HomeMy WebLinkAboutResolution - 2022-R0408 - Procedures and Criteria for Retail Competition - LP&LResolution No. 2022-R0408
Item No. 5.17
September 27, 2022
WHEREAS, Lubbock Power & Light is the municipally owned electric utility
of the City of Lubbock ("LP&L");
WHEREAS, pursuant to Texas Utilities Code Chapter 40, the Electric Utility
Board of the City of Lubbock, on or about February 15, 2022, by Resolution No.
EUB2022-RO10, adopted an irrevocable resolution for LP&L to participate in
customer choice, upon the occurrence of specified conditions outlined therein;
WHEREAS, pursuant to Texas Utilities Code Chapter 40, the City Council
of the City of Lubbock, on or about February 22, 2022, by Resolution No.
EUB2022-R0108, adopted an irrevocable resolution for LP&L to participate in
customer choice, upon the occurrence of specified conditions outlined therein;
WHEREAS, pursuant to the resolutions described above, one of the specified
conditions required that the "Electric Utility Board and the City Council of the City
of Lubbock have established the procedures and criteria, if desired, for selecting
the Provider of Last Resort ("POLR") for customers within LP&L's certificated
service area as of the date of the initiation of customer choice, and have ultimately
designated another entity that will serve as the POLR pursuant to Texas Utilities
Code § 40.053";
WHEREAS, under Texas Utilities Code Chapter 40, "the governing body of
a municipally owned utility may establish the procedures and criteria for
designating the provider of last resort";
WHEREAS, in the competitive retail market, there are Voluntary Retail
Electric Providers, which provide a safety net for customers whose chosen Retail
Electric Provider (REP) is unable to continue service, in addition to the Provider of Last
Resort;
WHEREAS, the City Council of the City of Lubbock desires to establish
Default REPs, who will serve customers who have not selected a REP by the date
of the initiation of customer choice in LP&L's certificated area;
WHEREAS, pursuant to the resolutions described above and applicable law,
the City Council of the City of Lubbock hereby desires to establish the procedures
and criteria for designating the Provider of Last Resort for purposes of opting into
retail competition, and further desires to establish the procedures and criteria for
designating Voluntary REPs and Default REPS; NOW, THEREFORE:
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the City Council of the City of Lubbock hereby approves the procedures and
criteria attached to this resolution as the procedures and criteria for designating the
Provider of Last Resort, Voluntary Retail Electric Providers, and Default REPs.
BE IT FURTHER RESOLVED BY THE CITY COUNCIL OF THE CITY OF
LUBBOCK:
THAT the City Council of the City of Lubbock hereby authorizes, directs, and
instructs the Purchasing Manager, or his designee, to initiate the process authorized
herein for the designation of the Provider of Last Resort, Voluntary REPS, and
Default REPS.
Passed by the City Council of the City of Lubbock t ' th J y of September 2022.
Tray ayne, y r
ATTEST:
,1 /1.0.* , - K�
Be y Garza, City S ret y
APPROVED AS TO CONTENT:
, Director of Eleq is Utilities
APPROVED AS TO
3 Sm th, P&L General Counsel
Resolution No. 2022-RO408
Lubbock Power & Light's Criteria for Selecting POLR, VREP, and Default REP
Definitions and Intended Use
LP&L intends to generally follow PUC guidelines for the designation of Provider of Last Resort (POLR)
and for designating Voluntary (VREP) POLR, to the extent they are instructive for LP&L's process.' Under
the PUC's criteria, the POLRs and VREPs provide a safety net for customers whose chosen Retail Electric
Provider (REP) is unable to continue service or when a customer requests POLR service. These
designations are for customers in the LP&L MOU service area and under the regulatory jurisdiction of
the Lubbock City Council and Electric Utility Board, or as may be delegated in the future to the extent
allowed by applicable law. LP&L will utilize the stated criteria contained herein to select POLR/VREPs for
the service area of LP&L. A customer assigned to a VREP will be provided a market based, month -to -
month product and will be able to select a REP and switch away from the VREP without penalty.
Due to the transition of LP&L from a vertically integrated non -opt in MOU to an MOU operating as a
transmission service provider and distribution service provider only in the retail market, LP&L will not be
capable of providing POLR/VREP or Retail Electric Provider (REP) services. Consequently, a failure of
LP&L to procure POLR/VREP service may deter or delay LP&Us ability to enter the retail market in
accordance with Texas Utilities Code § 40.053.
