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Texas PUC Staff Recommend Approving LP&L Integration Into ERCOT With Conditions

December 13,2017

In testimony, Staff of the Texas PUC recommended that the Commission approve Lubbock Power and Light's (LP&L) proposal to integrate into ERCOT with the following conditions: (1) ERCOT and SPP customers are held harmless, and (2) LP&L should be required to come before the Commission for a public interest determination before being permitted to exit ERCOT, and should be required to pay for any stranded costs.

Staff did not address in its testimony two issues raised by retail providers: whether LP&L should join ERCOT as a new NOIE load zone or as part of the West zone, and whether LP&L should be required to study retail electric choice

Staff's testimony noted that, based on an analysis of LP&L integration, "ERCOT retail customers would pay slightly higher prices as indicated by ERCOT's LMP calculations. ERCOT calculates the estimated increase to LMPs on average to be 0.085% in 2020 and 0.112% in 2025. This would result in a small negative impact to ERCOT retail customers."

ERCOT   Texas   LP&L  

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