[{"_1":2,"_86":-5,"_87":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,75],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},"mediaId",6506781,"mediaKeyId","5551524-b54284e7bc5ced4c3fd1ef600c857159","parentId",5551524,"title","Lubbock Power & Light presents budget; ERCOT TCOS revenue and 'hold harmless' credit shape reserves","audioSeconds",747,"startMs",1442000,"endMs",2189000,"viewUrl","/Search/View?dp=1&key=5551524-b54284e7bc5ced4c3fd1ef600c857159&start=1442&end=2189","thumbnailUrl","https://assets.pipeline.soar.com/5551524-b54284e7bc5ced4c3fd1ef600c857159/thumbnail_1442000.jpg","articleUrl","/articles/6506781/Lubbock/Lubbock-County/Texas/Lubbock-Power-Light-presents-budget-ERCOT-TCOS-revenue-and-hold-harmless-credit-shape-reserves","mediaUrl","https://secure.pipeline.soar.com/6506781-8a17291a6a428e51779033114da17b15/orig.mp4?Expires=1770936309&Signature=oqKTFZgP6vRVmUlVnQgOYVDCm809RREZOVKzKXtFkRPmVIsJXCBfkHBMLvk3D6eVuEu6SWytaKiUAxMSy9eiRLkhKhM08bUTn1nkN9r1jlboN6Na7aRMDa5pfFjDGMeuLKgjiM40epO2Q1M5DPs0A5zdo~Qdl3c3Jtlt5yTxkvpwXSJ4gRc2HYu9sIjaM1utTzPf34LUE6tIOMQ7dEi4A7ol5ewVhPK2bwBfqQUhCk~KA-CJhfl40wgy0cQ1th5F6JrRAlU75aSHIWtTTp0TUfKn7Z5rN7nM6M4ovq9~FT7EPUM9EwyYsLMYhlmtRr9YFBfOwYmQfa~DNvF~EvqUHQ__&Key-Pair-Id=KUT5TJCACFTXG","author","Lubbock","date","2025-08-07T06:16:38.693Z","article","Harvey Hall, chief financial officer for Lubbock Power & Light, gave the utility's budget presentation, focusing on revenues, reserves and capital priorities. Hall said LP&L expects total expenses to fall modestly from about $185 million in the prior year to roughly $179 million in the proposed budget.

The nut graf: LP&L’s revenue and reserve picture is heavily affected by transmission-related fees and a multi-year ERCOT-related ‘‘hold harmless’’ arrangement; a favorable Public Utility Commission decision increased the utility’s allowed TCOS revenue and the scheduled end of the hold-harmless credit in February 2027 will free about $22 million per year for local ratepayer benefit.

Hall told council a key one-time driver in the prior year was cost recovery for crews sent to Florida after Hurricane Milton; that work and FEMA reimbursements reduced this year’s nonrecurring revenue. On distribution revenue, staff is modeling a small rate decrease (about one to one-and-a-half percent) in the distribution charge, subject to final filings and Council action.

A large and recurring revenue line is TCOS — the transmission cost of service the utility charges for transmission assets outside city limits. Hall said the utility budgeted TCOS revenue at about $44.4 million for the coming year after a favorable ruling by the Public Utility Commission that awarded LP&L the increase it sought. Hall said this TCOS structure means costs for transmission assets outside the city are borne by customers using the transmission rather than by Lubbock property taxpayers.

Hall described reserves and borrowing: LP&L used about $19.1 million of reserves in the current year for projects and expects to use roughly $6.4 million next year; the scheduled end of the ERCOT hold-harmless credit in February 2027 will allow about $22 million annually to be retained for ratepayer benefit thereafter. He also said the utility paid down a 2015 revenue bond early, reducing debt service and improving credit metrics; the utility recently received rating upgrades from Fitch, S&P and Moody’s to the 'AA' category.

On capital, Hall noted a pending proposal to participate in a West-side transmission loop in partnership with another utility. That borrowing (estimated in staff remarks at about $120 million) would be financed through TCOS and would not be included in retail distribution rates. Hall emphasized operational items including vegetation management and required NERC/FERC testing and described planned capital funds for equipment replacement and a continued emphasis on cash funding projects when possible.

