|
Wednesday,
November 3, 2004
Citizens put themselves at
helm of LP&L
BY D. LANCE LUNSFORD
AVALANCHE-JOURNAL
Lubbock voters put the fate of Lubbock Power & Light in their own
hands Tuesday night.
With 83 percent of voters in favor of moving
control of the power company into an Electric Utility
Board, Lubbock voters gave its City Council authority
to appoint a nine-member panel to run LP&L operations.
"I have to credit the citizens of Lubbock for
giving us a chance to do what we said we were going
to do," said District 3 Councilman Gary Boren, noting
the feasibility of allowing residents to control
government. "It's made of citizens, and citizens
know how to run things."
With all precincts reporting, 49,958 people voted
for the change with 10,224 voting against.
Those in favor of the move said it would give
closer scrutiny to LP&L's revenue while keeping
the city away from siphoning its reserves. The move
creates a buffer between utility finances and other
city accounts.
Running LP&L as a city department for several
years allowed city officials to use money generated
by LP&L for other purposes where funding had fallen
short — areas such as street lighting, park improvements
and street improvements.
When record high natural gas prices hit the nation
because of supply shortages, LP&L couldn't fund
itself, requiring staff cutbacks.
LP&L itself cut 60 jobs. Other city departments
cut back as well in order to draw money back into
LP&L's account.
As election returns came in Tuesday night, Boren
said he spent a few moments reflecting on the tumultuous
year and a half since the struggle to wrangle a
solution in the LP&L issue.
"You look at where it has gone. It's just a miracle,"
he said.
Lubbock's support of the break-off of LP&L will
allow the operation to run more like a business,
proponents claim. District 1 Councilwoman Linda
DeLeon said the people had spoken clearly.
"We're one of the first cities in the entire
state that has done this," said DeLeon, pointing
out her belief that many other cities will follow
Lubbock's lead.
Both Boren and DeLeon said they will start today
determining the makeup of the new board.
"I'll just put my thinking cap on and start thinking
of individuals that could do a great job of serving
the city on this committee."
Lubbock
Power and Light is a municipally owned entity of
the City of Lubbock that is separately governed
by an Electric Utility Board.
LP&L
has over two hundred employees working toward generating
and distributing electrical service for the citizens
of Lubbock, Texas.
LP&L
distributes over 85,000 monthly utility statements
for electric, water, sewer, solid waste and storm
water services.
|
Wednesday November 4, 2009
Electric Companies
Move to Benefit Lubbock
(Lubbock, TX) – Representatives from Lubbock Power
& Light (LP&L), Xcel Energy and the City of
Lubbock
made an announcement today that will lay the foundation
for the future of power in
Lubbock.
LP&L and Xcel Energy have
reached a mutually beneficial agreement that will
allow LP&L to purchase Xcel Energy’s electricity
distribution system within the city and to serve
all of Xcel Energy’s
Lubbock
retail electric customers. Since 1942
Lubbock
has been served by both companies, resulting in
duplication of electric power services, lines, poles
and substations. Both companies have determined
this to be an inefficient and intrusive way to provide
electricity to the community.
“The duplication of retail
electric service in Lubbock
has not been efficient, and we believe we can best
serve Lubbock and our other Texas retail customers by
only providing the low-cost wholesale electricity
to LP&L,” said David Eves, president and CEO of Southwestern Public
Service (SPS), an Xcel Energy company. "Xcel Energy
customers in Lubbock will be served by LP&L,
but Xcel Energy will continue to supply the wholesale
power and transmission services.”
Currently LP&L provides power to
more than 77 percent of households in
Lubbock
but purchases its power wholesale from Xcel Energy.
“It’s natural for LP&L
to pick-up the Xcel retail electric service, since
the City of Lubbock already provides utility service
to all the properties in Lubbock,” Mayor Tom Martin
said.
Because LP&L will use
its solid financial position and bond ratings to
fund the purchase through electric revenue bonds,
electric rates for their customers will remain some
of the lowest in the state.
“We want all our customers
to know that your electric rates will not increase
as a result of this new relationship. LP&L electric
customers will continue to see low electric rates,”
W.R. Collier, LP&L Electric Utility Board Chairman,
said.
Electric customers in the Panhandle and
South Plains enjoy some of the lowest electric rates
in Texas because of Xcel Energy’s low-cost power
generation system and abundant renewable resources.
Xcel Energy will remain a significant part of the
Lubbock
community and will continue its civic involvement
in Lubbock as a regional hub of operations and as
a wholesale electricity provider for LP&L and retail
provider in other areas of the South Plains.
Xcel Energy has received approval from
the Xcel Energy Board of Directors to proceed with
the sale of these assets, and the company is expected
to gain regulatory approvals within the next nine
months. LP&L will be seeking approval from the LP&L
Electric Utility Board and the Lubbock City Council.
“This decision was made in the best interest
of the citizens of Lubbock
as well as in the best interest of dozens of
Texas
and
New Mexico
communities where Xcel Energy will remain the sole
retail provider. This will not be an immediate change,
and we will do everything we can to make this transition
as smooth as possible for our customers,” Eves said.
LP&L and the City were
advised by RBC Capital Markets with respect to financial
matters, R.W. Beck with respect to operational matters
and Vinson & Elkins with respect to legal matters.
Customers with questions
regarding their service are encouraged to contact
their current electricity provider.
|
Please Choose One Of the Following For More About
The Company
Mission
History
Board
Budget
Financial Report
|
