New Lubbock Power & Light Stipulation Reflects "Intent" To Opt-In To Retail Choice As Soon As "Practicable"

Lubbock Power & Light has filed with the Texas PUC an unopposed stipulation which would approve its transition of the majority of its load to ERCOT, subject to terms in the stipulation.

See more on the city and LP&L adopting resolutions stating an intent to implement retail choice here

Notably, the stipulation, 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."

The stipulation further provides, "LP&L agrees that, because it intends to opt-in to retail competition for the Affected Load, it does not request the establishment of a Non-Opt-In-Entity (NOIE) load zone. Parties agree that ERCOT is authorized to determine what zone the Affected Load should be placed within upon the Integration Date." SPS agrees that if any party seeks a make-whole or other similar payment relating to the transition of the Affected Load to ERCOT at FERC, SPS will oppose that request.

The stipulation further provides, "If FERC sets an "exit fee that is required of LP&L if its Affected Load transitions to ERCOT as described in this Agreement, Signatories agree that LP&L shall retain the discretion to determine whether it will pay such a fee, or to decline to complete the transition of the Affected Load to ERCOT."

The stipulation also reflects several previously reported payments LP&L has agreed to under the transition, including $24 million to hold SPS customers harmless and $22 million each year for five years to ERCOT wholesale transmission customers.