By James Clark - email
LUBBOCK, TX (KCBD) - Should Lubbock Power & Light raise rates on Tuesday? The LP&L Board says no but it's the City Council that has the final say.
LP&L will soon have to pay more for wholesale electricity because its provider, Xcel Energy, raised the rates. Some LP&L Board members argued in favor of raising the rates in April. But a majority of the LP&L Board would like to delay a rate hike until later this year or next year.
Just prior to LP&L's purchase of Xcel's Lubbock assets, it had more than $90 million in the bank and it has made profits of roughly $4.5 million so far this fiscal year. The most profitable months of May, June, July, August and September are still to come.
Some, like Board member Gail Kring, argued last week that LP&L can afford to eat the cost of higher wholesale power while some businesses in Lubbock cannot.
But everyone agrees that the rate hike is coming sooner or later. So, should LP&L spend money to put off the inevitable? That's the debate that City Council will have Tuesday before making a final decision on the electric rates.
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