LUBBOCK, TX (KCBD) - Lubbock will take another step towards switching the majority of its customers to the ERCOT power grid on Thursday night, if city council approves terms of admittance the city expects to propose to the Public Utility Commission.
"We're considering today an item referred to us by the LP&L board to approve our entry into ERCOT and our exit from the Southwest Power Pool," Mayor Dan Pope said.
The city of Lubbock proposes to pay five annual installments of $22 million to offset part of the costs of the transmission lines connecting the city of Lubbock to the state's largest electric grid. These payments will start upon integration.
Lubbock is the only city to join the ERCOT market since deregulation.
The city proposes to settle all claims with the interested parties within this region of Southwest Power Pool with a one-time $24 million dollar payment. SPP was one of the intervenors before the PUC.
According to LP&L spokesperson Matt Rose, these terms represent an agreement between the major parties participating in Lubbock's case before the PUC.
Mayor Pope praised all parties involved in the negotiations:
"I want to say that I applaud the work of LP&L – first of all their staff and their board and the consultants they've hired to help with this. I also appreciate the Public Utility Commission and their staff and all the folks that are involved in this. We appreciate their willingness to look outside of the box because this is outside of the box."
In answer to the biggest question on ratepayers minds, the Mayor had this to say about future electric costs, "I think the thing I want to finish with is that we remind our rate payers that even with these stipulations, day one we believe we will pay less for electricity then than we do today. We feel very confident about that. We'll be entering the most competitive power market in the country, maybe the world."