Lubbock approves notice of intent for up to $200 million in transmission bonds to address ERCOT congestion

Lubbock City Council on March 24 authorized staff to publish a notice of intent to issue up to $200 million in electric light and power system revenue bonds to fund a west‑side transmission loop aimed at easing power congestion identified by ERCOT.

Harvey, the utility’s chief financial officer, told the council regional planners and ERCOT have determined a west‑side loop is needed to maintain operational compliance and system reliability. He said the project includes substations and transformers with lead times of two to three years and that staff is negotiating cost‑sharing with a neighboring utility. “We would be, for up to $200,000,000,” Harvey said, adding the bonds would likely be sold later this year and that ordering materials now reduces exposure to rising costs.

Councilmembers pressed for details about timing, whether the full amount would be sold at once and the likely rate impact. Harvey said the bond would probably be issued in 2026 and that, for efficiency and to secure long lead‑time equipment, the utility typically issues the full authorized amount rather than multiple separate issuances. He also said transmission costs are recovered through transmission rates before the Public Utility Commission, meaning much of the charge will be borne by system users outside the city rather than by taxpayers: “Those rates are not paid by Lubbock citizens. They’re not paid by taxes,” he said.

Council members asked about public communication; Harvey and staff said outreach will explain the project’s urgency, cost‑sharing and how rate recovery works. The council voted unanimously to approve the resolution to begin the bond notice process.

Next steps: staff will finalize engineering specifications with the regional planning group, conclude cost‑sharing arrangements and return with ordinance readings and financing documents as required.