Marketer

Email This Story


Copyright 2010-21 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.



Daily Email