LP&L is further defining a Default REP (DREP) as a Large Service Provider who is capable of accepting a
large number of customer accounts due to a non-POLR event. A potential non-POLR event transition of
customer accounts will only apply to those accounts without a designated, or chosen REP, by the time
the transition to the retail market is complete. LP&L will utilize the stated criteria contained herein to
select DREPs for the service area of LP&L. A DREP may also serve as POLR/VREP as the distinction of
DREP is to be used only for the initial move to market and for no other continued purpose. A customer
assigned to a Default REP will be provided a market based, month -to -month product and will be able to
select a REP and switch away from the Default REP without penalty
All qualified REPS, regardless of POLR/VREP/DREP status shall have equal opportunity to compete for
customers in the LP&L service area. An open customer sign-up period is anticipated to begin in the
summer of 2023, prior to the initial move to market.
1 As a municipally owned utility, the POLR provisions in the PUC rules are not applicable to LP&L
and its certificated area. 16 Tex. Admin. Code § 25.43(b)("The provisions of this section relating to the selection of
REPS providing POLR service apply to all REPS that are serving retail customers in transmission and distribution
utility (TDU) service areas. This section does not apply when an electric cooperative or a municipally owned utility
(MOU) designates a POLR provider for its certificated service area.").
Evaluation Criteria
POLR Criteria
Responses on the questionnaire
Ranking of market share in ERCOT on a list provided to LP&L by ERCOT
from 366 days ago
Product offerings specifically designed for low income customers
Community involvement in cities you currently serve
VREP Criteria
Responses on the questionnaire
Ranking of market share in ERCOT on a list provided to LP&L by ERCOT
from 366 days ago
Product offerings specifically designed for low income customers
Community involvement in cities you currently serve
DREP Criteria
Responses on the questionnaire
Ranking of market share in ERCOT on a list provided to LP&L by ERCOT
from 366 days ago
Product offerings specifically designed for low income customers
Community involvement in cities you currently serve
Willingness to serve as POLR/VREP
Questionnaire
1. REP is Certificated by the Public Utility Commission of Texas ("PUC") under PUC Rule 25.107
2. There is no proceeding to revoke or suspend the REP's certificate pursuant to Rule 25.107, and
the REP's certificate has not otherwise been suspended or revoked
3. REP has served customers in Texas for at least 18 months
4. REP serves the applicable customer class
S. REP agrees to execute Appendix A to LP&L's Competitive Access Tariff under PUC Rule 25.215,
and Appendix V to the Substantive Rules
6. REP meets the minimum financial, technical, and managerial qualifications established by the
PUC under Rule 25.107
7. REP satisfies POLR requirements established during the term proposed in the RFP
8. REP has been designated as a POLR by the PUC in the last five years (and number of times so
designated)
9. REP has been designated as an LSP (Large Service Provider) by the PUC in the last five years (and
the number of times so designated)
10. Number of ESI IDs REP may accept from LP&L's service territory per customer class in addition to
current customers served
11. A summary of any additional benefits that may be available to LP&L's ratepayers, the City of
Lubbock, and its citizens in connection with selecting the REP to provide POLR services
12. A summary of the REP's current and historic provision of POLR services and other retail services
in other areas of Texas, including the REP's approximate number of current retail customers and
historic rates for each class of service
13. Summary of how the REP works with low-income customers and products specifically intended
for that group of citizens
14. Proposed POLR rate or rate formula for the Lubbock service territory
Additional questions for VREP
1. Customer classes the REP is willing to serve in LP&L's certificated area
2. Number of ESI IDs the REP is willing to serve by customer class in LP&Vs certificated area in a
transition event
3. Number of times REP has reduced its number of ESI IDs willing to be served by the REP in the
last five years with explanation regarding same
Additional questions for Default REP
1. Customer classes the REP is willing to serve in LP&L's certificated area
2. Number of ESI IDs the REP is willing to serve by customer class in LP&Us certificated area during
the initial transition event
3. Number of times REP has reduced its number of ESI IDs willing to be served by the REP in the
last five years with explanation regarding same
Process
LP&L Staff will present criteria and process for selection of Provider of Last Resort to the Lubbock
Electric Utility Board (EUB) and Lubbock City Council during their respective meetings in September of
2022.
On or about October 1, 2022 - LP&L will send out a Request for Proposal (RFP) to solicit Retail Electric
Providers willing to serve as Provider of Last Resort (POLR), Volunteer Retail Electric Provider (VREP),
and Default Retail Electric Provider (DREP) for LP&L's certificated service territory. The RFP will be sent
out to the public for 45 days.
