SHREVEPORT, La. (Feb. 28, 2022) – The Public Utility Commission of Texas has approved a base rate increase for Southwestern Electric Power Co., a unit of American Electric Power (Nasdaq: AEP).
The PUCT approved the increase in base rates to recover SWEPCO’s investments in generation, transmission and distribution facilities since 2016, plus increased operations and maintenance costs to provide reliable and safe service to Texas customers. The Commission also approved cost recovery for the Dolet Hills Power Plant, which was retired Dec. 31, 2021.
The bill for a Texas residential customer using 1,000 kilowatt-hours (kWh) will increase approximately $8.31 per month, or 8.48%. The increase will begin with bills issued March 1.
The overall increase includes new base rates, a surcharge to recover retroactive amounts for the base rate increase, and cost recovery for the retirement of the Dolet Hills Power Plant. By Texas law, new rates are retroactive to March 18, 2021. The surcharge for the retroactive amounts will be in effect for an estimated six months. The PUCT found the early retirement of Dolet Hills to be prudent and established cost recovery separate from base rates through a rate rider, estimated to be in effect through 2046, the previously PUCT-approved life for the plant.
For commercial, industrial, municipal and lighting rate classes, the new base rate impacts vary by rate class and usage characteristics.
“The base rate increase is necessary for SWEPCO to continue meeting customers’ expectations and to maintain and operate a strong, reliable electric system,” said SWEPCO President and Chief Operating Officer Malcolm Smoak.
“We recognize that customers are concerned about their energy costs, especially during the pandemic,” said Smoak. “We will continue to work with customers to help them stay on track with their electric bills.”
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 passed through to customers with no profit to the company.
SWEPCO filed its request at the PUCT on Oct. 13, 2020. The PUCT decision authorized an annual increase of $41.6 million in its Nov. 18, 2021, order and Jan. 14, 2022, final order.
SWEPCO serves 187,500 customers in Northeast Texas and the Texas Panhandle.
About Southwestern Electric Power Co. (SWEPCO)
SWEPCO, an American Electric Power (Nasdaq: AEP) 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 and LinkedIn.com/company/swepco.
About American Electric Power (AEP)
American Electric Power, based in Columbus, Ohio, is powering a cleaner, brighter energy future for its customers and communities. AEP’s approximately 16,700 employees operate and maintain the nation’s largest electricity transmission system and more than 224,000 miles of distribution lines to safely deliver reliable and affordable power to 5.5 million regulated customers in 11 states. AEP also is one of the nation’s largest electricity producers with approximately 31,000 megawatts of diverse generating capacity, including more than 5,900 megawatts of renewable energy. The company’s plans include growing its renewable generation portfolio to approximately 50% of total capacity by 2030. AEP is on track to achieve an 80% reduction in carbon dioxide emissions from 2000 levels by 2030 and has committed to achieve net zero by 2050. AEP is recognized consistently for its focus on sustainability, community engagement, and diversity, equity and inclusion. 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, which provides innovative competitive energy solutions nationwide. For more information, visit aep.com.