The Electric Utility Board has voted unanimously to recommend that the city take over the cost of street lights in Lubbock.
The request still has to be approved by the City Council but if it is accepted, it would save LP&L $3 million this fiscal year.
"The whole cost of street lights had been assigned to LP&L whereas all of the citizens of Lubbock benefit from the street lighting whether they're LP&L customers or not," said EUB Chairman Greg Taylor. "In effect we're saying on the budget we would transition that cost back to the city budget over a three year period of time."
Taylor says the recommendation came from task force discussions about budget allocation between the city and LP&L.
"There are numerous items that are shared between the LP&L operation and the City of Lubbock," he said. "My understanding is the last time those allocations were studied was 10 years ago, so basically we want to make sure that we're updating that and making those assessments and inner fund charges accurately on an ongoing basis."
Under the proposal, Taylor believes LP&L would still handle maintenance of the lights in some way. There was also a presentation about LP&L's current bond rating, which is on the rise.
"They (Moody's) had us at negative and now we're at stable, which is very good," Taylor said. "All of the rating agency news was very good and Moody's in particular was a very good rating."
The board decided to table the discussion about the costs associated with the Ashcroft Law Firm LLC report as well as future actions. They also heard a presentation from Sharyland Utilities Inc. who discussed their proposed transmission line in the Lubbock region and they decided to address questions about Tri-Global Energy's business plan to develop projects in the Lubbock region at the next meeting.
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