The Lubbock City Council is set to vote on an advertising agreement between Lubbock Power & Light and Texas Tech University on Thursday.
This comes after LP&L's Electric Utility Board approved the agreement on Tuesday.
Spokesperson Matt Rose says LP&L has had a marketing agreement with the university in some form since 1996, but he says the Texas Tech is requesting some changes this year.
"Texas Tech requested that as a part of that purchase power agreement that there be an addendum that includes a marketing and promotional contract," Rose said.
Rose says it comes with a price tag of $125,000 a year and will increase five percent a year for six years, making the grand total $800,000.
But Councilman Jim Gerlt says he is not convinced this is the best thing for the citizens of Lubbock.
"My initial thoughts are, why do we need to do a marketing contract when LP&L is a monopoly in town?" Gerlt asked.
Rose says the money will only go towards educating their customers on energy conservation and it won't affect the rate they pay.
"The only messages that will be coming out of this marketing contract will be messages of how customers can more efficiently use electricity on their end of the meter in order to save electricity," Rose said.
Councilman Gerlt says he needs more information before he makes a vote.
"If I'm convinced that it's in the best interest of the rate payers of Lubbock to approve this addendum then I will vote for it. Right now I'm not convinced," he said.
The University's Chief Financial Officer, Jim Brunjes, issued a statement saying, "It would be inappropriate to discuss the contract publicly until the Board of Regents has been briefed and provided direction."
Board of Regents member John Steinmetz said, "We have not yet had an opportunity to discuss this matter as a board and therefore it would be premature for me to comment at this time."
The agreement still has to go through city council and the University's Board of Regents before it can take effect.
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