LUBBOCK, Texas — Lubbock Power and Light said on Wednesday that it is decreasing its summer rate as compared to the summer of 2018.
Matt Rose with LP&L, said they how much a customer will save depends on their kilowatt usuage.
“Consumption is going to be going up over the next few months, so you can’t do a comparison
from April to July because your consumption will be different,” Rose said. “But if you look at it from this upcoming June to last June, and you use the same amount of electricity, you’ll see that drop in cost.”
For most customers, the portion of the bill that pays for wholesale power, the “power recovery factor,” will go down by 11 percent, LP&L said. For a smaller number of customers, the PRF will go down by 13 percent.
The PRF is tied closely to the cost of natural gas because much of Lubbock’s electric power is made in gas-powered plants.
The lower rate will begin on June 1, LP&L said.
LP&L issued the following summary:
Lubbock Power & Light 2019 Rate Summary
• LP&L is lowering the purchased power recovery factor (PPRF) portion of the electric rate for the fourth time in the past 24 months, which results in a substantial decrease in overall rates for all customers. LP&L purchases power and passes those costs directly to our customers. The lowering of the rate is due to decreasing natural gas prices and a beneficial new power contract that begins on June 1.
• Rate 1 applies to customers who have electric and natural gas service and comprise the majority of our residential customers. Rate 1 customers will see a 6.8% decrease in their monthly cost and should see total savings of $8.98 per 1,000 kilowatt hour usage compared to last summer.
• Rate 3 applies to customers who only have electric service. Rate 3 customers will see an 8.5% decrease in their monthly cost and should see total savings of $30.76 per 1,000 kilowatt hour usage compared to last summer.
Rate Decrease Breakdown:
Rate 1: Base Rate – $0.03381 Purchased Power Recovery Factor – $0.06939 to $0.061770 (11.0% Decrease) Total Rate – $0.09558 per kilowatt hour
Rate 3: Base Rate – $0.02921 Purchased Power Recovery Factor – $0.07055 to $0.061400 (13.0% Decrease) Total Rate – $0.09061 per kilowatt hour
• The new rates will go into effect on June 1, 2019.