The Public Utility Commission (PUC) of Texas has approved Lubbock Power and Light’s entry in the ERCOT System.

The approval sets the path for Lubbock to be the first major Texas city to join ERCOT in nearly 25 years. LP&L submitted their application to integrate around 70 percent of its electrical system into ERCOT last September.

LP&L will have to pay the Southwest Power Pool $110 million dollars over the next 5 years to mitigate integrations costs. Also LP&L has to make a one-time payment of $24 million dollars to Xcel Energy. LP&L claims the expected savings that will be made by moving into ERCOT will outweigh these payments.

The portion of LP&L connecting to ERCOT will officially switch over on June 1, 2021. In the interim, the PUC will direct LP&L and other entities to construct transmission lines to connect LP&L to ERCOT.