Wiktor Wise
South Plains Electric Cooperative (SPEC) is an electric cooperative that serves customers in two separate electric grids in Texas: the Southwest Power Pool (SPP) and the Electric Reliability Council of Texas (ERCOT). SPEC's wholesale power comes from two generation and transmission cooperatives: Golden Spread Electric Cooperative and Brazos Electric Power Cooperative. The cooperative is committed to efficiency, with controllable expenses accounting for only 15% of its total expenses, and it has experienced significant growth, ranking in the top 9% in the US for total utility plant investment.
| Characteristics | Values |
|---|---|
| Name | South Plains Electric Cooperative (SPEC) |
| Grid Connections | Southwest Power Pool (SPP) and ERCOT |
| Wholesale Power Suppliers | Golden Spread Electric Cooperative, Brazos Electric Power Cooperative |
| Efficiency | Controllable expenses make up 15% of total expenses |
| Ranking | 9% of cooperatives in the U.S. in terms of total utility plant investment |
| Growth | 5.13% in 2021, making them the 22nd fastest-growing cooperative in the U.S. |
| Distribution Grid Size | Over 10,000 miles of line |
| Principles | Voluntary and Open Membership, Democratic Member Control, Members' Economic Participation, Autonomy and Independence, Education, Training and Information, Cooperation among Cooperatives, Concern for Community |
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What You'll Learn
South Plains Electric Cooperative serves two grids
South Plains Electric Cooperative, also known as South Plains Electric Co-op (SPEC), serves two electric grids: the Southwest Power Pool (SPP) and the Electric Reliability Council of Texas (ERCOT). SPEC's wholesale power comes from two generation and transmission cooperatives: Golden Spread Electric Cooperative (headquartered in Amarillo) and Brazos Electric Power Cooperative (headquartered in Waco).
SPEC's customers are spread across two separate electric grids. In February 2021, SPEC customers in the ERCOT portion of the grid experienced rolling blackouts, in addition to seven consecutive days of below-freezing temperatures. The South Plains Electric Cooperative is based in Lubbock, Texas, and serves the tremendous residential growth around the city with extremely competitive residential rates.
The cooperative is among the 10% lowest in the U.S. in terms of controllable expenses, which make up only 15% of its total expenses. Seventy-two cents of every dollar a member pays the cooperative is used to purchase wholesale power, with the remaining 28 cents used for day-to-day operations.
South Plains Electric Cooperative is a vital part of the growth of the South Plains and Rolling Plains of Texas. With a total utility plant investment of $387,144,000, the cooperative ranks in the top 9% in the U.S. and 12th among Texas co-ops. Most electric cooperatives in the U.S. have an average growth expectation of around 0.5% annually, but SPEC experienced 5.13% growth in 2021, making it the 22nd fastest-growing cooperative in the country and 6th fastest in Texas.
South Plains Electric Cooperative is committed to keeping rates low and service reliability high by accessing both the Southwest Power Pool and ERCOT grids.
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Customers experienced blackouts and high bills
South Plains Electric Co-op (SPEC) customers experienced blackouts and high bills due to the February 2021 winter storm that caused a week of historically low temperatures across Texas. SPEC has customers in two separate electric grids, the Southwest Power Pool (SPP) and ERCOT.
SPEC customers in the ERCOT portion of the grid had to endure rolling blackouts for several days, in addition to seven consecutive days of freezing temperatures. Following the blackouts, ERCOT kept electricity prices high—at $9,000 per megawatt-hour—even as power started returning to the grid. This decision, made by the Public Utility Commission and ERCOT, was done to ensure the grid's stability and followed Texas Governor Greg Abbott's directions.
The price increase created billions of dollars of debt for utilities and ratepayers across the state, and many Texans will be paying off this debt in their energy bills for years to come. Brazos Electric, one of the state's largest electricity cooperatives, filed for bankruptcy after receiving a $1.8 billion energy bill, and this likely won't be the only bankruptcy resulting from the Texas freeze.
SPEC officials acknowledged that while their base rates did not increase, customers' usage likely did during the cold snap. They advised customers that their bills would reflect this increased usage, stating:
> "There were eight days in February below freezing and seven of those were consecutive days below freezing, not including wind chill factors. Even if you didn’t turn your heater up any higher than normal, it was still working harder to keep your house warm."
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South Plains Electric is among the lowest for controllable expenses
South Plains Electric Cooperative (SPEC) is a part of ERCOT, the Electric Reliability Council of Texas, which manages the flow of electric power to more than 26 million Texas customers. SPEC has customers in two separate electric grids, the Southwest Power Pool (SPP) and ERCOT.
