Many customers see higher LP&L bills, despite fixed rates
LUBBOCK, Texas (KCBD) — Many Lubbock Power & Light customers are reporting higher bills, though LP&L’s Matt Rose says rates haven’t changed.
Thirty percent of your LP&L bill is the base rate, which covers everything from maintenance to wages. The remaining 70% is called the purchase cost recovery factor, also known as the transmission rate.
“What it costs us to make or buy electricity and we pass it on to the customer without markup,” Rose said.
Rose says that rate is something LP&L can’t control, but she does her best by setting the rate twice a year, in October and June.
“In any given month, if our cost of natural gas is higher or lower than expected, our customers’ rates don’t change every month. They are static throughout the season and then we review and readjust,” Rose said.
But the transmission rate could be higher this year. In the summer of 2019, the company was paying 80 cents for natural gas, now it pays up to nine dollars per unit.
“We looked ahead, budgeted conservatively, and did our best to try to hold the line despite paying almost nine times more for natural gas than we did three years ago,” Rose said. .
Rose says the higher prices now aren’t necessarily due to gasoline prices.
“What you see as a difference in the cost of your bill right now is how much electricity you use or buy. It’s not your rate. It was maintained the same,” Rose said.
There are still ways to lower your bill, says Rose. You can do this by raising your thermostat six degrees when you leave for work in the morning, closing windows, doors, and turning off the lights.
“If customers can do some of these little things collectively, it can make a big difference in terms of how much energy the state as a whole uses,” Rose said.
Recently, ERCOT asks everyone to keep, but it is not the only one. Southwest Power Pool is also asking customers to conserve energy.
“It’s not just an ERCOT phenomenon, we’re seeing record-breaking heat across the central United States,” Rose said.
Rose says that although LP&L pays more for natural gas, it’s not reflected on your bill right now, but the gas price will eventually be passed on to the consumer.
“If they continue at this high level, which they should be doing, it will eventually reflect on the customer rate,” Rose said.
If you’re a business, Rose says there are still ways to save, like making sure the business has an updated air conditioning unit.
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