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Lubbock City Council, Utility Board Pass Resolutions Stating Intent To Offer Retail Electric Customer Choice at Municipal Utility LP&L

January 12, 2018

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The Lubbock, Texas City Council passed a resolution which expresses an "intent" to provide retail electric customer choice to the 470 MW of load at Lubbock Power & Light which the utility is seeking to have transitioned to ERCOT from SPP.

The LP&L electric utility board also adopted a similar resolution.

The resolutions were adopted unanimously by both the board and Council

LP&L, the third largest municipal electric utility in Texas, serves over 104,000 electric meters in the Lubbock area. It is seeking to have 470 MW ("Affected Load"), of its total load of approximately 600 MW, join ERCOT effective June 1, 2021. LP&L acquired distribution facilities serving approximately 170 MW in Lubbock from SPS in 2010. LP&L's partial requirements contract with SPS related to that 170 MW of load expires in 2044 and is not addressed by the proposed ERCOT transition.

About 70,000 customers would be included in the transition to ERCOT, and therefore receive customer choice under the Council's statement of intent

Specifically, the Council's adopted resolution, "hereby expresses its intent to provide customer choice as to the Affected Load, as contemplated by Chapter 40 of the Texas Utilities Code."

The resolution directs LP&L's Director of Electric Utilities to conduct or prepare, all necessary or advisable plans, evaluations and any other relevant activities surrounding customer choice allowed by Chapter 40 of the Texas Utilities Code, including without limitation, steps necessary to so implement customer choice, and to timely report the same to the City Council

The Council's adopted resolution further states, "that it is the intention of the City Council of the City of Lubbock to provide customer choice as to the Affected Load upon its interconnection with ERCOT and upon completion of the above-described due diligence activities, such activities to identify and describe the feasibility and requirements of providing such customer choice. Because the Affected Load is not now interconnected to ERCOT, and to allow for such due diligence activities, the evidence of intent resolved by the City Council of the City of Lubbock herein shall not be construed as a resolution of the exercise of the discretion to provide customer choice as to the Affected Load, as contemplated by Section 40.051 of the Texas Utilities Code."

The Council stressed during a work session yesterday that its statement of intent is not a final decision to pursue implementation of customer choice, and stressed that any such final decision will be informed by the study which will be performed as described above

The adopted resolution states, "the City Council of the City of Lubbock (the 'City Council') believes that customer choice and retail electric competition will benefit its citizens and enhance growth and development in Lubbock."

Customer choice wild be implemented no earlier than June 2021 if ultimately adopted

During a presentation, LP&L informed the Council that, should retail choice be implemented, LP&L would not act as a retail electric provider (including not acting as a competitive REP), and would not handle any billing functions with respect to retail electricity (for the Affected Load). LP&L would solely act as a TDU with respect to the Affected Load.

LP&L is also in the process of implementing AMI, though the roll-out will take several years

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