LP&L seeks outside training, expertise on setting rates - KCBD NewsChannel 11 Lubbock

LP&L seeks outside training, expertise on setting rates

LUBBOCK, TX (KCBD) -

How can Lubbock Power & Light set electric rates for residential, commercial, non-profits, and industrial customers if it has no rate model?  For many years LP&L simply relied on Xcel Energy's rate model but over the course of time the city-owned utility moved further and further from Xcel's model for setting rates. 

"LP&L has not had a rate study," says a recent request for qualifications.  So, now LP&L has neither Xcel's rate model nor one of its own. 

The RFQ is an invitation for a professional firm to be hired, "to guide [city] personnel through the process … to prepare future rate studies independently."

Some of the items LP&L needs to learn are financial planning, cost of service, and rate design.

Former Mayor Marc McDougal is on the Lubbock Power & Light Board of Directors.  He says, "We have asked for a study on rate models." 

It's not the LP&L Board, but City Council that has final say on the rates.  McDougal was once on the City Council and he wants the elected officials to feel confident about LP&L's numbers.

He also wants LP&L fully prepared for a big problem coming up in about seven years.  Xcel Energy will, for the most part, stop selling wholesale electricity to LP&L. 

"We have a group that's helping us with our generation problem in 2019," McDougal says.  That might mean finding new wholesale partners or it might mean building power plants.  LP&L has three such generation facilities but they're not nearly enough to power the entire city.

For now LP&L has some of the lowest electric rates in Texas.  McDougal says, "We're 17 % below the Texas average."  He also says LP&L is "36% below the regional average."  Regional in this case means the greater Lubbock area.

Copyright 2012 KCBD.  All rights reserved.

  • Local News on KCBD.comNewsMore>>

  • Handcuffed Weinstein faces rape charge in #MeToo reckoning

    Handcuffed Weinstein faces rape charge in #MeToo reckoning

    Friday, May 25 2018 12:22 AM EDT2018-05-25 04:22:30 GMT
    Friday, May 25 2018 8:16 PM EDT2018-05-26 00:16:41 GMT
    (Photo by Chris Pizzello/Invision/AP, File). FILE - In this Jan. 8, 2017, file photo, Harvey Weinstein arrives at The Weinstein Company and Netflix Golden Globes afterparty in Beverly Hills, Calif. Law enforcement officials say Weinstein is expected to...(Photo by Chris Pizzello/Invision/AP, File). FILE - In this Jan. 8, 2017, file photo, Harvey Weinstein arrives at The Weinstein Company and Netflix Golden Globes afterparty in Beverly Hills, Calif. Law enforcement officials say Weinstein is expected to...

    Harvey Weinstein is expected to turn himself in to police in New York City early Friday following a seven-month investigation into sexual assault allegations.

    Harvey Weinstein is expected to turn himself in to police in New York City early Friday following a seven-month investigation into sexual assault allegations.

  • Exit polls suggest Irish voters have repealed abortion ban

    Exit polls suggest Irish voters have repealed abortion ban

    Friday, May 25 2018 2:32 AM EDT2018-05-25 06:32:46 GMT
    Friday, May 25 2018 8:15 PM EDT2018-05-26 00:15:45 GMT
    (Clodagh Kilcoyne/PA via AP). Presiding officer Carmel McBride looks on as a woman casts her vote in the referendum on the 8th Amendment of the Irish Constitution, on Thursday May 24, 2018, a day early for the people that live off the coast of Donegal ...(Clodagh Kilcoyne/PA via AP). Presiding officer Carmel McBride looks on as a woman casts her vote in the referendum on the 8th Amendment of the Irish Constitution, on Thursday May 24, 2018, a day early for the people that live off the coast of Donegal ...

    Voters throughout Ireland have begun casting votes in a referendum that may lead to a loosening of the country's strict ban on most abortions.

    Voters throughout Ireland have begun casting votes in a referendum that may lead to a loosening of the country's strict ban on most abortions.

  • Authorities: Suspected restaurant gunman had gun license

    Authorities: Suspected restaurant gunman had gun license

    Friday, May 25 2018 1:02 AM EDT2018-05-25 05:02:34 GMT
    Friday, May 25 2018 8:15 PM EDT2018-05-26 00:15:26 GMT
    (Bryan Terry/The Oklahoman via AP). Jennifer Stong hugs Tasha Hunt outside the scene of a shooting on the east side of Lake Hefner in Oklahoma City, Thursday, May 24, 2018. Stong was inside the restaurant when the shooting occurred.(Bryan Terry/The Oklahoman via AP). Jennifer Stong hugs Tasha Hunt outside the scene of a shooting on the east side of Lake Hefner in Oklahoma City, Thursday, May 24, 2018. Stong was inside the restaurant when the shooting occurred.

    Police: Man armed with pistol shot and wounded two customers at Oklahoma City restaurant before being shot dead by handgun-carrying civilian in parking lot.

    Police: Man armed with pistol shot and wounded two customers at Oklahoma City restaurant before being shot dead by handgun-carrying civilian in parking lot.

Powered by Frankly