Comparing the Best Electric Companies in Lubbock, Texas 2024

Lubbock has joined the list of areas in the country with a deregulated electricity market. The shift happened when the city council voted in favor of deregulation on February 22, 2022. Included in the historic event is the transition of the area’s utility provider (Lubbock Power and Light or LP&L) to being one of Lubbock’s power providers, the first municipally owned utility to offer retail electricity service. 

The deregulation of the electricity market paved the way for the entry of more retail electricity providers in the area. This means Lubbock residents have more companies to choose from, giving them higher chances of finding the best electricity plan that meets their needs. 

As LP&L connected their customers to the ERCOT market, hopes are high that electric rates could drop for the city of Lubbock. Competition among the various energy providers could also lead to better service.  

Let’s discuss how you can get the best rates with the shift of Lubbock electricity to energy deregulation. 

Lubbock Electricity Rates

Competitive pricing is one of the benefits of deregulated electricity. As Lubbock electricity is now a customer choice market, the power companies serving the area strive to offer the lowest electric rates possible to attract consumers. 

If you plan to switch to a new energy provider, check out this list of the current electricity rates from several energy companies in Lubbock. 

Average Electric Bill in Lubbock, Texas

Electricity rates in the U.S. vary depending on several factors. These include where you live, the types of power plants that produce your electricity, and, sometimes, the time of day you consume electric power. The rates range from 6 to 71 cents per kWh.  

In Lubbock, residential customers spend an average of $210 on electricity a month, with the city’s electricity rate of 13 cents per kWh. This price is 42 percent less than the country’s average of 23 cents per kWh. Meanwhile, Lubbock residents consume an average of 1,035 kWh per month, higher than the national average of 877 kWh.   

When it comes to commercial electricity, the average rate in Lubbock is 6.07 cents per kWh, which is 25.6 percent less than the Texas average rate of 8.16 cents per kWh. This is 39.84 percent lower than the country’s average commercial rate of 10.09 cents per kWh. Commercial rates in the country range between 6.86 cents per kWh and 34.88 cents per kWh. 

Lubbock, Texas Electric Companies

You now have a wide selection of power providers in Lubbock resulting from the deregulation of electricity in the city. As such, you can choose which electricity company will best suit your needs. Here are some of the well-known power companies that operate in Lubbock. 

Factors That Affect Electricity Rates

Several processes need to happen before electricity can flow to your home and power your needs. All these processes cost money, which is factored into your per kWh rate. That’s the reason electricity rates fluctuate from day to day and vary from state to state. In areas with deregulated electricity like Lubbock, you can leverage the option to choose your electric company to save on your energy bills. 

Let’s look at the factors that somehow dictate how much you pay for your power usage. 

Fuels

Fuels are fundamental requisites of the electricity generation process. These fuels include traditional sources, such as coal, natural gas, and oil. With the shift toward renewable energy, solar, and wind have also become sources of electricity. 

For now, the country still depends mainly on traditional fuels to generate electric power. However, these conventional sources are fast depleting, which hikes their prices in the market. Global events also impact their costs. When their prices rise, electricity rates follow the same trend. Hopefully, the increasing shift to renewable energy sources will help bring down the per kWh electricity rate in the near future. 

Power Plant Prices

It costs millions to construct a power plant. Add the maintenance and operational expenses, and the amount that goes into these facilities can reach stratospheric levels. However, like fuels, they’re crucial components in the production of electricity. 

Regular maintenance keeps the plants running smoothly, ensuring a reliable electricity supply. This rationalizes the amount that goes into the plants’ upkeep even though it adds to the per kWh rate you pay for your electricity.  

Transmission and Distribution Area System

The transmission and distribution infrastructure brings the generated electricity to homes and businesses. Without these facilities, you won’t have electricity. Like power plants, however, building and maintaining the infrastructure involves a significant amount. 

Power lines and poles, transmission towers or relay stations, and other equipment that bring electricity to consumers also break down occasionally. Repairing and replacing these components incur considerable expense, which goes into the pricing of electricity. 

