Public Utility Commission approves LP&L entry to ERCOT system

Public Utility Commission approves LP&L entry to ERCOT system

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LUBBOCK (March 08, 2018) – The Public Utility Commission of Texas (PUCT) has approved the entry of Lubbock Power & Light (LP&L) to the Electric Reliability Council of Texas (ERCOT).  The approval of Lubbock’s integration to the ERCOT sets the path for Lubbock to be the first major Texas city to integrate to the ERCOT market in nearly twenty-five years.

“Joining our fellow Texans as part of the ERCOT system accomplishes the long-term goals we set forth when we began this process over three years ago.  It provides our customers a diversified portfolio of reliable and affordable Texas power for generations to come,” said LP&L Director David McCalla.  “Moving to ERCOT constitutes an important milestone for our utility and we appreciate the diligence shown by the commissioners throughout this process.”

LP&L submitted its application to integrate approximately 70 percent of its system into ERCOT on September 1, 2017 and in January the PUCT conducted a Hearing on the Merits to deliberate on whether Lubbock’s integration was in the public interest of all Texas ratepayers.  Today’s approval by the commissioners of the PUCT allows Lubbock to begin the next phase of the process which will include the approval and construction of transmission facilities in order to connect Lubbock to the ERCOT grid by June 1, 2021.

“This is an important day for the City of Lubbock.  We are securing our future energy needs for our ratepayers and putting our community in a position to continue its economic vitality for years to come,” said Lubbock Mayor Dan Pope.  “Joining the ERCOT market means partnering with our fellow Texans in one of the most competitive electric markets in the country.  I am excited for the benefits that will be seen by our citizens as a result of the hard work of leadership at LP&L and look forward to moving our citizens closer to the retail competitive environment.”

The transition by Lubbock’s municipal electric utility puts the city on the best possible path forward saving its ratepayers money and opening the door to retail electric competition in Lubbock.  Based on third-party studies, the anticipated annual savings achieved by moving the majority of LP&L’s system to ERCOT exceeds any stipulated agreements reached between LP&L and interested parties.  

“With the decision today by the Public Utility Commission of Texas, we now enter the next phase of a project,” said LP&L Electric Utility Board Chairman Greg Taylor.  “We are looking to the future as we work to interconnect to the ERCOT market and bring to Lubbock ratepayers the diverse energy portfolio and dynamic choice that can only be offered by the electric grid right here in Texas.  I am proud of the work of LP&L staff and city leaders in getting us to where we are today and now we charge forward to complete this vital project for our community.”

Further information on the full impact of Lubbock’s integration to the ERCOT market, including stipulated agreements by interested parties in LP&L’s public interest case and an independent cost/benefit analysis, is located at LPandL.com/ERCOT.   

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Lubbock Power & Light is the third largest municipal electric utility in Texas and has been serving the citizens of Lubbock since 1917. LP&L serves more than 104,000 electric meters and owns and maintains 4,936 miles of power lines and three power plants in and around the City of Lubbock. For more information about Lubbock Power & Light visit www.lpandl.com and follow the utility on Facebook and Twitter.

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