Lubbock Power and Light
| LP&L logo representing Lubbock Power & Light Company emblem | |
| LP&L | |
| Company type | Municipal corporation |
| Industry | Energy |
| Predecessors |
|
| Founded | 1916 |
Key people | Joel Ivy (Director) |
| Products | Electricity and Public services billing |
| Revenue | Template:Gain$243.9 million USD (2017) |
| Owner | City of Lubbock |
| Website | lpandl |
Lubbock Power and Light (commonly known as LP&L) ranks as the third-largest municipal electric utility in Texas, providing electricity to more than 101,000 meters. The company manages an extensive network of power lines and operates three generating facilities located in and around Lubbock, Texas.
History
The initial private electric provider in Lubbock, the Lubbock Electric Light & Power Company, was established in 1909 but ceased operations shortly thereafter. Its successor, the Lubbock Light & Ice Company, was purchased in 1913 by local entrepreneurs who rebranded it as Malone Light & Ice Company. In 1915, Texas Utilities Co. acquired Malone.
Following unsuccessful negotiations over rates with Texas Utilities, the Lubbock city council resolved on December 21, 1916, to construct a municipal power plant. This facility became operational by September 1917 and laid the groundwork for what is now LP&L.
Between 1993 and 2003, multiple city councils diverted over $60 million from LP&L’s reserve funds for purposes unrelated to the utility. Coupled with six years of poor management resulting in a $22 million operational deficit, these actions nearly drove the utility into bankruptcy. To address this, the city restructured LP&L in 2004 by creating an independent board of directors. By 2010, the utility had resumed transferring funds to the city’s general fund.
On October 29, 2010, LP&L took over the meters and distribution infrastructure within Lubbock previously owned by Xcel Energy, ending more than sixty years of competition with Southwest Public Service Co., Xcel’s predecessor.
Switch to ERCOT
In March 2018, LP&L announced its intention to integrate the Lubbock power grid into the Electric Reliability Council of Texas (ERCOT), thereby opening it to competitive electricity markets. This strategy aims to deliver lower-cost power by avoiding construction of a proposed natural gas power plant—estimated at up to $700 million—originally intended to serve LP&L’s system.
Transitioning to ERCOT is projected to reduce wholesale electricity expenses by eliminating fixed capacity fees and generate additional revenue for Lubbock consumers via new transmission connections to ERCOT. Key advantages include:
- Access to West Texas wind resources alongside a diverse portfolio of generation sources including natural gas, solar, and coal.
- Enhanced grid reliability supported by over 570 generation units based in Texas, minimizing dependence on any single energy source.
- Regulatory oversight shifting from the Federal Energy Regulatory Commission (FERC) to the Public Utility Commission of Texas and state legislature.
- Entry into a marketplace comprising more than 1,800 participants involved in generation, sales, and transmission of wholesale electricity.
- Introduction of retail electric competition within Lubbock that could drive down consumer rates through increased options.
Despite FERC’s recent denial of approval for this transition, LP&L continues to pursue integration with ERCOT.
About
LP&L is responsible for the generation, distribution, metering, and billing of electrical services.
Leadership
- Joel Ivy, Electric Utilities Director
- Jenny Smith, General Counsel
- Andy Burcham, Assistant Director and Chief Financial Officer
- Blair McGinnis, Chief Operating Officer
- Chris Sims, Director of Grid Control and Compliance
- Matt Rose, Manager of Public Affairs and Government Relations
Electric Utility Board
Since November 2, 2004, LP&L’s activities have been governed by an Electric Utility Board tasked with financial supervision and enhancing operational efficiency.
Board Members as of May 5, 2023
- Gwen Stafford, Chairperson
- Edward E. "Butch" Davis, P.E., Vice Chairperson
- Eddie Schultz, Secretary
- Solomon Fields
- Dan Odom
- Dan Wilson
- Lewis Harvill Jr., P.E.
- Petra Gambles
- Dr. Gonzalo Ramirez
- Tray Payne, Mayor of Lubbock