Area Regulations

Area regulations aim to protect consumers from misleading rates and hidden charges. The state and local agencies can control or dictate electricity prices in states with regulated electricity. Meanwhile, in states with deregulated energy markets, competition plays a significant role in dictating the per kWh rate. To attract business and residential customers, power providers try to bring their rates as low as possible.   

Weather Conditions

The weather conditions affect both the production of the electric grid as well as the power demand. Extremes of hot and cold, for example, hike the need for electricity due to the use of air conditioners and heaters.  

Extreme weather also impacts production. Severe storms could damage power stations, snap power lines and topple power poles. These impacts limit the electricity that gets to consumers. 

Following the law of supply and demand, prices rise when the supply is low, and the demand is high.  

Types of Electricity Plans in Lubbock, Texas

To pick the best electricity plan for your home or business, you’ll need to consider more than the rates you’ll pay. In the city of Lubbock, you can choose from various plan types. Each plan has pros and cons, and what works for other consumers may not work for you. 

The first step in determining if an electricity plan will fit your needs is finding out what it offers. Let’s talk about your options for energy plans in Lubbock. 

 Fixed-Rate Plans

A fixed-rate plan is an attractive option if you value price stability and peace of mind when it comes to your electricity expenses. That’s because fixed-rate plans lock in your per kWh rate for the contract’s duration. So even if prices in the market plunge or surge, your rate remains the same. This makes it easy to budget your utility expenditures. 

With a fixed-rate plan, you avoid bill shock or receiving a higher-than-expected electric bill. However, this plan type often requires you to pay a termination fee if you opt to switch to another provider before the expiration of your contract. 

Variable-Rate Plans

We keep mentioning that electricity prices fluctuate, sometimes from one minute to the next. With a fixed-rate plan, you don’t feel the effects of these fluctuations while your contract with your energy provider is in effect.  

You won’t enjoy the same advantage with a variable-rate plan, where your per kWh rate depends on the price of electricity in the market. During periods of low demand, typically when the weather is mild (spring and autumn months), you may have lower-than-average rates. However, the rates often rise during the summer and winter when cooling, and heating needs drive up demand, which will hike your electric bill.

Prepaid Energy Plans

Living in areas with deregulated electricity gives you plenty of options regarding energy plans. One of those choices is prepaid electricity. As its name implies, with prepaid electricity, you pay for electric power before you use it, and you reload your account as your balance decreases. It’s pretty much like having a debit card account. 

It might not be the plan of choice for those who want to save on their electricity costs, as the per kWh rate is often higher than traditional postpaid plans. Still, it could be a good fit for those who want to avoid the commitment of a contract or the hassle of a credit check. Prepaid electricity plans also give consumers total control over their power usage. Thus, it could work for you if you want to limit your consumption to a specific level.   

Business Energy Plans

Residential customers aren’t the only ones that benefit from the deregulation of the energy market in Lubbock, Tx. Business owners also now have access to business energy plans with reasonable rates.  

By opting for this type of plan, businesses in the city can sometimes avail of freebies and cost-saving opportunities offered by power companies for commercial consumers. Some of these are free energy audits and customized quotes that address the usage level or needs of the business. Not all of these are available for residents in the city, but you can always reach out to various providers to ask what they offer.  

Green Energy Plans

Are you an advocate for the environment and want to reduce your home’s carbon footprint? Electricity coming from renewable energy may just be what you’re looking for. Solar and wind are the most common sources of green energy in Lubbock. 

Solar panels generate electricity from sunlight while wind turbines harness the power of moving wind and use it to produce electric power. Both sources are self-replenishing, which helps conserve dwindling fossil fuels traditionally used to generate electricity.  

Energy Deregulation in Lubbock, Texas

As a result of the energy deregulation, LP&L transitioned from being solely a utility provider to one that offers retail electricity. Along with the company, other power providers now operate in the area. This means you have a more comprehensive selection if you want to switch providers.  

