If you live in Lubbock, Texas, it’s time to start shopping for a new electric provider.
The Lubbock Power & Light (LP&L) utility service area is officially deregulated — meaning the residents there now have to shop, compare and choose an electric provider. Prior to this change, Lubbock, as a regulated area, had only one available provider: its utility, LP&L.
“The completion of this historic move concludes over eight years of work and constitutes the largest migration of electrical load in state history,” LP&L said in a Dec. 2023 press release.
We’ll help you find the best electricity rates in your area
If you’re an LP&L customer, you have between now and Feb. 15, 2024, to choose a new electric provider or have one assigned to you.
But experts urge Lubbock residents to take the time to make a selection. Choosing the wrong provider or plan would mean experiencing some rate volatility from month to month, according to Chris Ercoli, president and CEO of the Retail Energy Advancement League, a national energy deregulation advocacy organization.
We’ll help you find the best electricity rates in your area
Though having a provider chosen for you isn’t the end of the world, Ercoli says it’s not that much different than the variable rate you had before with LP&L. But this move from regulated utility to deregulated energy choice empowers customers to choose an electricity product that best suits their profile, he said.
For example, if you’re an EV driver, Ercoli explained, some plans offer free night and weekend electric vehicle charging. “If you care about renewable energy, someone’s offering you perhaps 100% renewable energy products,” he said.
Here’s what you need to know.
What’s the new role of LP&L?
In March 2024, LP&L will transition to a TDSP, or transmission and distribution service provider, with the sole responsibility of delivering and transmitting power to homes and maintaining the meters, poles and power lines. LP&L will also be responsible for addressing power outages.
The supply of electricity will come from your new electric retailer or provider, which will also send your bill.
Deregulation may help customers avoid getting trapped with a utility’s bad investment decisions.
“If a municipal utility executes a contract for supply and they make a bad investment decision, that municipal entity passes all of that cost and exposure on to their customers,” said Ercoli. “That’s the risk of having a regulated entity that’s making energy decisions on your own behalf.”
In this new deregulated world (which was unanimously decided by the council), the people of Lubbock have options and can make their own decisions. Ercoli explained that now Lubbock customers no longer need to worry that their utility may make risky decisions. Instead, the new energy supplier you selected is the one that’s taking all that market risk. But they’re agreeing to give you a fixed rate, which takes the risk off you, Ercoli said.
Read more: Compare Electricity Rates in Texas
The power to choose: What to expect
Much of Texas is already deregulated, Lubbock is just now joining the ranks. The hundreds of electric providers in Texas will now be able to service Lubbock as well.
There will be a six-week window, from Jan. 5 through Feb 15, when residents can shop, compare providers and make a decision. March 2024 is when you can expect the official changes and your final bill from LP&L.
You can expect to see your new electric bill come from your new chosen provider, with new rates and terms sometime in March, according to the LP&L website.