LP&L lowers rates for summer 2020

This is a news release from Lubbock Power & Light.

LUBBOCK (April 21, 2020) – Lubbock Power & Light (LP&L) is lowering the power cost recovery factor (PCRF) portion of the electric rate for the summer. This is the sixth overall rate decrease in the past 36 months, resulting in substantial savings for all customers throughout the hottest months of the year when electricity use is at its highest. The PCRF is the amount LP&L pays to purchase or generate power, passed directly through to customers with no mark-up.

During the regularly scheduled April board meeting, LP&L Electric Utility Board voted unanimously to implement the electric utility staff’s recommendation for a rate decrease. The reduced rate is effective for all residential and commercial customers June 1 through September 30, 2020.

The rate reduction will also help lower costs for customers using more energy while staying home or dealing with the adverse financial effects of the novel coronavirus pandemic.

“LP&L is committed to providing our customers with safe, affordable and reliable power,” said David McCalla, director of electricity utilities. “We’re thankful we are in a position to pass on savings to our customers when they need it most.”

The rate reduction is possible due to LP&L negotiating lower wholesale power costs in current power contracts and low natural gas prices.

Below is a summary of the rate changes:

PCRF Rate Reduction	Rate 1	Rate 3
Winter 2019-20 to Summer 2020 Change	-18.1%	– 19.8%
Winter 2019-20 to Summer 2020 Bill Savings*	$44.16per 1,000 kWh	$48.52per 1,000 kWh
Summer 2019 to Summer 2020 Change	– 11.0%	– 12.0%
Summer 2019 to Summer 2020 Bill Savings*	$24.64per 1,000 kWh	$26.74per 1,000 kWh