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.
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SOURCE Oracle