Lubbock Power & Light delivery rates likely to decrease in November

The City of Lubbock's Electric Utility Board last week approved a measure that could lower customers' electric bills starting in November.

The EUB, which governs Lubbock Power & Light, approved a 2% decrease to the municipal utility's delivery service tariff, or the rate LP&L charges customers to deliver electricity. If approved by the city council at an upcoming meeting, the new rates will take effect Nov. 1.

When retail electric competition began earlier this year, Lubbock Power & Light became a transmission and distribution utility. LP&L is still responsible for getting power into customers' homes, and the utility's delivery rates are passed to the customer as a portion of the bill from their chosen retail electric provider.

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LP&L officials said the decrease was anticipated as part of the utility's plan to pay off costs related to its big switch to the competitive market.

"LP&L incurred costs to transition to this new model of retail electric service," the organization said in a news release Wednesday. "The utility’s stated goal is to consistently reduce rates, pay down debt, and cash fund infrastructure projects over the next six years."

Officials expect additional delivery rate reductions in the future.

“As LP&L continues to grow into our role of Lubbock’s electric delivery system, we are already seeing the benefit of cost savings and we are pleased to be passing those savings directly to customers,” LP&L Chief Administrative Officer Joel Ivy said in the release. “This decrease comes ahead of schedule and is expected to be followed by more in the coming years as we work to meet our goal of being the best in class and best in cost delivery system in the state.”

This article originally appeared on Lubbock Avalanche-Journal: LP&L delivery rates likely to decrease in November