Lubbock Texas is deregulating in 2023. Here’s what you need to know about deregulation and how to choose an electricity supplier.
Is Lubbock Part of ERCOT power grid?
On May 30, 2021, Lubbock Power & Light (LP&L) connected 83,000 customers to the ERCOT grid. That represents approximately 70% of their customers. The remaining 30%, or around 24,000 customers, will be connected to ERCOT in May 2023.
Moving to the ERCOT grid is one of the steps toward participating in deregulation and electric choice.
Lubbock Electricity Deregulation: When Does Electricity Choice Start?
Residents and business owners in Lubbock will have electricity choice in fall 2023.
What’s the Timeline for Deregulation in Lubbock?
The move to deregulation in Lubbock started in 2015. In preparation for the move to ERCOT, LP&L invested in additional substations and transmission lines. They also installed advanced smart meters for each consumer.
On February 22, 2022, Lubbock City Council and the Electric Utility Board confirmed the city’s move to retail competition. That was the vote confirming the move to deregulation.
Citizens in that area will have electric choice in fall 2023 pending final state regulatory approval.
Once that occurs, all customers will need to pick a new retail electric supplier. LP&L will continue to serve as the utility company. They will maintain the poles and wires, work with retail electricity companies to bill you for delivery services, and respond in the case of an emergency. You’ll receive your electricity bill directly from the supplier you choose.
Stay informed about deregulation in Lubbock. Download our timeline of Lubbock deregulation and tips for electricity shopping. We’ll let you know when it’s time to shop for electricity.
What are the Benefits of Electricity Deregulation for Lubbock?
LP&L worked with the City Council and Electric Utility Board to make the decision to join ERCOT and deregulate.
Joining ERCOT has the following benefits for residents and businesses:
- Removes expensive fixed capacity charges
- Eliminates the need for a new power plant in LP&L
- Provides access to 570 other Texas power generation assets, instead of relying on three power plants.
- Keeps Lubbock under Texas regulation instead of regulation by the Federal Energy Regulatory Commission.
Once the city is fully deregulated, consumers will have access to a variety of electricity plans, including renewable energy plans. They will also be able to shop for fixed rate electricity plans.
The city will continue to own and manage its current power plants. However, after deregulation, that power will be sold on the ERCOT wholesale market. This could have additional financial benefits for the city.
Frequently Asked Questions about LP&L Electricity Choice and the Power to Choose
Lubbock consumers will have the power to choose their electricity provider in fall 2023.
No. All electric meters in LP&L will transition to a competitive market in fall 2023. If you fail to choose an electricity supplier during the enrollment period, you will be served by the Provider of Last Resort (POLR). POLR rates are typically the highest in the market. It’s likely that LP&L will be the POLR for the area.
City officials are working through a timeline for electric choice in Lubbock. But it should be similar to the most recent deregulation in Sharyland. Customers had a 2-month window to choose their provider. Both residential and commercial electricity rates in Lubbock will be available. You can shop electricity rates online to find a plan.
Once electric choice is open, you can find the cheapest electricity plan for your Lubbock home or business by shopping online. We recommend shopping only the no gimmicks fixed rate electricity plans. We call these Basic Electricity.
Plans that have tiered rates, bill credits and flat bill amounts look attractive. But the fine print behind them may leave you paying more than you expected. To find the cheapest electricity rates, always shop based on your monthly electricity usage. Sites like ElectricityPlans.com let you enter your usage to compare rates.
Business owners in Lubbock will have to choose their electricity supplier under LP&L deregulation in fall 2023. You’ll be able to lock in a fixed electricity rate plan to help with your budgeting. The process of electricity shopping may be confusing at first, since deregulation is new.
Working with an advisor or electricity broker can help you better understand the process. Businesses that spend under $2500 monthly can shop commercial electricity rates online once electric choice starts. Businesses that spend over $2500 monthly can work with an energy advisor to find the best electricity supplier.