City of Lubbock, Texas Tech System choose new retail power provider
Just ahead of the deadline for Lubbock Power & Light customers to choose a new electric provider, the Lubbock City Council agreed to a power contract for municipal facilities that officials say will save the city millions in energy costs over the next two years.
City of Lubbock Chief Financial Officer Blu Kostelich presented the contract with TXU Energy to the council during its regular meeting Tuesday night. He said the city was offered a rate of about seven cents per kilowatt-hour, not including transmission and distribution costs, for a 24-month term.
The contract was approved 7-0.
"Under this rate, that's going to be roughly about a $1.7 million savings on an annual basis," Kostelich said.
The City of Lubbock has about 900 meters it is responsible for paying for, including all of the city's facilities and infrastructure.
"We have multiple buildings throughout the city; we have streetlights that are metered; we have traffic lights that are metered. Think all of your water and wastewater systems, all those pump stations," Kostelich said. "It covers a wide array of city infrastructure."
Because of the constantly changing rates on the open electric market, city officials did not know what they might be offered until the morning of the meeting. City staff capped what they were willing to pay at around eight cents for 60 months, the agenda noted.
The Texas Tech University System also chose TXU Energy as its retail provider for the system, including the TTU and the Health Sciences Center campuses, according to a recent news release from TXU. The company did not release specifics of the deal, but the release noted the multi-year partnership includes an investment in scholarships and discounts for energy efficiency projects.
Texas Tech Athletics and the Texas Tech Alumni Association have a multi-year sponsorship agreement with TXU competitor Reliant Energy, and that company and its armadillo mascot are heavily featured at Tech sporting events.
This article originally appeared on Lubbock Avalanche-Journal: City, Texas Tech System choose TXU as retail power provider
