LUBBOCK, Texas — The Lubbock City Council approved $77.5 million Tuesday for a settlement with Southwest Public Service Company (Xcel).

The settlement is related to Lubbock Power and Light leaving the Southwest Power Pool to instead join ERCOT.  Roughly 70 percent of LP&L’s service area already joined ERCOT but LP&L had contractual obligations with Xcel which dated back before the decision to join ERCOT.

“Today’s action by the Lubbock City Council follows the LP&L Electric Utility Board’s action last week,” Lubbock Power and Light said on Tuesday.  It puts LP&L one step closer to getting all customers on ERCOT.  The next step will be customer choice.   

Customers will be allowed to choose a power provided and LP&L will simply provide the transmission lines to connect homes to various power companies in Texas.  

Tuesday’s settlement still needs a final approval from state regulators before it becomes official.

“LP&L can stay on course to make Lubbock the first city to voluntarily open up for retail electric competition in Texas since the creation of the competitive market in 1999,” LP&L said.  

“The proposed date for implementation of retail competition is fall 2023 barring any unforeseen delays in the regulatory approval process,” LP&L said.