LP&L proposes rate increases for 2017-2018 - KCBD NewsChannel 11 Lubbock

LP&L proposes rate increases for 2017-2018

(Source: KCBD) (Source: KCBD)

On Tuesday, Lubbock Power & Light staff presented a new budget for 2017 that calls for a rate hike.

In 2014, LP&L implemented a five-year annual 5.75 percent base rate increase in order to cover improvements.

"That way we can cover what we need to cover in terms of bringing these projects on board and completing them. While at the same time, only making incremental adjustments to the rate every year so our customers aren't victims of rate shock," said Matt Rose, spokesperson for LP&L.

Fiscal year 2017-218 will be the fourth year of this program. LP&L's proposal to the Electric Utility Board says the rate increase needs to five percent instead of the 5.75 percent rate increase.

LP&L says this slight decrease is a result of their rate management cost-cutting measures.

To date, they have cut more than $4.7 million annually.

Because of this, staff is recommending that the board eliminate the fifth year of the base rate adjustment.

"We still need to complete this fourth year," Rose said. "Although, it's not going to be the 5.75 percent, but it's lowered to 5 percent adjustment to the base rate and at this point in time, it does not look like it's necessary for that fifth year."

Staff is also recommending the board do away with the company's current winter and summer rates.

"Right now, we have a slightly higher rate that runs from June to September, and then in non-summer months, which are October through May, we have a slightly lower base rate," Rose said.

The rates for the summer months run an increase of about 3.6 cents per kWh, while the non-summer months run closer to 2.6 cents per kWh.

LP&L says this is because it costs more to run the system in the summertime.

In the proposed budget, LP&L is now looking to set one blended rate for the entire year, a rate of 3.381 cents.

With this blended rate, if customers see their bill go up in the summertime, it's simply because of consumption.

"If someone takes it upon themselves to be more efficient and to use less electricity, they ought to see that reflected in their bills one hundred percent," Rose said.

These rate adjustments are not set in stone just yet, they will have to be approved by the EUB board and then again by City Council.

If approved, these rate adjustments will go into affect October 1st, 2017.

Copyright 2017 KCBD. All rights reserved.

Powered by Frankly