The Lubbock City Council will consider whether to approve a purchase power agreement between Lubbock Power and Light and Texas Tech University on Thursday, Dec. 12.
As part of their purchase power agreement, LP&L would pay Texas Tech $125,000 over 6 years with a 5% increase each year. In exchange for the money, Mayor Glen Robertson says Tech would offer up several marketing opportunities for LP&L.
"They get some signage, mentioned in football games and spots in radio affiliates of Tech," Robertson said.
However, the agreement is raising some eyebrows since LP&L is the only electric provider in Lubbock. With no competition, many wonder why LP&L would need to advertise.
"Is there a need for LP&L to advertise since they are no longer in a competitive situation?" Robertson asked.
As it turns out, Texas Tech University does have options when it comes to electric providers. Since TTU is a state supported university, they are allowed to use other electric providers in the state if they choose. This means the purchase power agreement is a business deal that aids in the relationship between Texas Tech and LP&L.
Even though Mayor Robertson plans to vote against the measure, he says he understands why some would vote in favor. But, he would like to see it done in a different way, by forgoing the advertising deal altogether.
"I would much rather do some further negotiations with Tech and try to find a solution that makes everybody happy, keeps Tech as a customer, and, yet, keeps LP&L from having to advertise," Robertson said.
The city council will vote on the measure during Thursday night's city council meeting.
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