Lubbock Power & Light’s relationship with Xcel Energy's Southwestern Public Service will not end in 2019.

Thursday afternoon, LP&L and SPS announced a two year agreement for LP&L to purchase 400 megawatts of power from SPS from June 2019 through May 2021. LP&L officials state the two-year contract will effectively cover all power supply needs through 2021.

David McCalla, the Director of Electric Utilities for LP&L calls the new contract a ‘transition contract’ as LP&L and the City of Lubbock move to become full-fledged members of ERCOT, the Electric Reliability Council of Texas.

“In September 2015, LP&L announced its intention to seek integration to the ERCOT market beyond the expiration of the total requirements contract with SPS in 2019, and since that time we have worked diligently to chart a course of seamless transition for our customers,” said David McCalla, LP&L Director of Electric Utilities.  “The signing of the transition contract today with SPS is an important step in securing affordable and reliable power for our customers as we work toward achieving our long-term power supply goals.”

Lubbock Mayor Dan Pope says the contract between LP&L and SPS is “an important milestone” for the city as Lubbock works to become a part of ERCOT.

“Today (Thursday) marks an important milestone as the City of Lubbock works to secure power for our citizens for generations to come,” said Dan Pope, Mayor of Lubbock.  “The long hours put in by LP&L leadership and the collaborative work by the Electric Utility Board and the Lubbock City Council have culminated in what we believe is a strong path forward.  We thank our partners at SPS for their work on this agreement and we are pleased to announce a stable and cost-effective source of power for LP&L customers while we work to join the majority of Texas as participants in the ERCOT market.”

Neither LP&L nor SPS officials released financial details for the new two-year contract.

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