The RFP will be distributed to the market by several means, including but not limited to the following:
• ERCOT RMS Members
• REP Contact List from ERCOT and/or PUCT located here:
htts: www. uc.texas. ov indust electric directories re al ha re .as x
• Lubbock Power & Light website
Once the submissions are received, LP&L expects to take approximately 30 days (up to 60 days) for
evaluation and negotiation. Submissions will be evaluated by two LP&L staff representatives, one City of
Lubbock (non-LPL&L) staff representative, and one third party representative.
The selection committee will select 1 POLR and up to 14 additional VREPs to serve Lubbock customers
for a two-year period. The number of DREPs will be decided by the selection committee based on the
scoring criteria, including the responses to the questionnaire.
LP&L expects to make recommendations to the Electric Utility Board (EUB) and expects designation by
Lubbock City Council Q1 of 2023.
WHEREAS, Lubbock Power & Light is the municipally owned electric utility
of the City of Lubbock ("LP&L");
WHEREAS, pursuant to Texas Utilities Code Chapter 40, the Electric Utility
Board of the City of Lubbock, on or about February 15, 2022, by Resolution No.
EUB2022-RO10, adopted an irrevocable resolution for LP&L to participate in
customer choice, upon the occurrence of specified conditions outlined therein;
WHEREAS, pursuant to Texas Utilities Code Chapter 40, the City Council
of the City of Lubbock, on or about February 22, 2022, by Resolution No.
EUB2022-R0108, adopted an irrevocable resolution for LP&L to participate in
customer choice, upon the occurrence of specified conditions outlined therein;
WHEREAS, pursuant to the resolutions described above, one of the specified
conditions required that the "Electric Utility Board and the City Council of the City
of Lubbock have established the procedures and criteria, if desired, for selecting
the Provider of Last Resort ("POLR") for customers within LP&L's certificated
service area as of the date of the initiation of customer choice, and have ultimately
designated another entity that will serve as the POLR pursuant to Texas Utilities
Code § 40.053";
WHEREAS, under Texas Utilities Code Chapter 40, "the governing body of
a municipally owned utility may establish the procedures and criteria for
designating the provider of last resort";
WHEREAS, in the competitive retail market, there are Voluntary Retail
Electric Providers, which provide a safety net for customers whose chosen Retail
Electric Provider (REP) is unable to continue service, in addition to the Provider of Last
Resort;
WHEREAS, the Electric Utility Board desires to establish Default REPs, who
will serve customers who have not selected a REP by the date of the initiation of
customer choice in LP&L's certificated area;
WHEREAS, pursuant to the resolutions described above and applicable law,
the Electric Utility Board of the City of Lubbock hereby desires to establish the
procedures and criteria for designating the Provider of Last Resort for purposes of
opting into retail competition, and further desires to establish the procedures and
criteria for designating Voluntary REPS and Default REPs; NOW, THEREFORE:
BE IT RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE CITY OF
LUBBOCK:
THAT the Electric Utility Board hereby approves the procedures and criteria
attached to this resolution as the procedures and criteria for designating the Provider
of Last Resort, Voluntary Retail Electric Providers, and Default REPS.
BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE
CITY OF LUBBOCK:
THAT the Electric Utility Board hereby authorizes, directs, and instructs the
Purchasing Manager, or his designee, to initiate the process authorized herein for
the designation of the Provider of Last Resort, Voluntary REPS, and Default REPS.
BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE
CITY OF LUBBOCK:
THAT the Electric Utility Board hereby recommends that the City Council of the City
of Lubbock approve the attached procedures and criteria for designating the Provider of
Last Resort, Voluntary REPS, and Default REPS.
BE IT FURTHER RESOLVED BY THE ELECTRIC UTILITY BOARD OF THE
CITY OF LUBBOCK:
THAT this resolution shall be null and void if the City Council of the City of Lubbock
does not approve a resolution approving the attached procedures and criteria for
designating the Provider of Last Resort, Voluntary REPs, and Default REPs within
thirty (30) days of this resolution.
Passed by the Electric Utility Board this 20th day of September, 2022.
ATTEST:
G#n Stafford, Board etary
APPR VED AS T NTENT:
7
Jo , irector of Electric Utilities
FiiL�1lf1
i Odom,
APPROVED AS TO FORM:
Jirt S , LPM, General Counsel