Lubbock City Council not raising LP&L rates - KCBD NewsChannel 11 Lubbock

Lubbock City Council not raising LP&L rates

LUBBOCK, TX (KCBD) -

Lubbock Power and Light rates will not be raised for now. The LP&L board recommended a rate increase to the City Council Wednesday, but no action was taken.

That's because Councilman Victor Hernandez made a motion to consider the hike and it died for lack of a second.

The concern for LP&L is that they have been losing money for several months. Right now the company says it is negative $7 million.

Even though your eclectic bill will not increase for now, Councilman Floyd Price says that will have to change.

"Eventually we are going to have a rate increase. We are going to have it, because I don't see LP&L functioning with losing money every day," Price said.

LP&L says in March they had $9.8 million to spend on business operations. In April, that number was $5 million. If profits keep dwindling, LP&L explains they will have to tap into their $47.3 million reserve. If the savings decrease in that fund board chairman Mike Davis says they will have to take out loans.

"We could be borrowing money to operate and I can tell you I hate that. I am not a fan," said Davis.

Council members say LP&L should make up its losses in the summer months when customers are using more electricity. When the fiscal year ends on September 30th, the council says they will look at the budget and possibly decide again on the rate hike.

The proposed electricity rate hike would have increased LP&L's overall revenue 7%. Lubbock Power and Light Spokesman Chris Sims says the change in rate would have cost an average household an additional $10 a month.

Newly elected Mayor Glen Robertson served on the LP&L board for 14 months. During that time, he learned that although LP&L would predict a deficit for the fiscal year, surplus revenue would be made up through the summer months. The Mayor says he would not consider a rate increase until he could see the actual hard numbers when the year is over; not mere estimations.

Copyright 2012 KCBD. All rights reserved.

  • Local News on KCBD.comNewsMore>>

  • Israel's Lieberman blames Hamas over Gaza deaths

    Israel's Lieberman blames Hamas over Gaza deaths

    Saturday, April 21 2018 1:44 AM EDT2018-04-21 05:44:10 GMT
    Saturday, April 21 2018 11:35 AM EDT2018-04-21 15:35:03 GMT
    (AP Photo/Adel Hana). Palestinian protesters evacuate a wounded youth during clashes with Israeli troops along Gaza's border with Israel, east of Khan Younis, Gaza Strip, Friday, April 20, 2018. Thousands of Palestinians joined the fourth weekly protes...(AP Photo/Adel Hana). Palestinian protesters evacuate a wounded youth during clashes with Israeli troops along Gaza's border with Israel, east of Khan Younis, Gaza Strip, Friday, April 20, 2018. Thousands of Palestinians joined the fourth weekly protes...

    Gaza health officials say 4 Palestinians, including 15-year-old boy, killed by Israeli army fire as thousands join fourth weekly protests on Gaza border.

    Gaza health officials say 4 Palestinians, including 15-year-old boy, killed by Israeli army fire as thousands join fourth weekly protests on Gaza border.

  • The Latest: Guests start arriving for Barbara Bush's funeral

    The Latest: Guests start arriving for Barbara Bush's funeral

    Saturday, April 21 2018 10:44 AM EDT2018-04-21 14:44:47 GMT
    Saturday, April 21 2018 11:06 AM EDT2018-04-21 15:06:05 GMT
    (AP Photo/Evan Vucci). Attendees arrive at St. Martin's Episcopal Church for a funeral service for former first lady Barbara Bush, Saturday, April 21, 2018, in Houston.(AP Photo/Evan Vucci). Attendees arrive at St. Martin's Episcopal Church for a funeral service for former first lady Barbara Bush, Saturday, April 21, 2018, in Houston.

    Guests have begun to arrive at St. Martin's Church in Houston for the funeral of former first lady Barbara Bush.

    Guests have begun to arrive at St. Martin's Church in Houston for the funeral of former first lady Barbara Bush.

  • Jeb Bush to eulogize mother, Barbara, in private service

    Jeb Bush to eulogize mother, Barbara, in private service

    Saturday, April 21 2018 12:04 AM EDT2018-04-21 04:04:04 GMT
    Saturday, April 21 2018 11:05 AM EDT2018-04-21 15:05:51 GMT
    (AP Photo/Evan Vucci). Mourners pause as former U.S. first lady Barbara Bush lies in repose during the visitation of former first lady Barbara Bush at St. Martin's Episcopal Church, Friday, April 20, 2018, in Houston.(AP Photo/Evan Vucci). Mourners pause as former U.S. first lady Barbara Bush lies in repose during the visitation of former first lady Barbara Bush at St. Martin's Episcopal Church, Friday, April 20, 2018, in Houston.

    As the outpouring of tributes continues for Barbara Bush, the general public can pay its respects to the former first lady.

    As the outpouring of tributes continues for Barbara Bush, the general public can pay its respects to the former first lady.

Powered by Frankly