Council members asked about tree-trimming responsibilities, the timing of TCOS filings and the impact of the hold-harmless credit expiration; Hall and staff answered that the vegetation work is targeted to power infrastructure and that the transmission borrowing, if pursued, would be presented with full PUC filings and cost-recovery plans.","mediaType","Video","parentTitle","Special City Council Budget Meeting - August 5, 2025","oneSentenceSummary","Harvey Hall, chief financial officer for Lubbock Power & Light, gave the utility's budget presentation, focusing on revenues, reserves and capital priorities.","taxTitle","Lubbock, Lubbock County, Texas","taxId",2806,"location","headline","","shortSummary",{"_33":76,"_35":36,"_37":38,"_39":77,"_41":78,"_43":79,"_45":79,"_47":80,"_49":81,"_51":82,"_53":83,"_55":56,"_57":58,"_59":84,"_61":62,"_63":64,"_65":85,"_67":68,"_69":70,"_71":68,"_72":73,"_74":73},6506786,"City manager outlines water and wastewater budget; West Lubbock expansion will use revenue bonds",0,5464000,"/Search/View?dp=1&key=5551524-b54284e7bc5ced4c3fd1ef600c857159&start=5464&end=5464","https://assets.pipeline.soar.com/5551524-b54284e7bc5ced4c3fd1ef600c857159/thumbnail_5464000.jpg","/articles/6506786/Lubbock/Lubbock-County/Texas/City-manager-outlines-water-and-wastewater-budget-West-Lubbock-expansion-will-use-revenue-bonds","https://secure.pipeline.soar.com/6506786-1dc883ba4c72cdd7dcacf945c15ad7a9/orig.mp4?Expires=1770936309&Signature=IKA6G204hEuwzGtUR7avBZLS9DreMdqVSlLdcvZB9pXQBzz7oIaKUQ1CkHt1hn7ZRXd7qXGC8NqdfigLdiTXJoufkpSTdXs8C7~Tf-g9bHqeLDzOlqfDlWDkyn3-5bD4gfczJto1BkluE~LSAISCat8u8kMeBxn-rfuU-afNtHbLBKOBgoTSnHiFaxRSl2ZrvQfrHLUq3eQVvzBOgsVR92NOFckjPO4-Szx~Sr1AfK71h0x-HeZ7NU5OBfvdRvWZ2EdkqHWntBvboQdpqRk4MGLjQMrgabr7MiX2fCpZhkKnb-nsywhlvTrgm59dG3sdU~HpKa2P9YN4P4QM2LOlFw__&Key-Pair-Id=KUT5TJCACFTXG","City Manager Jared opened the enterprise portion of the budget work session with a review of water and wastewater finances, saying the city expects slightly higher water revenue next year and does not plan to dip into combined water/wastewater reserves for the coming year. \"We do think that will hold,\" Jared said of higher consumption following a wet year.

The budget model combines revenues, operations, debt and capital. The nut graf: the utility fund projects to finish the current fiscal year with modest positive results and plans significant cash capital spending next year while financing the remaining portion of the West Lubbock water expansion with revenue bonds rather than property tax-backed debt.

Most of the fund-level details presented were technical but consequential: projected combined water/wastewater revenue was shown at roughly $168.6 million for the current fiscal year, rising to about $171.1 million in the proposed year. The manager noted operations-and-maintenance and transfer allocations (including a transfer to Lubbock Power & Light for billing costs) are a sizeable share of the fund. Debt service increases are tied principally to the first and upcoming second portions of the West Lubbock expansion; Jared said the second half appears later in the capital plan.

Key financial metrics: the city presented a projected debt-service coverage ratio of 1.83x for the new budget year, above the internal target of 1.75x the council uses to preserve bond ratings. The city’s reserve policy for these utilities was reiterated at 25% of revenue; the combined fund is modeled to end the current year with a reserve level below that policy but to recover over future years.

On rates, Jared said the model shows base rates covering about 56% of debt-service obligations at present (down from 96% last year because of revenue and structure changes), and the staff is not proposing fee increases for water or wastewater in this cycle. He explained the difference between base (fixed) and volume (consumption) charges, noting the base rate includes the first 1,000 gallons and the example three-quarter-inch meter base remains $18.75 under the proposed budget.

Capital priorities highlighted on the water side include valve locating/repair, large valve replacements, new meter sets, terminal storage reservoir improvements near the airport and pumping system improvements. Jared said all listed water projects will be paid in cash except the West Lubbock expansion (about $36.4 million of the total roughly $48.9 million water and wastewater capital package is revenue-bond financed). On wastewater, projects include plant improvements, lift station rehabilitation, sanitary sewer expansion and SCADA cybersecurity and modernization work.

Councilmembers asked clarifying questions about debt-service timing and how projects are funded; staff responded that the West Lubbock project has phases with preliminary engineering funded earlier and principal construction funding staged across fiscal years.

Looking ahead, staff said they will monitor consumption, interest earnings and the sewer lateral assistance program results and will update the model before final budget adoption.","City Manager Jared presented the water and wastewater enterprise budget, projecting slightly higher water revenue, no reserve drawdown this year, and major capital spending including the second half of the West Lubbock water expansion funded with revenue bonds.","actionData","errors"]

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Lubbock Power & Light presents budget; ERCOT TCOS revenue and 'hold harmless' credit shape reserves

City manager outlines water and wastewater budget; West Lubbock expansion will use revenue bonds