Lubbock Power & Light Fuels New Customer Options with Oracle

Rhea-AI Summary

Lubbock Power & Light (LP&L) has transformed its business model by becoming the first Texas municipal utility to voluntarily opt into retail electric competition, supported by Oracle's technology. The utility implemented Oracle Utilities Customer Cloud Service and Oracle Utilities Advanced Meter Solution in 2021, followed by Oracle Utilities Market Transaction Management to enable competitive retail operations.

Since January 5, 2024, customers can choose from multiple retail electric providers, with LP&L focusing on maintaining electrical infrastructure. This transition to the Electric Reliability Council of Texas (ERCOT) system eliminates expensive fixed capacity charges and saves $350-$700 million by avoiding the construction of a new power plant.

Positive

• Elimination of expensive fixed capacity charges for customers
• $350-$700M cost savings from avoiding new power plant construction
• Implementation of advanced metering infrastructure (AMI) technology
• Successful transition to competitive retail market

Negative

• Discontinuation of direct electricity service provision

Insights

Financial Technology Analyst

Oracle's partnership with Lubbock Power & Light (LP&L) highlights the company's strategic positioning in the utility sector's digital transformation journey. This implementation represents more than just a technology deployment—it's enabling a fundamental business model transformation for LP&L, making it the first Texas municipal utility to voluntarily deregulate in 25 years.

What's particularly notable is the significant cost avoidance for LP&L—between $350-$700 million by eliminating the need for a new power plant. Oracle's cloud-based utilities solutions are providing the technical foundation for this complex transition from traditional electric provider to infrastructure manager within a competitive retail market.

From a revenue perspective, this deployment of Oracle Utilities Customer Cloud Service and Advanced Meter Solution represents the kind of sticky, long-term cloud subscription business that Oracle has been strategically pursuing. The ongoing nature of ERCOT regulatory requirements ensures continued reliance on Oracle's solutions, creating a dependable revenue stream.

While a single implementation won't materially impact Oracle's $460B market cap, the company's ability to deliver both technology and industry expertise through its Customer Solutions for Industries team demonstrates its competitive advantage in complex, regulated sectors. Such successful reference cases strengthen Oracle's position to capture similar utility transformation projects as more regions consider retail electric competition.

Utility relies on Oracle technology to become first Texas municipal utility to opt in to retail electric competition

NASHVILLE, Tenn., March 3, 2025 /PRNewswire/ -- Oracle Customer Edge Summit -- With support from Oracle, Lubbock Power & Light (LP&L) is transforming the way it offers electricity services to its customers. After more than 108 years as the municipal electric provider for the City of Lubbock, the utility has transitioned its business model to retail electric competition backed by Oracle's utility customer and Advanced Meter Infrastructure (AMI) technologies. LP&L is now focused exclusively on maintaining the electrical infrastructure throughout Lubbock to provide residents with flexible power options for affordable, reliable electricity. Oracle's Customer Solutions for Industries, the organization within Oracle that delivers implementation, adoption, and transformation services, provided industry expertise for the project.

By joining the Electric Reliability Council of Texas (ERCOT) system and integrating with retailers, LP&L customers can expect to save significant money with the removal of expensive fixed capacity charges. The utility also has eliminated the need to build a new power plant at an estimated cost range of $350-$700 million.

"Joining the ERCOT system accomplishes the long-term customer goals LP&L set forth when we began this process many years ago. We are proud to be the first municipally owned utility in Texas to voluntarily deregulate in the 25 years since legislation made this possible," said Clint Gardner, Chief Customer Officer for LP&L. "Oracle's solutions and guidance have been pivotal components of this journey for the past five years, and their experience with deregulated markets was especially helpful in keeping us on track to complete our business model transition."

From electric provider to retailer
In 2021, the City of Lubbock Utilities, went live with Oracle Utilities Customer Cloud Service and Oracle Utilities Advanced Meter Solution across its customer base of electricity and water customers. This move provided the utility with the modern, sophisticated meter data management and billing platform needed to support its AMI initiative. Following a year of system operation, LP&L collaborated with Oracle's Customer Solutions for Industries to implement additional components in Oracle Utilities Customer Cloud Service to shift to a competitive electric retail model. This included the implementation of Oracle Utilities Market Transaction Management for U.S. distribution and turning off impacted electricity service-related functions such as billing and customer service, while leaving water service-related functions intact.

Since January 5, 2024, customers have been able shop from multiple retail electric providers, each offering their own plans, pricing, and contract terms. The retail providers are responsible for buying and selling power, while LP&L will continue to own and maintain all transmission and distribution infrastructure, such as poles and lines. With the Oracle solutions, LP&L is able to meet the needs of its customers today, while having the flexibility to manage the ERCOT-mandated changes to the Texas Standard Electronic Transaction (Texas SET) used by the competitive retail electric market. These changes took effect in late 2024.

"LP&L's successful completion of its retail electric competition initiatives with ERCOT is a huge accomplishment, and we are extremely proud to have supported the delivery of new power choices to its customers," said Dave De Maio, senior vice president and general manager, Oracle Customer Solutions for Industries. "This project clearly demonstrates Oracle's ability to assist in the most complex utility business transformations. Our reliable solutions and managed services will continue to help deliver value across LP&L's business as additional ERCOT mandates take effect and the utility reallocates resources to priority infrastructure and field service efforts."

Oracle's Customer Solutions for Industries team delivers world-class solutions to drive lasting business outcomes for Oracle customers. Learn more about these services and Oracle Energy and Water here, join the discussion on LinkedIn, and visit us at Oracle Customer Edge Summit.

About Oracle
Oracle offers integrated suites of applications plus secure, autonomous infrastructure in the Oracle Cloud. For more information about Oracle (NYSE: ORCL), please visit us at oracle.com.

Trademarks
Oracle, Java, MySQL and NetSuite are registered trademarks of Oracle Corporation. NetSuite was the first cloud company—ushering in the new era of cloud computing.

View original content to download multimedia:https://www.prnewswire.com/news-releases/lubbock-power--light-fuels-new-customer-options-with-oracle-302389527.html

SOURCE Oracle

FAQ

How much money will LP&L save by joining ERCOT and avoiding new power plant construction?

LP&L will save between $350-$700 million by eliminating the need to build a new power plant through joining the ERCOT system.

When did LP&L implement Oracle's utility customer and AMI technologies?

LP&L implemented Oracle Utilities Customer Cloud Service and Advanced Meter Infrastructure (AMI) solutions in 2021.

What is LP&L's new role after transitioning to retail electric competition?

LP&L now focuses exclusively on maintaining electrical infrastructure (poles and lines) while retail providers handle power buying and selling.

When did LP&L customers gain access to retail electric provider choices?

Customers have been able to shop from multiple retail electric providers since January 5, 2024.