Lubbock Power & Light’s proposed stipulations for the move to ERCOT were approved unanimously during a Thursday meeting of the Lubbock City Council.

The proposed agreement between LP&L and stakeholders in the Electric Reliability Council of Texas and the Southwest Power Pool would have LP&L pay $22 million dollars each year for the next five years to mitigate integrations costs.

LP&L would also make a one-time payment of $24 million to Xcel Energy. LP&L claims the costs of moving to ERCOT will in the long-run be outweighed by the expected yearly savings.

Terms of the agreement were originally discussed during a meeting between LP&L officials and members of the Public Utility Commission of Texas back on January 25th of 2018.

If the terms of the agreement are accepted by all parties at the Public Utility Commission’s meeting on February 15th, Lubbock will begin the process of moving a majority of LP&L customers into the system on June 1st of 2021.

Related Story: Lubbock Power & Light and Southwestern Public Service Reach Agreement in Principle for LP&L to Exit SPP and Join ERCOT