SPEC is among the largest 3% of cooperatives in the U.S. in terms of its distribution system. It covers 6,600 square miles of service area and has 10,133 miles of line. Despite its size, SPEC manages to keep its rates low by controlling operations and maintenance expenses. It is among the lowest 8% in the U.S. in terms of operations and maintenance expenses, the 5th lowest of similar size in the U.S., and the 7th lowest in Texas.
SPEC also controls administrative and general expenses, placing it in the lowest 24% in the U.S., among the lowest 40% of similar size in the U.S., and among the lowest 33% in Texas. Overall, controllable expenses make up only 15% of its total expenses, placing it among the 10% lowest in the U.S., the 6th lowest of similar size in the U.S., and the 10th lowest in Texas.
SPEC's large commercial members benefit from its extremely competitive rates. SPEC is in the lowest 7% in the U.S., the 4th lowest of similar size in the U.S., and among the lowest 3% in Texas. Its residential electricity rate is 12.08 cents per kilowatt-hour, 21.57% lower than the state's average price of 15.40 cents and 25.11% below the nationwide average of 16.13 cents.
SPEC is committed to providing safe, reliable electric service at the lowest possible cost and empowering members to improve their quality of life.
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The Cooperative is vital to growth in the South Plains
South Plains Electric Cooperative (SPEC) is indeed a part of ERCOT, the Electric Reliability Council of Texas. It is also connected to the Southwest Power Pool (SPP). Serving the South Plains and Rolling Plains of Texas, the Cooperative is vital to the region's growth.
SPEC is among the largest 3% of distribution grids in the U.S., with over 10,000 miles of line. In 2021, it experienced 5.13% growth, making it the 22nd fastest-growing co-op in the country. This growth is a sign of health for the Cooperative, which serves the residential expansion around Lubbock with extremely competitive rates.
SPEC operates efficiently, with all controllable expenses making up just 15% of its total expenses. This efficiency is reflected in its ranking as the 6th lowest of similar cooperatives in the U.S. when it comes to controllable expenses. Seventy-two cents of every dollar a member pays the Cooperative is used to purchase wholesale power, with the remaining 28 cents funding day-to-day operations.
SPEC's wholesale power comes from two generation and transmission cooperatives: Golden Spread Electric Cooperative and Brazos Electric Power Cooperative. Access to both the ERCOT and SPP grids keeps rates low and service reliability high.
SPEC is committed to the Seven Cooperative Principles, including voluntary and open membership, democratic member control, economic participation, autonomy and independence, education and training, cooperation among cooperatives, and concern for the community. This foundation guides its vital role in the South Plains' growth and development.
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Lubbock's grid is no longer under emergency alert
Lubbock's electric grid, the Southwest Power Pool (SPP), was under an energy emergency alert due to the high demand for electricity coupled with controlled outages and rolling blackouts in the region. The alert was a result of a week-long winter storm that brought historically low temperatures to Texas in February 2021. The Southwest Power Pool serves Lubbock and much of the South Plains, and the emergency alert was lifted as the power pool regained generation in other states, allowing them to operate at a higher capacity to meet the demand.
South Plains Electric Cooperative (SPEC) is connected to two power grids in Texas: the Southwest Power Pool and the Electric Reliability Council of Texas (ERCOT). SPEC customers in the ERCOT portion of the grid experienced rolling blackouts for several days, in addition to seven consecutive days of below-freezing temperatures. The cooperative serves the residential growth around Lubbock and is among the largest 3% of distribution grids in the U.S., with over 10,000 miles of lines.
SPEC is a vital part of the growth on the South Plains and Rolling Plains of Texas, with a total utility plant investment of $387,144,000, ranking them in the top 9% in the U.S. In 2021, they experienced 5.13% growth, making them the 22nd fastest-growing cooperative in the country. SPEC operates efficiently, with controllable expenses making up only 15% of its total expenses, and they are among the 10% lowest in the U.S. in this regard.
The emergency alert being lifted in Lubbock is a positive development, as it indicates that the power pool has regained generation and can meet the high demand for electricity in the region. However, SPP and Xcel Energy continue to ask for conservation throughout the region to ensure a stable supply of electricity during this challenging time.
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Frequently asked questions
Yes, South Plains Electric Cooperative (SPEC) is part of ERCOT.
ERCOT stands for the Electric Reliability Council of Texas.
South Plains Electric Cooperative is a vital part of the growth of the South Plains and Rolling Plains of Texas.
Being part of two power grids, including ERCOT, keeps rates low and service reliability high.
South Plains Electric Cooperative is based in Lubbock, Texas.
