LP&L To Purchase Xcel Energy's Electricity Distribution System

Published: 04-Nov-2009

Lubbock Power & Light (LP&L) and Xcel Energy have reached a mutually beneficial agreement that will allow LP&L to purchase Xcel Energy's electricity distribution system within the City of Lubbock, Texas, and to serve all of Xcel Energy's Lubbock retail electric customers.

Since 1942, Lubbock has been served by both companies, resulting in duplication of electric power services, lines, poles and substations.

David Eves, president and CEO of Southwestern Public Service, an Xcel Energy company, said: "The duplication of retail electric service in Lubbock has not been efficient, and we believe we can best serve Lubbock and our other Texas retail customers by only providing the low-cost wholesale electricity to LP&L. Xcel Energy customers in Lubbock will be served by LP&L, but Xcel Energy will continue to supply the wholesale power and transmission services."

Xcel Energy has received approval from the Xcel Energy Board of Directors to proceed with the sale of these assets, and the company is expected to gain regulatory approvals within the next nine months. LP&L will be seeking approval from the LP&L Electric Utility Board and the Lubbock City Council.

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