Lubbock Power & Light Selects Default Retail Electric Providers, POLRs

February 24, 2023

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Lubbock Power & Light has recommended to the City Council a selection of default retail electric providers (DREPs), voluntary providers of last resort (VREPs), and a provider of last resort (POLR) for its transition to retail competition

LP&L's recommendations remain subject to approval by the city council, which is to consider the recommendations on Feb. 28

As previously reported, the default REPs will serve customers in the LP&L service area who do not choose a retail electric provider during an open shopping period prior to the transition to retail choice in the fall of 2023. After an initial movement of non-shopping customers to DREPs, the DREPs will no longer be assigned any new customers (but will continue to serve their assigned customers until the customer chooses an alternative). After the initial DREP assignment process, customers who subsequently find themselves without a REP will be served by a provider of last resort (either a voluntary REP, or a backstop POLR, similar to the current POLR process in ERCOT)

For default REPs, LP&L is recommending designating the following REPs as DREPs:

Default REPs:

• Reliant Energy Retail Services LLC

• Octopus Energy LLC

• TXU Energy Retail Company LLC

LP&L staff noted that 11 REPs submitted applications to serve as a DREP. The top four respondents based on a previously reported scoring for the RFP were invited for interviews with LP&L. Champion Energy was the 4th-ranked DREP, which was not selected by LP&L. The other respondents were not identified.

As previously reported, LP&L has established that a customer assigned to a Default Retail Electric Provider will be provided a market-based, month-to-month product and will be able to select a Retail Electric Provider and switch away from a Default Retail Electric Provider without penalty

For voluntary POLRs (VREPs), LP&L is recommending designating the following REPs as VREPs:

Voluntary POLRs (VREPs):

• Reliant Energy Retail Services LLC

• Octopus Energy LLC

• TXU Energy Retail Company LLC

VREP service will be a month-to-month, market-based product, similar to the ERCOT process

The VREP terms shall continue until terminated by LP&L. Each VREP may seek to terminate the agreement upon 180 days notice

VREPs may limit the amount of POLR customers they choose to accept. Any customers not served by a VREP will be served by the backstop POLR

For the backstop POLR, LP&L is recommending designating Reliant Energy Retail Services LLC as the backstop POLR

The backstop POLR agreement with Reliant provides that Reliant, for backstop POLR service, shall use POLR rates established by the Public Utility Commission of Texas pursuant to 16 Texas Administrative Code § 25.43, and that Reliant shall use the approved, applicable rates for the Transmission and Distribution Utility (TDU) Service Area nearest to Lubbock where Reliant is providing POLR service, as they may be amended from time to time.

Reliant's term as backstop POLR shall continue until terminated by LP&L. Reliant may seek to terminate the agreement upon 180 days notice

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