The winds of change are blowing through the energy market of Lubbock, Texas. By fall 2023, Lubbock’s residents will enjoy the benefits of a competitive electricity market as energy deregulation comes to this northwestern panhandle of the Lone Star State.
A deregulated energy market has already been available to around 85% of Texans for over two decades. Now, it’s scheduled arrival in Lubbock. But like all new kids in town, deregulation takes some time and effort to get to know.
That said, switching electricity companies isn’t as daunting as it may sound. But it is something Lubbock residents must do or risk paying more for their energy.
Luckily, Amigo Energy has been an energy provider throughout deregulated Texas markets. We’re here to help Lubbockites understand the process and navigate to an electric company and energy plan that suits them. What’s more, people could even reduce their energy bills. Join us as we walk you through the process.
Lubbock Electricity Deregulation: Why Is It Happening?
For over a century, Lubbock residents received their electric supply and electricity bill from Lubbock Power & Light (LP&L), a city-owned utility company. During that time, Lubbock Power and Light bought electricity from Xcel Energy and operated on the Southwest Power Pool (SPP) electrical grid.
Lubbock’s increasing population and energy demands meant Hub City leaders faced a choice: build a new power plant for Lubbock at a cost of about $750 million or look elsewhere for power. The new power plant would mean higher customer bills for 30-40 years.
The decision was made to connect to Texas’ main power grid, the Electric Reliability Council of Texas (ERCOT), which covers about 90% of the Texas state. LP&L built 150 miles of new transmission lines to stitch Lubbock into the ERCOT grid, alongside upgraded substations and smart meter installations for properties.
Since May 2021, around 70% of Lubbock residents have received electricity from the ERCOT electric grid. Once the remaining 30% switch to ERCOT in the fall, electric competition will come to town.
Why Lubbock Electricity Deregulation Is Important
It was on February 22, 2022, that Lubbock City Council voted unanimously in favor of electric deregulation. The main points about Lubbock’s new competitive retail electric service are:
- LP&L will cease sending its customers electric bills between July and October.
- LP&L will maintain the Lubbock grid’s transmission and distribution network, 107,00+ electric meters, 4,936 miles of wires, poles, etc., acting as a utility, plus operate three local power plants.
- People must still report power outages to Lubbock Power and Light.
- Residents and businesses must choose a new electric company between July and August 2023.
- Anyone who doesn’t choose a new electric supplier by the end of August will be assigned a provider of last resort. This ensures your home or business continues to receive electricity, albeit you may be charged at a higher rate than before or than is available on the deregulated market.
- Moving forward, people and companies can switch electricity suppliers within the deregulated market from October 2023 onwards.
- No one will lose their electric supply during the switchover.
How Does Electricity Deregulation Work?
Deregulation brings the chance to learn more about how electricity reaches our homes. It also means you’ll need to focus more on how much your energy bills cost and how and why choosing your electricity provider is essential.
Here’s a quick visual on how electricity flows from creation to use:
Generation > Transmission > Electric Companies > Customers
First comes generation: Power plants and renewable energy sources like wind farms and solar panels add wholesale electricity to the Texas power grid.
Next is transmission: Electric utilities maintain the grid, restore power after outages, and poles and transmission lines. These companies deliver electricity to residential customers and businesses and are also called Transmission and Distribution Utilities (TDUs).
The new part for the city of Lubbock is the electric companies, or Retail Electricity Providers (REPs). Where LP&L used to send energy bills, customers will get their electric bills from a REP or an electric company after deregulation. REPs buy wholesale electricity from those that generate it, then sell that electricity to customers and try to make a profit.
Amigo Energy is an example of a REP.
Essential Dates to Remember for Lubbock’s Switch to Deregulation
Lubbock residents need to keep an eye on their electric bills and remember these 2023 dates as the city switches to a deregulated market.
Mid-July to the end of August: Households and businesses can start to look and sign up for a new REP. The contract terms won’t begin immediately.
September: People who haven’t chosen their REP will be assigned a provider of last resort.
October: Lubbock’s energy market becomes deregulated, and customers will start their new contracts with their chosen REP or the provider of last resort.
The providers of last resort will be one from Reliant Energy, TXU Energy, or Octopus Energy.
Electricity Deregulation in Lubbock: Can I Opt Out?
The decision to deregulate the city of Lubbock’s electricity market means that all residents and businesses enter a competitive retail market in October 2023.
Anyone who doesn’t choose an electricity supplier during the enrollment period gets switched automatically to one of the providers of last resort. Remember — these last resort providers may charge some of the highest rates in the market.
Overall, the most important message is that Lubbock deregulation is happening. Choosing your electric provider is vital to avoid paying more for your energy.
How Do Businesses Look for the Best Electricity Rates in Lubbock?
Like residents, businesses need to choose their electricity supplier after deregulation occurs between mid-July and August 2023.
Many electric companies have specialized teams to help with commercial electricity rates. The best advice is to shop around and call some to get quotes. Alternatively, some companies use electricity brokers to navigate the market.
What Are the Benefits of Deregulation to Lubbock?
Deregulation’s primary benefit is electricity choice: people can shop around for a deal that suits their lifestyle. There are many options, from free electricity at night or on weekends to renewable energy offers. Many people can get a better energy offer by switching suppliers.
