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AI# 12031
Regular City Council Meeting
6.6.
10/24/2023:
Information
Agenda Item
Resolution - Lubbock Power & Light:
Consider a resolution regarding the process which will be followed for assigning customers to the entities previously selected to serve as the Provider of Last Resort (POLR) in the Lubbock Power & Light (LP&L) certificated area upon LP&L’s entry into retail competition.
Item Summary
In February of 2022, the Electric Utility Board of the City of Lubbock and the City Council of the City of Lubbock, at their respective meetings, adopted irrevocable resolutions to participate in customer choice for the customers of Lubbock Power & Light (LP&L). This set LP&L on the path to bring competition back to its customers.
After the commencement of retail electric competition, all customers will be served electricity by Retail Electric Providers (REPs) who are established in the ERCOT market and registered to serve in Lubbock. Should a REP no longer be able to provide electricity to its customers, it will be necessary to have a process in place to quickly transition customers to a new retail electric provider. The Retail Market Guide provided by ERCOT establishes this procedure.
ERCOT’s established procedures for mass transition have been used in the market for years, as recently as the events following Winter Story Uri. While the Retail Market Guide does govern the procedures for all Investor Owned Utilities and REPs operating in ERCOT, there is uncertainty whether the procedure applies to Municipally Owned Utilities.
If LP&L adopts the procedures in the Retail Market Guide for mass transition, it will ensure continuity of service for Lubbock customers, should a REP no longer be able to serve its customers.
Upon completion of entry to the Texas Retail Electric Market, Lubbock Power & Light operating as a Municipally-Owned Transmission/Distribution Service Provider (TDSP) voluntarily will follow normal TDSP processes detailed in Retail Market Guide 7.11.1 Transition Process of Competitive Retailer’s Electric Service Identifiers to Provider of Last Resort or Designated Competitive Retailer Pursuant to P.U.C. Subst. R. 25.43, Provider of Last Resort (POLR), or CR Voluntarily Leaving the Market.
Fiscal Impact
Adopting ERCOT’s process for mass transition has no fiscal impact to City Budgets.
Staff/Board Recommending
Joel Ivy, Director of Electric Utilities
Electric Utility Board
Attachments
Resolution - CC
Resolution - EUB
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