What Does Deregulation Mean for Lubbock, TX

Apr 4, 2023 | Energy Deregulation

What Does Deregulation Mean for Lubbock, Texas?

Attention Lubbock residents! Big news is on the horizon. Starting in October 2023, Lubbock will officially join the rest of Texas and become a deregulated retail electricity market. This means that residents will have the power to choose their electricity provider, allowing them to shop for competitive rates and plans that fit their unique needs.


As a leading retail electric provider in Texas, Energy Texas is thrilled to see this positive change coming to the Lubbock community! Competition leads to innovation and better customer service, resulting in more affordable electricity rates for consumers.


In this blog, we’ll break down what deregulation means for Lubbock residents, when and how they can shop for providers and the benefits of having the freedom to choose their electricity provider. So, let’s get started and explore how this exciting development will benefit you!


What Is Deregulation & the Freedom to Choose In Texas?

In Texas, the “Power to Choose” refers to the ability of consumers to choose their electricity provider in a deregulated retail electricity market. Before deregulation, consumers were required to purchase their electricity from a single, monopolistic utility company. However, in 2002, the Texas Legislature passed Senate Bill 7, opening the retail electricity market to competition.


Under the current system, consumers in deregulated cities of Texas have the freedom to choose from various retail electricity providers who compete for their business by offering different rates, plans, and features. This competition has increased innovation, better customer service, and more affordable consumer electricity rates.


Why Is Deregulation Beneficial?

With the “Power to Choose,” consumers are empowered with more control over their electricity costs, and deregulation has helped create a more efficient and competitive electricity market. Now residents of Lubbock can shop for and compare electricity plans from different providers and choose a plan that best meets their needs. They can also switch providers if they find a better deal or are dissatisfied with their current provider.


How Did Lubbock Gain the Freedom to Choose?

On February 22nd, 2022, the Lubbock City Council voted unanimously to support electric deregulation, paving the way for Lubbock Power and Light (LP&L) to transition to competitive retail electric service. LP&L aims to complete the transition by the middle or end of 2023.


Lubbock’s decision to join ERCOT was motivated by several factors, including cost savings. Lubbock was bound by contractual terms that required them to construct a new power plant for generating energy. This project would have come at a steep cost of several hundred million dollars, resulting in higher electricity prices for Lubbock residents for decades to recover the expenses.


However, instead of going through with building the new power plant, the Lubbock City Council had an alternative option – deregulation. By transitioning to the ERCOT grid, Lubbock could become a part of the group of deregulated cities in Texas, avoiding the need to build a new plant and the associated high costs.


LP&L will still be responsible for maintaining and owning transmission and distribution infrastructure, as well as providing metering services. However, customers will no longer receive their electricity bills from LP&L. Instead, the new competitive retail electric service model will allow customers to choose from various retail electric providers (REP) and their plans, pricing, and contract terms, with the REPs taking care of billing after the transition is complete.


What Options Do Residents of Lubbock Have?

After transitioning to a deregulated electricity market, residents will have more options for their electricity service. They will be able to choose from multiple retail electric providers (REPs) for their plans, pricing, and contract terms. These REPs will be responsible for billing once fully transitioned, and Lubbock Power and Light (LP&L) will no longer bill customers for electricity. However, LP&L will still be responsible for maintaining and owning transmission and distribution infrastructure, as well as providing metering services. The deregulated market will allow customers to compare and select the electricity plan that best fits their needs, budget, and preferences.


We know that having the ability to choose your electricity provider can make a big difference in your monthly bills. So let’s look at how you take advantage of this new opportunity. When selecting a retail electricity provider in the deregulated market in Texas, there are several essential things to keep in mind.


Compare Plans and Rates: Different retail electricity providers offer different plans and rates. Look for plans that match your energy usage and budget.


Contract Terms: Read the contract terms carefully. Some providers may offer introductory rates that increase after a certain period, so be aware of any possible rate hikes.


Customer Service: Consider the quality of customer service and support. Read customer reviews and ratings, and look for providers with positive, real reviews.


Renewable Energy: If you’re interested in renewable energy, look for providers offering green energy plans from power generated from renewable sources like wind and solar.


Fees: Be aware of any fees or charges that may be included in your plan, such as enrollment fees, early termination fees, or fees for using a specific payment method.


Or Keep It Easy With Energy Texas!

Or, you can skip all the homework and get clean, green, 100% renewable electricity at a fair rate from Energy Texas. We have you covered on all the above criteria along with a range of plans and services designed to meet your needs. 


  • Fair, fixed-rate plans help you save money on your electricity bill.
  • Renewable energy from wind and solar is our standard offering so you can reduce your carbon footprint.
  • Excellent customer service is here to answer your questions any time.
  • Community involvement is a priority for us and we work with donations and local organizations.


At Energy Texas, we are dedicated to providing our customers in Lubbock and all over the Lone Star State with affordable, reliable electricity service and excellent customer support. We would be honored to have the opportunity to serve you and help you save on your electricity bill. Check out our plans and get on board with Energy Texas!

Recent Posts