Lubbock has the highest average electricity rates and bills in the state, just over a year after the city opened the market to companies, according to a recent study.
In January 2024, Lubbock officially made the switch from being a city-regulated market to a deregulated market. The move involved Lubbock joining the ERCOT grid and LP&L shifting focus to maintaining power infrastructure.
Now, a study by the Home Energy Club has determined that Lubbock has the highest electricity rate and average utility bill in the state. These factors earned it the title of the least affordable energy city.
Power to choose: Here’s what Lubbock consumers should know as electric providers enter open market
The top five least affordable energy cities were:
Lubbock with an average of 17.32 cents kilowatts per hour.
San Angelo and Abilene, tied with an average of 16.19.
Wichita Falls with an average of 15.85.
Lewisville with an average of 15.35.
Pearland, Galveston, Texas City and League City tied with an average of 15.08.
These rankings were determined through a survey of 1,600 customers across Texas and data from the Department of Energy, the Energy Information Administration and the American Council for Energy Efficiency. Data included electricity rates as a percentage of income and average rates, which were used to calculate average bills.
Nathan Schluter, content manager for Home Energy Club, explained the report’s findings and offered advice on how Lubbock residents could help themselves.
Why is Lubbock electricity so expensive?
Lubbock’s average, according to the report, is 17.32 cents per kilowatt hour, at least three cents higher than the state average. Average bills are $242.49, based on that rate.
That average includes LP&L’s power delivery charge. LP&L now handles only transmission and distribution, which includes having to purchase power from other places when needed.
“That’s part of why there’s a slightly higher cost in Lubbock,” Schluter said. “The transmission and distribution system out there is further from most generators, so there’s an increased cost for purchasing electricity from generators that are further away.”
Another reason for high bills is the weather. With the April 5 snowstorm, dust storms on March 14 and March 18, and Lubbock being dubbed the third windiest city in the state, the city’s weather has been intense in 2025 alone.
“The average usage level in Lubbock is fairly high, because not only do you have the excessive summer heat that Texas is famous for, and closer to the Panhandle, you also have colder winters, which typically leads to basically every part of the year, you have a reason to use more energy,” Schluter said.
This article continues after the gallery.
As for what goes into a rate, Schluter mentioned the cost of natural gas and other energy sources, such as solar and wind.
“If there’s a change in the gas market and then the cost per barrel of oil goes up, it can affect material electricity rates, because such a big chunk of your electricity comes from gas,” Schluter said. “(Solar and wind) can help defray some of the volatility of the natural gas market, but they come with their own volatility.”
Lubbock is also new to deregulation, so competition needs time to mature. As more electric providers join the area, it will bring prices down, according to Schluter.
“It may be a little challenging at first, but I’m optimistic that it’ll get better,” Schluter said. “I know right now it seems like it’s just more expensive and a headache on top of that, but I think it should get better as the market grows and gets used to deregulated energy.”
Your electric plan may be why it is so expensive. Here’s an explainer on the real cost of free nights, variable rates and other plans.
“If you’re looking at your rates and going ‘this is crazy expensive, why is it so high?'” Schluter said. “Review whatever your current contract is and make sure you’re enrolled in a good, straightforward fixed-rate plan.”
Schluter encouraged people to avoid variable-rate energy plans, as the rates can jump drastically.
“They expose you to the market in a very bad way,” Schluter said. “The cost could dip and variable rates can look really good for that week, but then the next week, when suddenly it’s 105 and the humidity is a million percent, that variable rate can go right back up.”
Time-of-use plans, designed to reduce strain on the power grid, can also be tricky. These plans can include discounted or free nights and weekends, but the rates are higher the rest of the time.
Those rates could go as low as five cents or free, but during high-use hours, it could cost 24-25 cents per kilowatt hour, not including utility fees. In order to make the most of this type of plan, consumers have to shift their usage times to those low periods.
“The idea of the time-of-use plan is to say ‘we’re going to charge you a lot for electricity, like a very high rate during that period’, but if you wait until 9 p.m. to 5 a.m., they’ll offer a discounted rate,” Schluter said. “It’s a bit of a devil’s bargain.”
Another plan is bill credits, which offer a credit to customers who reach a certain amount of kilowatt hours. If that number, usually 1,000 or 2,000, is not reached, customers don’t get the credit and are hit with a high rate only shown in the energy fact label.
Schluter recommended that everyone look at the electricity facts label on their plans. These labels break down charges and discounts, and how the company calculated the advertised rate.
“Honestly, just doing your research, looking at past power bills and then reading the electricity facts label – those are the key ingredients to getting the most out of your deregulated experience,” Schluter said.
People can compare plans through powertochoose.org. Customers should look at their total energy usage for the year, as the month-by-month usage will differ, and you can find patterns in how seasons affect bills.
“I always want to quote Spider-Man, ‘with great power comes great responsibility’,” Schluter said. “It’s so true. You have to take the time, because no one else is going to do the research for you.”
Here’s how you can reduce your electric bill
Some tips on lowering usage include:
Change the thermostat by seven degrees.
Turn off lights when you leave the room.
Wash laundry with cold water.
Upgrade appliances to Energy Star-certified options. These can be expensive, but use less energy.
Use smart power strips that can detect when items are not in use and turn off.
“Another good idea is looking for, we call it phantom power, or vampire energy,” Schluter said. “These are devices that are using electricity even when they’re not in use.”
These can include gaming systems, Wi-Fi routers and coffee machines.
“It seems small, but if you’re doing it for all of these devices over several hours, it can add up and help save on your energy costs pretty significantly,” Schluter said.
Alana Edgin writes about business for the Lubbock Avalanche-Journal. Got a news tip? Contact her via email at aedgin@lubbockonline.com.
This article originally appeared on Lubbock Avalanche-Journal: Lubbock has most expensive electric rates, bills, study finds