LP&L To Pay Franchise Fees To City

MyFox Lubbock:

Lubbock Power& Light will be paying franchise fees to the city for the first time in five years.

Mayor Tom Martin says during that grace period, the utility has built-up once seriously depleted reserves it has $40 million on hand.

Under a proposed formula based on a percentage of those reserves and gross electric sales LP&L will contribute $5 million to the city when the new fiscal year begins in October.

Mayor martin says this significant breakthrough is a result of months of discussions with the LP&L board and was consumated by agreeing to set April as the month for LP&L to report its annual earning expectations to the city.

“It’s very difficult to come back halfway through a budget year and try to, try to figure out where you are. But in the meantime a year ago when you were budgeting you had no idea what the number would be and that’s tough for LP&L and for the city. So the good news is, is this formula I think will work,” says Mayor Tom Martin.