In the state of Texas, most residents have a deregulated electricity market, meaning that they can choose their own electric company. Meanwhile, residents in regulated areas don’t have a choice. After years of getting electricity from a single company, Lubbock Power & Light (P&L), Lubbock residents will soon be able to choose from multiple retail electricity providers.  

With winter storms and rolling blackouts affecting the Texas electric grid, leading to instances of severe power outages in many areas, it’s natural to wonder what Lubbock electricity deregulation means for you. How reliable will your electricity options be once Lubbock switches to the Electric Reliability Council of Texas (ERCOT) electricity grid?  

Since residents who don’t make a choice will be stuck with a Provider of Last Resort, it makes sense to shop around and compare your options. Here’s what you need to know about Lubbock electricity deregulation and what to look for when choosing a new electricity plan. 

Why Is Lubbock, Texas, Switching to a Deregulated Energy Market? 

For the past decade, if you lived in the city of Lubbock, Texas, you could only get power from one electric company: Lubbock Power & Light. LP&L got its electricity from two sources: its own power plants and the Southwest Power Pool (SPP).  

The Southwest Power Pool isn’t part of the main Texas grid, but it shares electricity with Nebraska, Oklahoma, Kansas, and several other states. Lubbock Power and Light had a 15-year contract with Xcel Energy to deliver power to Lubbock residents from the SPP.  

As the contract came to an end, LP&L looked for alternative options, and many Lubbock residents said they wanted more electricity suppliers to choose from. 

What Are the Benefits of a Deregulated Energy Market? 

A deregulated energy market is one in which retail energy providers can offer residents the choice between multiple electricity rates, energy plans, and contract terms. This is in contrast to a regulated market, in which residents can only get energy from a single electric utility company, often with fixed rates set by a utility commission.  

Most Texans live in a competitive retail market, but residents of Lubbock, El Paso, and most of the Panhandle do not. Advocates for energy deregulation say that it can lower electricity prices by increasing competition among providers.  

It also gives residents the opportunity to choose between more personalized electricity services, letting them pick the features they value most, such as renewable energy plans or free nights and weekends. 

When Does the Market Open Up to Residents? 

The switch to a competitive electricity market in Lubbock, Texas, is a gradual process. Lubbock Power & Light has already issued a call for retail energy providers to join the market, and customers will be able to begin shopping around in mid-2023.  

In late 2023, your new electricity provider will read your meter and begin charging you for electricity. Customers will get one last electricity bill from LP&L. 

What Happens If You Don’t Choose an Energy Provider? 

If you don’t choose a new energy provider once Lubbock electricity deregulation begins, you might be in for a surprise. For one thing, you won’t be able to stick with LP&L. Why isn’t that an option? Because LP&L will no longer sell electricity to customers once deregulation is complete (although they’ll still be the ones in charge of maintaining the infrastructure).  

If you haven’t selected a new energy provider, you’ll be assigned one. These back-up providers are known as Providers of Last Resort, and they usually charge higher rates compared to other electricity choices.  

That means it benefits you to shop around and compare providers once electric competition arrives in Lubbock, Texas. 

Why Is Lubbock Moving to ERCOT? 

Lubbock Renewable Energy Windmillssource

Consumer choice wasn’t the only reason for bringing deregulation to Lubbock. Another factor behind the switch is that more and more people are moving to Lubbock, Texas. Lubbock Power & Light needed to be able to provide more power in order to keep up with its growing population of more than 260,000 residents.  

With the Xcel Energy contract ending, LP&L could have chosen to build a new power plant and stay connected to the SPP. Instead, they decided to join ERCOT, which operates the main power grid in the Lone Star State.  

The ERCOT grid already has around 300 retail energy providers, so many of them will be able to start offering services to Lubbock residents. 

Call Just Energy at 866-550-1550 for Great Energy Rates

Is Lubbock on the ERCOT Grid? 

Lubbock Power & Light has started connecting residents to the ERCOT grid, but it hasn’t finished yet. As of 2021, around 70% of Lubbock residents were connected to ERCOT, and the rest will be connected by the end of 2023.  

Switching to ERCOT isn’t just a matter of signing a contract. Because Lubbock, Texas, is located outside of the area covered by the ERCOT grid, the Oncor Electric Delivery Company had to install a series of new transmission lines. 

When Did Lubbock Switch to ERCOT? 

The switch to ERCOT has been in the works for a while now. LP&L first announced this plan in 2015, long before the 2021 winter storm raised concerns about the reliability of the Texas power grid. With many power plants unable to generate electricity, this emergency demonstrated the need to weatherize the state’s energy grid.  

Still, Lubbock pressed ahead and began building the necessary infrastructure and connecting more than 70% of customers to ERCOT.  

In 2021, the board of LP&L voted for deregulation, rather than remaining the energy provider through which consumers could access the ERCOT market. 

What Area Does ERCOT Cover in Texas? 

