Lubbock Power and Light will purchase competing utility provider Xcel Energy's Lubbock assets. Announced at a 10 a.m. news conference today, reps say the entire distribution structure -- what it takes to get power to customers' homes -- will be purchased.
See press conference video by clicking on the box to the right.Pending regulatory approval, LP&L will issue $87 million in revenue bonds, paid back with additional revenues from new customers. At the press conference Mayor Martin stressed this will not cost utility customers more on their bill. Oct. 1, 2010 is the target date the 23 percent of Lubbock electricity customers who use Xcel to be switched to LP&L.
"There will be no increase in electric rates in Lubbock," said Martin."Let me say that one more time. There will be no increase in electricrates in Lubbock as a result of this transaction."
Xcel will remain in business and the company will continue to sell wholesale power to LP&L. The company will continue operations at Lubbock's Jones Station power generating plant. Xcel's area service center will also remain in Lubbock. Employees of Xcel will not be transferred to LP&L.
Reps with the purchase say this will improve efficiency; it will eliminate the need for duplicate utility poles and other infrastructure. Robert Taylor, president of the Downtown Lubbock TIF, says utilities have been the biggest hurdle to redevelopment. Marc McDougal with McDougal companies says overhead utilities are a significant issue slowing progress in the area.
Xcel occupies a downtown Lubbock building. It will be transferred to Texas Tech University, which needs additional space to continue to grow.
Much more on this story on FOX Talk 950 and later on FOX 34 News @ Nine.