Lubbock electricity deregulation means a host of electric companies are keen to sign up customers this summer and winter.
Will Deregulation Mean Lower Electricity Rates in Lubbock?
It was back in 1999 that Texas Senate Bill 7 brought about the start of the deregulation of energy markets in the Lone Star State. The promise of lower electricity prices for customers was part of the pitch. Will the same happen in Lubbock?
Electricity bills usually show a kilowatt-hour price (kWh) for energy used, fees payable to utilities to maintain the power grid, taxes, connection charges, and more. The kWh price helps us compare what people pay for electricity.
In 2021, according to the U.S. Energy Information Service (EIA), the average kWh prices for electricity were:
- National U.S. average of 11.1 cents per kWh
- Texas state average of 9.14 cents per kWh
- City of Lubbock average of 11.97 cents per kWh (page 17)
However, a study found that while Texas’ average kWh prices remain lower than the national equivalent, deregulation has seen higher overall price rises in Texas compared to the rest of the country.
It’s vital to note that these are average prices. Some people in deregulated areas pay higher prices than necessary because they don’t shop around or want to avoid the hassle of switching suppliers. After 20 years of helping people switch suppliers in Texas, we can help make the move easy for you.
Lubbock Electricity Deregulation: Understanding Electricity Rates
As with most things in life, knowledge is key. Here’s how to ease into switching energy suppliers in Lubbock, Texas. The most important thing is to understand the electric companies’ language and your current electricity usage patterns.
Ask yourself the following:
- Do I use more power at night, during the day, or at weekends?
- How much electricity do I use each month on average?
- Am I looking for a long-term or short-term deal?
- Do I want price security?
- Will my electricity usage change soon, e.g., someone moving in or out of the home?
- Do I want an electricity plan with a renewable energy element?
Jot down the answers and compare them to our shorthand guide to electricity plans below.
A Simple Guide to Understanding Lubbock Electricity Rates
All Texas electricity plans are advertised in kilowatt-hours (kWh). In 2021, the average Texas household used 1,094 kWh every month.
Look at fixed-rate plans if you want the kWh price to stay the same throughout the contract term. Note that these “stability” deals usually have deposits, credit checks, and other conditions. Early termination fees often apply if you want to break the contract early; check carefully because these cancelation fees can cost several hundred dollars.
Flexibility comes with variable-rate plans whose kWh price changes month-to-month, going up or down. These are usually short-term energy solutions because there are no deposits, credit checks, or early termination fees.
Time-of-use offers can be enticing. For example, free electricity on weeknights or weekends may suit those who charge electric cars overnight. Check for conditions about using agreed amounts of electricity at other times.
Take care with minimum usage plans that offer lower kWh rates. Aimed at heavy electricity usage households, you must use an agreed amount of electricity every month or risk paying a higher kWh rate for everything you’ve used.
Finally, if you want to reduce your carbon footprint, look for green energy deals with electricity generated by renewable energy sources. The West High Plains region is home to more than 11,000 wind turbines and has enough wind energy to power up to nine million homes.
With your homework done, there are a couple more safety features to be aware of before taking the plunge.
Explore no deposit electricity from Amigo Energy.
Why Are Electricity Facts Labels (EFLs) Important?
The Public Utility Commission of Texas (PUC or PUCT) regulates the state’s electricity market. All electric companies supplying customers in Texas must be registered with the PUCT.
All these REPs must publish an Electricity Facts Label (EFL) for every product advertised. We recommend you read every EFL to check the terms and conditions. If it sounds too good to be true, it probably is. Don’t sign a contract with an electric company that doesn’t produce a valid EFL for its offers.
How Do I Look for Great Electricity Rates for Lubbock?
There are several ways to look for electricity plans in Lubbock:
- Use a Texas electricity price comparison website. Note that these will only show some offers available, not all.
- Research every available company and all their deals: this is time-consuming but could be worth the effort.
- Use the PUCT’s independent Power to Choose website, which makes it easier to compare products.
We recommend starting with the Power to Choose website. Based on your search query, it lists every offer from all available electric companies. You only need to enter your ZIP code and power usage and use the filters to see different deals. Please note that the website will start listing deals in Lubbock once deregulation occurs.
Pro tip: Our guide to using the Power to Choose tool is invaluable. Look at each company’s offer carefully and continue shopping afterward to find what suits you best.
Preparing for Lubbock Electricity Deregulation
By fall 2023, Lubbock will be the latest part of Texas’ energy market to welcome deregulation.
The century-old Lubbock Power and Light will continue to maintain the local grid and outages. However, the most significant change is for customers. Every resident and business needs to choose a new electric company and electricity plan when LP&L steps aside.
To avoid switching to a provider of last resort, which usually comes with high energy rates, people must start researching and choosing a new electricity supplier. The window opens in July and runs through to the end of August. Once complete deregulation begins in October, Lubbock customers can start switching suppliers.
We understand that Lubbock electricity deregulation brings change that may seem unsettling. But by taking the power to choose your electric plan in your hands, you may find you save on your energy bill. That sounds like a sensible and rewarding choice to us.
Brought to you by amigoenergy
All images licensed from Adobe Stock.
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