ERCOT has been operating the Texas power grid since 1996, and it has overseen the retail electricity market since it launched in 2002.  

According to ERCOT’s website, it covers around “75% of the land area in Texas,” including major population centers like:  

  • Houston 
  • Dallas/Fort Worth 
  • San Antonio 
  • Austin 

It doesn’t extend to Northeast Texas, Southeast Texas, or the El Paso region. These areas are connected to other grids outside of the state. 

What Are the Deregulated Areas of Texas? 

The deregulated areas of Texas mostly overlap with the ERCOT grid, but they aren’t exactly the same. For example, Austin is part of the ERCOT grid but has a regulated electricity market with its own municipal and cooperative energy providers.  

Deregulated areas include Houston, Dallas, Corpus Christi, and San Antonio, while regulated areas include Austin, El Paso, and Amarillo.  

As of late 2023, Lubbock, Texas, will join the deregulated market. 

Where Does Lubbock Get Its Electricity? 

Lubbock Texas Nightime Shot of Energy Windmillssource

Until recently, Lubbock Power and Light maintained its own power plants capable of generating up to 285.5 megawatts of power from fuels like gas and diesel.  

It also bought additional electricity from Xcel Energy, around 7% of which came from wind power, according to the Lubbock Economic Development Alliance.  

Moving forward, LP&L will continue to generate some of its own power, and it will buy additional power from the ERCOT grid. ERCOT generates 61% of its electricity from fossil fuels and 28% from renewable energy sources like wind and solar. 

Why Is Lubbock Growing So Fast? 

The Lone Star State’s population reached 30 million in 2022, making Texas one of the fastest-growing states in the U.S. Lubbock alone has a growth rate of around 7%.  

But people aren’t moving to Lubbock to retire. Lubbock has a median age of 31, and it was one of the top 20 cities for millennials to move to in 2019.  

People are moving to Lubbock because of its low cost of living and strong economy. As the economic and cultural center of the region, Lubbock is nicknamed the “Hub City” and offers plenty of opportunities for residents when it comes to jobs, education, and entertainment.  

Is Lubbock on the Texas Grid? 

Lubbock is in the final stages of connecting to the Texas grid. By the end of 2023, all Lubbock residents will be able to get power from ERCOT’s transmission lines. This means that, in times of high demand for energy, residents should pay attention to announcements from ERCOT and attempt to reduce their energy usage.  

Regulatory bodies have introduced new weatherization requirements to prevent a repeat of the 2021 power outages. These include steps such as protecting critical equipment so power plants can continue to operate in the event of a storm. 

How Do You Switch Energy Providers in Lubbock, Texas? 

Lubbock electricity deregulation means that residents will be able to choose their energy provider beginning in mid-2023. In most deregulated areas of Texas, switching energy providers is as simple as signing up for a plan with a new provider. The new company will inform your current energy provider that you’ve switched to a new plan, and you’ll receive one final bill.  

LP&L will inform customers when it’s time to make the switch. You’ll have an opportunity to choose a new provider, or else you’ll be placed with a Provider of Last Resort.  

After deregulation, you’ll still be able to switch providers, but you may have to pay an early termination fee if you’ve signed up for a long-term contract. 

Electric Plans and Rates? Get the Best one for You! Call Just Energy Today 866-550-1550

What Types of Energy Plans Will Be Available in Lubbock? 

Deregulated markets offer more plan options than regulated markets. You’ll be able to choose from fixed-rate plans with a flat rate per kilowatt-hour, or variable rate plans in which the price of electricity goes up and down with market rates.  

You may also be able to choose from multiple contract terms, such as a 12-month, 24-month, or 36-month contract. Other options include green energy plans, seasonal discounts, or free electricity on nights and weekends.  

Be sure to read the fine print and choose the plan that’s right for you. A variable-rate plan could lead to high energy bills if the cost of energy goes up, while a 36-month contract might result in a steep cancellation fee if you move to a new city. 

What Is the Electricity Facts Label (EFL)? 

The Public Utility Commission of Texas requires retail energy companies to provide customers with an Electricity Facts Label (EFL) for every plan.  

This standardized format makes it easy to compare electricity rates from different providers so you aren’t surprised when you get your energy bill. 

Will Lubbock Electricity Deregulation Lower My Energy Bill? 

Lubbock Electricity Deregulation Lower My Energy Billsource

Lubbock, Texas, will transition to a deregulated energy market in 2023, giving residents more options when it comes to choosing an energy provider. Deregulation should result in lower energy prices as retailers compete to provide the best prices in Lubbock.  

However, you’ll still need to do your research and choose the right plan for you based on your home energy usage. Learn more about calculating energy usage here. 

Brought to you by justenergy.com

All images licensed from Adobe Stock.
Featured image:

Our Customers Have Spoken

4.1 Star Rating from 4760 Reviews
Consumer Affairs   Google Reviews

Simplicity Meets Speed:
Enroll in Under 5 Minutes

Or call us directly at 866-550-1550