Lubbock Power & Light released a statement today that said they are aware of the unusually high electric bills reported by statewide media.
According to the statement, LP&L rates are not subject to the short-term fluctuations mentioned by the media in other regions. This is because of how LP&L’s rates are structured and approved by the Lubbock City Council.
Customers who experienced a bill spike typically have variable price billing, therefore make them vulnerable to the unexpected price swings from the wholesale energy market, according to the statement.
The rates by LP&L are fixed for both winter and summer, and all changes must be thoroughly reviewed and authorized by the applicable governing bodies, according to the statement.
All customers in the area are billed by their actual energy usage, measured in kilowatt hours, which is recorded on their electric meter, according to the statement. No electric use record will be made in case of a power outage during a storm event since electricity will not flow through the meter.
All LP&L customers only pay for power they use, and it will be charged at the existing rates approved in the rate tariff signed in Oct. 2020, according to the statement.
The electric grid in Lubbock performed well despite the severe snowstorm, with new lines and substations in service to handle the surge in usage on the system, according to the statement. The outages experienced by some customers on Feb. 16 and Feb. 17 were controlled rotating outages required by the Southwest Power Pool to help maintain the grid.
Power Cost Recovery Factor, or “pass-through rate”, is the largest portion of the monthly charges by LP&L, according to the statement. The price customers pay is what it costs to purchase or make power for the community with no mark-up.
Power is purchased by the company through power contracts with wholesale providers, with events like the previous storm in mind, according to the statement. These power contracts are still in effect, and shields customers of the company from sudden swings in the wholesale power market cost.
LP&L will evaluate the long-term impacts stemming from the events of the past week and the electric utility will have a better indication of the long-term impact, if any, on the PCRF after the company is done reviewing the statistics and make recommendations to the LP&L Electric Utility Board, according to the statement. Unforeseen costs are controlled, and LP&L will continue to work to avoid rate impacts from storm events like this one.
Any questions and concerns by citizens can be directed to firstname.lastname@example.org or (806) 775-2509, according to the statement. LP&L encouraged people to keep themselves updated with news about the company via Twitter, Facebook and its website.