Over the past 20 years, South Plains Electric has only raised rates three times. Can you think of anything else that has only had three price increases in 20 years?
Our last increase was in 2025 and was 8.93%. That was the first rate increase since 2016 when we raised rates 5.67%. In 2007, the increase was 2.28%. We’ve spent months looking at the Cooperative’s operating reports and reviewing expert analyses of the Cooperative’s rate structure and financial performance. As inflation and interest rates continue to climb, on February 20, 2026, the South Plains Electric Cooperative Board of Directors approved another necessary rate change to continue the financial viability of this growing Cooperative.
A 2.99% increase for our members will be effective May 1, 2026. This small adjustment, combined with the 8.93% increase in 2025, averages out to a 1.92%-per-year increase since the 2016 rate adjustment. The average U.S. inflation rate from 2016 through early 2026 has been roughly 3% to 3.5% annually. Your Cooperative is still providing safe, reliable electricity at the lowest possible cost.
Inflation and interest rate costs increased our expenses quickly, so much so that we could not pass all of the necessary increase along in 2025. We updated our rate study so we would have accurate figures for the 2026 increase and feel confident we are back to even.
Inflation drastically increased our material prices. Here are some examples of price increases for commonly used materials from January 2020 to May 2024:
• Crossarms: +103.37%
• Transformers: +98.5%
• Primary wire: +61.78%
• Insulators: +58.03%
Our interest rates have increased 185% since 2021, and we will continue to fund a fast-growing system while keeping rates affordable.
Even with the rate change, the rate for a residential member using 1,000 kilowatts per month will be 13.4¢ cents per kilowatt hour. Twelve-month rates from retail electric providers in the Lubbock area are ranging from 15¢ to 19¢ for a basic 12-month contract. In the Spur and Childress areas, the range is 14¢ to 19¢ for a basic 12-month contract.
The increase is a $7.50 per meter increase in the facilities charge and a $3.50 per meter increase to the minimum charge. Again, this is only the fourth rate increase our members have experienced since 2007. We are proud of the fact that we have been able to control costs while growing our Cooperative system.
The Cooperative invested nearly $283 million in growing the electric system since 2016.
Over the last three years alone, the Cooperative invested nearly $96 million into the electric system.
Between the years of 2014 and 2025, the City of Lubbock population increased 49%, with the majority of the people migrating to Southwest Lubbock.
As Lubbock grows, so must South Plains Electric Cooperative. In 2014, we had 51,879 residential, commercial, industrial and agricultural meters. At the end of 2025, we had 77,786 meters.
That’s a 50% increase in meters—nearly matching the City of Lubbock’s population growth. The Cooperative’s overall growth rate is 5% and ranks us amongst the highest 2% in the entire country.
Expanding communities must have reliable electricity. Without it, developers don’t invest, schools and homes aren’t built, companies don’t move in and jobs aren’t created.
Energy availability is vital for a thriving economy and healthy communities.
South Plains Electric may have been born a rural electric cooperative, but it has grown up to be a stable, reliable and affordable energy provider.
It’s difficult to drive down Farm Road 1585/Loop 88, 82nd Street, Milwaukee Avenue, or Woodrow Road and not see evidence of this expansion. It’s hard to believe that in 2005, Milwaukee Avenue was still a dirt road. We have considerable growth on the east side of Lubbock with Leprino and Plant AS. But Lubbock isn’t the only part of our service area expanding.
The Rolling Plains area is also growing. We serve an apartment complex, several hotels, Walmart, a new gas station, restaurants, a strip mall, a cryptocurrency center, a premier golf course, and other large loads are looking to move into our service area.
In the rural areas, oil and gas production is increasing, and the Cooperative is investing in the infrastructure to meet those needs.
In our 6,600 square miles of service area, criss-crossed by 10,342 miles of line, we still have rural areas that provide their own challenges.
For example, South Plains Electric serves an average of eight meters per mile of line; whereas, investor-owned utilities serve 35 meters and municipal utilities 47 meters per mile of line. The higher density of meters per mile of line means more people are paying the expenses.
Investor-owned utilities are owned by investors who may or may not be customers of the utility they own. Their stocks are traded on Wall Street, and those stakeholders demand a return on their investments.
Many municipal systems charge rates that generate revenue to help pay for other city services. A portion of the fee LP&L charges to deliver power is still being returned to the City of Lubbock.
South Plains Electric Cooperative is different because we operate on a not-for-profit basis and return any margins back to the members using the service.
South Plains Electric plans to continue keeping pace with the power demands of thousands of new and existing residential, commercial, industrial and agricultural members.
The Cooperative accomplishes this through expert planning, design and maintenance, and exceptional member service.
South Plains Electric has been completely locally owned and controlled since 1937 and is growing right along with our communities. The number of members grows, so does our commitment to serve the demand for electricity at the lowest possible cost.
No rate change is ever easy, but it is essential to keep your Cooperative financially viable. Your locally-elected board studied all alternatives and made necessary business decisions for the Cooperative’s best long-term interest—and for yours. Please plan to attend one of the member meetings in April to discuss your Cooperative’s finances with the board and staff.
Official Notice of Rate Change
Notice is hereby given that South Plains Electric Cooperative, Inc., Lubbock, Texas, intends to change rates for electric service pursuant to Texas Utilities Code Section 41,061. The Cooperative’s Board of Directors approved a rate change that will be reflected on the May 2026 billing.
The current rates of the Cooperative have been in effect since May 2025.
Based upon a test year ending December 31, 2023, it is anticipated that the proposed rate changes will increase the Cooperative’s annual revenues by 2.99% over adjusted test-year revenues. These changes will be reflected in a $7.50 increase to the facilities charge per month per meter and a $3.50 increase to the minimum charge per month per meter.
The rate changes will be applicable to all rate classes, and the percentage changes to each class will vary based on kWh usage and load factor. We will have meetings to discuss the proposed changes at the following locations and times:
Monday, April 20
6 p.m.
Lubbock Division—32nd Street Training Facility
7714 32nd St., Lubbock
Tuesday, April 21
6 p.m.
Rolling Plains Division—Spur Office
2741 FM 836, Spur
Wednesday, April 22
6 p.m.
Rolling Plains Division—Childress Office
1900 Ave. C NW, Childress
If you have any questions concerning these rate changes, please call Lubbock Division Manager Jon Henson at (806) 775-7742 or Rolling Plains Division Manager Ben Greene at (806) 775-7731.
