For Immediate Release

Contact: Chris Sims   Phone: 806-775-2502

May 6, 2009                                                                                      

LP&L Reaches Major Milestone

(Lubbock, TX) – W.R. Collier, Chairman of the Lubbock Power & Light Electric Utility Board, announced at a press conference today that the utility had achieved a major milestone.  Collier said, “Today LP&L has good news to announce.  We have officially met our $50 million in reserves as mandated in the 2004 City Council ordinance that separated the management of LP&L from the city.  LP&L is back in the black and financially stable once again.”

The reserves were met while LP&L was charging the lowest rates in the city and some of the lowest rates in the state.  The money will provide sufficient cash to meet current operational obligations, stabilize customers’ rates and pay the City of Lubbock the equivalent of a franchise fee.  This 08/09 fiscal year, LP&L will pay the City of Lubbock a franchise-equivalent fee of $5 million.  Next year the fee paid to the city is estimated to be $6 million or more.

LP&L board members also approved $1 million in rebates to their customers again this year, marking the third year in a row for $1 million in customer rebates.

Collier noted that the milestone was reached quicker than many expected when the ordinance was passed in 2004.  At that time the utility had gone from a $36 million surplus in 1994 to a    $6 million deficit in 2003, and was threatening the finances of the city.  Collier praised the hard work and long hours of the unpaid board of experienced Lubbock business leaders. 

“This feat could not have been accomplished without the knowledge and support of several entities including the LP&L board, elected city officials, LP&L staff and management and most of all, our customers” Collier said.

Meeting the reserves is a win-win situation for Lubbock.  Electric rates for LP&L customers will be stable and remain the lowest in Lubbock, and the city’s general fund is getting new money to offset taxes.  The voters overwhelming decision in 2004 to separate LP&L’s management from city hall has put Lubbock’s Home-Owned Advantage back on track.

For more information, contact Chris Sims at (806)775-2502. csims@landl.com.