Lubbock Power & Light Set To Consider Adoption of Process To Establish "Default" REPs, POLRs In Transition To Choice

September 20, 2022

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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At a September 20 Electric Utility Board meeting of Lubbock Power & Light, the Board is scheduled to consider a resolution approving and establishing the procedures and criteria for designating the Provider of Last Resort, Voluntary Retail Electric Providers, and Default Retail Electric Providers, upon the initiation of retail competition in Lubbock Power & Light’s certificated area

According to the latest materials from LP&L, retail choice is expected to begin in October of 2023.

Under the proposed resolution under consideration, during the summer of 2023, customers will have an open sign-up period to choose who they would like to provide their electric service.

For those customers who do not select a Retail Electric Provider (REP), they will be randomly assigned to a Default REP (DREP) to ensure continuity of service. There may be one or more REPs designated as DREPs by LP&L, as further explained below

Under the proposal, a customer assigned to a Default REP will be provided a market based, month-to-month product and will be able to select a REP and switch away from the Default REP without penalty.

"LP&L is further defining a Default REP (DREP) as a Large Service Provider who is capable of accepting a large number of customer accounts due to a non-POLR event. A potential non-POLR event transition of customer accounts will only apply to those accounts without a designated, or chosen REP, by the time the transition to the retail market is complete. LP&L will utilize the stated criteria contained herein to select DREPs for the service area of LP&L," the proposal states

A DREP is to be used only for the initial move to market and for no other continued purpose.

LP&L would also adopt a volunteer POLR (VREP) and non-volunteer POLR framework, similar to that used in other areas of Texas open to choice (though pricing would be determined via RFP responses rather than rule), for any customers whose chosen REP does not continue service to those customers

LP&L would issue an RFP to select DREPs, a POLR, and VREPs, using a selection criteria noted further below, which includes a questionnaire

A selection committee composed of LP&L, city, and other representatives would select one (1) POLR and up to 14 additional VREPs to serve Lubbock customers for a two-year period.

The number of DREPs will be decided by the selection committee based on the scoring criteria, including the responses to a questionnaire.

The questionnaire would seek a response to, among other things:

• Whether the REP has served customers in Texas for at least 18 months

• Whether the REP has been designated as an LSP (Large Service Provider) and/or VREP by the PUC in the last five years (and the number of times so designated)

• Number of ESI IDs REP may accept from LP&L’s service territory per customer class in addition to current customers served

• A summary of any additional benefits that may be available to LP&L’s ratepayers, the City of Lubbock, and its citizens in connection with selecting the REP to provide POLR services

• A summary of the REP’s current and historic provision of POLR services and other retail services in other areas of Texas, including the REP’s approximate number of current retail customers and historic rates for each class of service

• Summary of how the REP works with low-income customers and products specifically intended for that group of citizens

• Proposed POLR rate or rate formula for the Lubbock service territory

The RFP evaluation criteria will be as follows

DREP Criteria

• Responses on the questionnaire

• Ranking of market share in ERCOT on a list provided to LP&L by ERCOT from 366 days ago

• Product offerings specifically designed for low income customers

• Community involvement in cities the REP currently serves

• Willingness to serve as POLR/VREP

POLR Criteria

• Responses on the questionnaire

• Ranking of market share in ERCOT on a list provided to LP&L by ERCOT from 366 days ago

• Product offerings specifically designed for low income customers

• Community involvement in cities the REP currently serves

VREP Criteria

• Responses on the questionnaire

• Ranking of market share in ERCOT on a list provided to LP&L by ERCOT from 366 days ago

• Product offerings specifically designed for low income customers

• Community involvement in cities the REP currently serves

Under the proposal, on or about October 1, 2022 - LP&L will send out a Request for Proposal (RFP) to solicit Retail Electric Providers willing to serve as Provider of Last Resort (POLR), Volunteer Retail Electric Provider (VREP), and Default Retail Electric Provider (DREP) for LP&L’s certificated service territory. The RFP will be sent out to the public for 45 days.

Once the submissions are received, LP&L expects to take approximately 30 days (up to 60 days) for evaluation and negotiation.

If the process described above is approved by the utility board, the proposal must also be approved by the city council, and the proposal is expected to be addressed at the council's meeting later this month

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