LUBBOCK, TX (KCBD) - NewsChannel 11 has new information on the big Lubbock Power & Light announcement. The city-owned electric company scheduled a press conference for Wednesday. So far, LP&L officials have been tight lipped as to the specifics.
NewsChannel 11 spoke with city council members Sunday. We learned that Lubbock Power and Light will announce they've reached their goal of $50-million in reserve funds. This could mean more money in the pockets of customers.
Mayor Tom Martin says this is a major milestone for the company because not long ago, in 2003, Lubbock Power and Light was $17-million in debt. At that time, the city had to eliminate 144 jobs and cut $20 million out of the budget. Shortly after that, in November of 2004, the city established an independent governing board of local business leaders to get the company back on track.
Since then, LP&L has paid either no franchise fee or a reduced franchise fee to the city each year. Now, they will pay the full franchise fee to the city coffers of a little more than $6 million.
Mayor Martin says this will add about $1 million to the city's general budget. This could mean a higher rebate for customers, which is currently one percent. Martin says, "Hopefully, now that they've reestablished their reserves, Lubbock Power and Light will be able to increase that percentage of rebate to the customers."
In April, the Standard & Poor's bond rating agency bumped up LP&L's rating two full categories from a "BBB" to an "A-".
NewsChannel 11 will be at the news conference later this week, and bring you the latest.
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