Benefits of Energy Deregulation

The deregulation of electricity in the city brings several advantages to Lubbock residents. These include the following: 

• More affordable rates: With numerous companies competing for customers, each one strives to lower its rates as much as possible to attract more consumers. The competitive pricing allows you to pick the best price. 
• Better service: Along with competitive rates, high-quality customer service is one of the ways to entice consumers to switch to a particular company. That’s why many providers in the city exert extra effort to provide excellent service. 

• Renewable or green energy options: Power companies strive to bring something different to the table to encourage new business. Offering renewable energy plans is one innovation not previously available to energy consumers. 
• Personalized plan options: Electric companies have become more flexible in addressing the needs of their consumers. A customized plan option takes into account the customer’s usage level, pattern, and budget. 

How To Find the Best Energy Plan?

The transition to deregulated electricity gives Lubbock residents the power to choose their energy provider, and many may want to switch to a new company. If you’re one of them, keep in mind that the rates, though important considerations, should not be your only reason for choosing a particular energy plan or company. 

Other factors to consider include the following: 

• Contract length (one month, two months, 12, 24, or 26 months, etc.) 
• The type of electricity used (traditional, renewable, or a mix of both) 
• The kind of electricity plan (fixed-rate, variable-rate, prepaid, etc.) 
• Extra fees (early termination charges and the like) 
• Freebies (free energy products or energy audits) 

How To Switch Your Electricity Provider?

Switching to a new electricity provider need not be a challenge. These steps can help you find the best plan and provider in the area. 

1. Shop around: With so many electric companies servicing Lubbock, there’s one that will tailor-fit your needs. Enter your zip code on our website to see a list of the best companies in the area. Compare the per kWh rate of the different energy companies to see which one offers the best deal. 
2. Review the plan information: Carefully read the details, including the fine print. Watch out for gimmicky rates and tricky terms. 
3. Contact your chosen provider: Reach out to the company of your choice. Be ready to provide personal information, such as billing accounts and the like. 
4. Make the switch: The new provider will handle the details and inform your old provider about the switch. 

About Lubbock, Texas

Lubbock is in the portion of the Lone Star State, one known historically and geographically as the Llano Estacado. It is the 10th most populous city and has seen a 4 percent growth in the past 5 years. 

Nicknamed the “Hub City,” Lubbock is the economic, educational, and healthcare hub of the region. It’s home to Texas Tech University, the sixth-largest college in terms of enrollment in the state. 

Lubbock was founded in 1890 and was named for Colonel Tom S. Lubbock, a former Texas ranger and brother of Francis Lubbock, a governor of Texas during the Civil War. It was incorporated on March 16, 1909, and in that same year, the first railroad train arrived in the area. 

Popular ZIP Codes

You’ll have plenty of choices to live in if you’re moving to Lubbock, what with the number of great neighborhoods in the area. Here are the zip codes for the best places to live in Lubbock. 

• 79424
• 79407
• 79423
• 79414
• 79413
• 79416
• 79382
• 79363
• 79410
• 79411

Living and Moving to Lubbock

There are many reasons why residents love living in Lubbock. This city, with a population of about 261,000 people, ranks high on the list of livable cities in the country. The area offers a suburban feel and a place to breathe with its many parks and greenery. In fact, it has the distinction of having more neighborhood parks per capita than any other city in Texas. 

What’s more, the cost of living in Lubbock is 2 percent lower than the state average and 9 percent lower than the national average. Housing is 16 percent cheaper in the city than the country’s average, and utilities are 8 percent lower. 

Economic growth in Lubbock comes from various industries, including education, food processing, health services, agribusiness manufacturing, and information technology. 

The area is the birthplace of rock ‘n’ roll legend Buddy Holly, and if you’re into wine, you’ll enjoy the products of award-winning wineries in Lubbock.  

FAQs

Conclusion

Lubbock’s electricity rates are lower than the country’s average. That means you’ll get lower energy bills for the same number of kWhs if you live in the area. But aside from cheaper electricity, the cost of living in the city is also lower. 

If you’re looking for a place with plenty of space and greenery, Lubbock city could fit your requirements. Check out more information about this great place to help you decide. 

Updated on 09-12-23