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 September 2014, LP&L proposed annual 5.75% Base Rate Adjustments until 2020 to address needed infrastructure improvements in preparation for the City’s future power supply solution. LP&L has proposed in the FY 2015-16 budget to eliminate the final year of adjustments and only continue the Base Rate Adjustments through 2019.
2016 projects include:
- Improving the reliability and capacity of the transmission grid throughout the city. New power line and substation construction related to a 69kV inner loop transmission loop and a 115kV outer transmission loop is crucial in order for LP&L to serve Lubbock growth.
- Upgrading and replacing aged customer service infrastructure. Investment in modern customer billing, workforce management and transmission and distribution grid information systems will allow LP&L to better serve our customers.
2015 projects include:
- Improving the reliability and capacity of the Southwest portion of the City. New substation power transformers and the replacement of four miles of 50-year old transmission lines will meet the growing consumer demand.
- Constructing a five-mile transmission line to serve the new Northwest Water Reclamation Plant and improve reliability for the growing medical complex in this portion of our community.
- Equipping the Massengale Generating Station with new automated controls to ensure continued efficiency in dispatching power into the power grid. The current controls at Massengale Station are outdated and must be replaced for the efficient operation of the complex-combined cycle combustion turbine.
2014 projects include:
- Improving the 40 year-old line serving Covenant Hospital, Texas Tech Health Science Center, University Medical Center and along Indiana Ave.
- Supporting reliability in the growth corridor in the Southwest portion of the city along Milwaukee Avenue.
- Launching the first stages of the Transmission loop, including land acquisition, design and engineering.
LP&L is continually looking for ways to cut costs. Over the past three years, LP&L has implemented over $2.23M in cost-savings with focused reductions in compensation, totaling $1.05M, cutbacks in production costs, totaling $1.09M (including water and sewer expenses, maintenance costs, and chemical supplies costs) and reduced customer service related expenses, totaling $85K. 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 efficiency.
We are committed to communicating with our customers and assuring them, we are carefully investing in projects that will ensure reliable and affordable electricity and sustain economic growth for years to come.
Standard Residential Rates
Service Availability Charge: $7.27 per month per meter
Summer Energy Charge: $0.03628 per kWh
Non-Summer Energy Charge: $0.02509 per kWh
Residential Electric Space Heating Rates
Service Availability Charge: $7.27 per month per meter
Summer Energy Charge: $0.04730 per kWh
Non-Summer Energy Charge: $0.01376 per kWh
Residential Net Metering Rates
Service Availability Charge: $27.40 per month per meter
Summer Energy Charge: (1,000kWh): $0.01163 per kWh
Summer Energy Charge: (>1,000kWh): $0.02115 per kWh
Non-Summer Energy Charge: (1,000kWh): $0.00357 per kWh
Non-Summer Energy Charge: (>1,000kWh): $0.01058 per kWh
Commercial – Small General Service Rates
Service Availability Charge: $12.20 per month per meter
Energy Charge: $0.01789 per kWh
Commercial – Primary General Service Rates
Service Availability Charge: $279.58 per month per meter
Energy Charge: $0.00051 per kWh
Demand Charge: $4.64098 per kW
Commercial – Secondary General Service Rates
Service Availability Charge: $25.72 per month per meter
Energy Charge: $0.00072 per kWh
Summer Demand Charge: $7.21308 per kW
Non-Summer Demand Charge: $3.85816 per kW
Your Electric Usage Explained
Service Availability - flat rate necessary to read your meter, calculate, mail and collect each bill; 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 to support additional electrical infrastructure to meet the peak demand for electricity.
Purchase Power Cost Recovery (kWh) - actual cost of electricity you use with no mark-up. This is a pass-through of wholesale power costs.
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 - City: 1.5% County: 0.5% State: 6.25%
Seasonal rate stabilization takes the guesswork out of our customers’ monthly statements by allowing LP&L to provide a predictable monthly rate.
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.
What is rate stabilization?
Rate stabilization allows LP&L to provide predictability in our customer’s monthly electric utility statements. With rate stabilization, our customers have one non-summer rate and one summer rate to cover LP&L’s cost of wholesale power (“Purchase Power Cost Recovery Factor”).
How does rate stabilization work?
Rate stabilization is a common industry practice. LP&L sets a non-summer rate to cover the estimated cost of wholesale power from October through May, and sets a summer rate to cover the estimated cost of wholesale power from June through September. By setting a stable rate each season, LP&L absorbs the volatility in the cost of wholesale power from its supplier. This ensures that the Purchase Power Cost Recovery rate is consistent throughout each season versus the former practice where this rate fluctuated on a monthly basis
How does rate stabilization affect my statement?
Rate stabilization takes the guesswork out of our customers’ monthly statements. Every month, customers pay for Purchase Power Cost Recovery. The Purchase Power Cost Recovery rate historically fluctuated each month as our supplier’s cost to produce electricity increased or decreased. The monthly fluctuations made it difficult for our customers to anticipate costs for energy usage. Rate stabilization means the Purchase Power and Recovery rate only changes between the summer and non-summer seasons, so customers are better informed. This practice is used in numerous cities, including Austin and San Antonio.
Could the Purchase Power Cost Recovery rate change during the non-summer or summer season?
In the unlikely event that wholesale power costs unexpectedly increase or decrease, the tariff includes a true-up mechanism. Therefore, if power costs unexpectedly drop, there could be a true-up to decrease the rate. Alternatively if power costs unexpectedly surge, there could be a true-up to increase the rate. In all cases, the rate will be set to bring in the appropriate revenues to cover LP&L’s wholesale power costs, with no mark-up.