Lubbock Power and Light Highlights Cost-Cutting Measures
Lubbock’s city-owned utility is searching for more ways to lower costs.
A press release sent Thursday morning outlines some of the ways that Lubbock Power & Light has worked to drop costs.
They highlighted the Electric Utility Board’s recommendation to pay off $5,640,000 of debt with high financing costs, and the Lubbock City Council approved redeeming certain outstanding obligations with higher interest rates.
“The 2003 bonds that are expected to be redeemed in November have an average interest rate of 4.6 percent,” said EUB Chairman Mike Davis. “By paying them off early, LP&L will avoid interest costs of about $1.6 million over the next 10 years.”
EUB member and former City Council member George Carpenter elaborated, saying that “A lot of people consider refinancing debt when interest rates are low, but when you can pay the debt off, that is the best way to go.”