Just ahead of the deadline for Lubbock Power & Light customers to choose a new electric provider, the Lubbock City Council agreed to a power contract for municipal facilities that officials say will save the city millions in energy costs over the next two years.
City of Lubbock Chief Financial Officer Blu Kostelich presented the contract with TXU Energy to the council during its regular meeting Tuesday night. He said the city was offered a rate of about seven cents per kilowatt-hour, not including transmission and distribution costs, for a 24-month term.
The contract was approved 7-0.
“Under this rate, that’s going to be roughly about a $1.7 million savings on an annual basis,” Kostelich said.
The City of Lubbock has about 900 meters it is responsible for paying for, including all of the city’s facilities and infrastructure.
“We have multiple buildings throughout the city; we have streetlights that are metered; we have traffic lights that are metered. Think all of your water and wastewater systems, all those pump stations,” Kostelich said. “It covers a wide array of city infrastructure.”