SHREVEPORT, La., Oct. 14, 2020 – Southwestern Electric Power Company (SWEPCO), an American Electric Power (Nasdaq: AEP) company, has submitted a request to the Public Utility Commission of Texas (PUCT) for a net annual increase of $90.2 million in the company’s non-fuel base rates. On a total customer bill basis, the net increase is approximately 15.6%.
If approved, new rates would likely go into effect in the first billing cycle of January 2022.
For a Texas residential customer using 1,000 kilowatt-hours per month, the request would result in an overall bill increase of approximately $15.71 per month, or 15%.
“We recognize that customers are concerned about their energy costs, especially during the pandemic,” said Malcolm Smoak, SWEPCO president and chief operating officer. “We continually work to balance customers’ expectations about cost and service with the costs necessary to build, maintain and operate a strong and reliable electric system. In the months ahead, the Public Utility Commission and other stakeholders will carefully review our request.”
The request includes investments in generation, transmission and distribution facilities since 2016, plus increased operations and maintenance costs to provide reliable and safe service to Texas customers. It also includes costs related to generating unit retirements, increased tax costs related to accelerated depreciation, and additional funds for vegetation management.
Base rates refer to the costs of building, maintaining and operating SWEPCO’s electric system, including power plants, transmission and distribution lines and facilities to serve customers. Base rates do not include the fuel portion of the customer’s bill, which pays for fuel and purchased power and is a pass-through to customers with no profit to the company.
SWEPCO filed its request at the PUCT on Oct. 13, 2020.
SWEPCO serves 187,600 customers in northeast Texas and the Texas Panhandle.
About Southwestern Electric Power Co. (SWEPCO)
SWEPCO, an American Electric Power (AEP: NYSE) company, serves more than 543,000 customers in northwest and central Louisiana, northeast Texas and the Texas Panhandle, and western Arkansas. SWEPCO’s headquarters are in Shreveport, La. News releases and other information about SWEPCO can be found at SWEPCO.com. Connect with us at Facebook.com/SWEPCO, Twitter.com/SWEPCOnews, Instagram.com/swepco, Youtube.com/SWEPCOtv, LinkedIn.com/company/swepco and SWEPCOConnections.com.
About American Electric Power (AEP)
American Electric Power, based in Columbus, Ohio, is focused on building a smarter energy infrastructure and delivering new technologies and custom energy solutions to our customers. AEP’s approximately 17,400 employees operate and maintain the nation’s largest electricity transmission system and more than 221,000 miles of distribution lines to efficiently deliver safe, reliable power to nearly 5.5 million regulated customers in 11 states. AEP also is one of the nation’s largest electricity producers with more than 30,000 megawatts of diverse generating capacity, including approximately 5,300 megawatts of renewable energy. AEP’s family of companies includes utilities AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana, east Texas and the Texas Panhandle). AEP also owns AEP Energy, AEP Energy Partners, AEP OnSite Partners, and AEP Renewables, which provide innovative competitive energy solutions nationwide. For more information, visit aep.com.
MEDIA CONTACTS:
SWEPCO Corporate Communications
Carey Sullivan (318) 673-3458
Peter Main (479) 973-2526
ANALYST CONTACT:
AEP Investor Relations
Darcy Reese, (614) 716-2614