Lubbock Power & Light

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Rates

LP&L is proud to offer low, competitive rates to our customers. To compare our rates to others around Texas, click here.


For complete details on our rate structure, view our Electric Rate/Tariff Schedule by clicking here.

Rate Management Methodology


Our rate management methodology is aligned to the philosophy that smaller, more incremental rate adjustments are the most responsible way to manage the utility and support our customers. Larger rate adjustments brought on by delayed decision-making cause unnecessary and unpleasant surprise.


In 2014, Lubbock Power & Light began an infrastructure improvement program to make investments in the reliability and capacity of its transmission, production and information systems to ensure a stable energy future for our customers and our community.  The improvements are funded through rate adjustments in 2014 – 2017.


Originally the rate program called for five years of 5.75% adjustments to our base rate in order to fund our infrastructure improvement program.  After close monitoring of costs and revenues, we have fully funded our infrastructure program and are eliminating the final rate adjustment completely. The only change to the rate structure is to implement a flat annual rate for residential customers who heat and cool with electricity (Rate 3).  The change to the rate is revenue neutral but results in a more stable rate for those customers. If approved by the Electric Utility Board and the City Council, the new rates will go into effect on October 1, 2018.

      Rate 1: (Unchanged) Annual Rate - 3.381¢

      Rate 3: Summer – 5.252¢ / Non-Summer – 1.528¢ to Annual Rate – 2.921¢

  • The reliability and capacity of our transmission, production and information systems is vital and necessary to lay the foundation for 2019 and beyond.
    • Improving the Transmission Grid
      New power line and substation construction related to a 69kV inner transmission loop and a 115kV outer transmission loop is crucial for LP&L to serve Lubbock growth and responsibly manage the transition to the ERCOT grid.
    • Upgrading Information Systems
      Investment in modern customer billing, workforce management and transmission and distribution grid information systems will allow LP&L to better serve our customers.
  • LP&L has tightened its belt; this fiscal year we have implemented over $1.0 million in cost-savings with focused reductions in bill print and statement processing ($0.2 million); maintenance ($0.4 million); and capital outlay ($0.5 million).
  • In addition, LP&L has implemented over $6.7 million in cost-savings over the past five years with reductions in compensation; cutbacks in production costs; and reduced customer service related expenses.
  • These reductions offset additional costs necessary to continue to improve our operations and still reduce overall budgeted expenses. We will continue to identify ways to further improve our efficiencies.

Standard Residential Rates

Service Availability Charge: $8.07 per month per meter

Annual Energy Charge: $0.03381 per kWh

Service Availability Charge: $8.07 per month per meter

Residential Electric Space Heating Rates

Summer Energy Charge: $0.05252 per kWh

Non-Summer Energy Charge: $0.01528 per kWh

Service Availability Charge: $30.43 per month per meter

Residential Net Metering Rates

Summer Energy Charge: (<1,000kWh): $0.01292 per kWh

Summer Energy Charge: (>1,000kWh): $0.02349 per kWh

Non-Summer Energy Charge: (<1,000kWh): $0.00397 per kWh

Non-Summer Energy Charge: (>1,000kWh): $0.01175 per kWh

Service Availability Charge: $13.55 per month per meter

Commercial – Small General Service Rates

Energy Charge: $0.01987 per kWh

Service Availability Charge: $310.44 per month per meter

Commercial – Primary General Service Rates

Energy Charge: $0.00057 per kWh

Demand Charge: $5.15323 per kW

Service Availability Charge: $28.56 per month per meter

Commercial – Secondary General Service Rates

Energy Charge: $0.00080 per kWh

Summer Demand Charge: $8.00922 per kW

Non-Summer Demand Charge: $4.28400 per kW

Service Availability Charge: $28.77 per month per meter

Commercial – Small General Net Metering Service Rates

Energy Charge: (<1,000kWh): $0.00076 per kWh

Energy Charge: (>1,000kWh): $0.01878 per kWh

Your Electric Usage Explained

Service Availability - flat rate necessary to read your meter; calculate, mail and collect each statement; and provide customer service.

Energy Usage (kWh) - amount necessary for basic infrastructure needed to deliver electricity to your home or business, including the wires that provide your electricity and other costs necessary to operate and maintain the electric system.

Demand Usage (kW) - amount necessary to support electrical infrastructure to meet the peak demand for electricity.

Purchase Power Cost Recovery (kWh) – what LP&L pays for power provided to our customers; a pass-through of wholesale power costs with no markup.

Franchise Fee - amount paid to the City that allows LP&L to place its facilities (distribution lines and meters) in the public right-of-way.

Tax – applicable City (1.5%), County (0.5%) and State (6.25%) tax – most residential customers are charged the city tax rate of 1.5%, while most commercial customers are charged the City, County and State tax, totaling 8.25%.
Seasonal rate stabilization takes the guesswork out of our customers’ monthly statements by allowing LP&L to provide a predictable monthly rate. Rate stabilization further empowers customers to understand and reduce their monthly costs by reducing their usage.

Rate Stabilization

LP&L passes the cost of our wholesale power to our customers each month.

One non-summer rate and one summer rate gives our customers better insight into their usage, and further empowers customers to understand and reduce their monthly costs by reducing their usage.

What is Purchase Power Cost Recovery Factor?

LP&L purchases wholesale power, and passes that cost to our customers without any mark-up. The cost of wholesale power is titled “Purchase Power Cost Recovery” on the monthly statement, and is a rate that covers our customer’s cost of electricity used.

Click here to see the current Purchase Power Cost Recovery Factor for each rate class.

What is rate stabilization?

How does rate stabilization work?

How does rate stabilization affect my statement?

Could the Purchase Power Cost Recovery rate change during the non-summer or summer season?