Texas Rate Review

SWEPCO is proposing new rates to serve Texas customers with a strong and reliable electric system. On Sept. 13, 2020, SWEPCO 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%.

How will this affect customers’ bills?

If approved as proposed, the request would result in an overall bill increase of approximately $15.71 per month, or 15%, for a Texas residential customer using 1,000 kilowatt-hours per month. Increases for individual customers will vary depending on each customer’s usage characteristics.

Here are the proposed increases in total bill by major rate class:

Residential15.64%
Commercial16.82%
Industrial13.28%
Commercial & Industrial15.90%
Municipal5.84%
Lighting10.57%

When would new rates go into effect?

If approved, new rates will likely go into effect in the first billing cycle of January 2022.

Why seek new rates now?

We recognize that customers are concerned about their energy costs, especially during the pandemic. 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. We are making the rate filing to better align SWEPCO’s revenues with the cost of providing service and to position SWEPCO to provide safe, reliable and efficient service to customers now and in the years to come.

What is included in the rate 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.

What are base rates?

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 serves 187,600 customers in northeast Texas and the Texas Panhandle.

What happens next?

The rate request begins a lengthy public review process by the Public Utility Commission of Texas (PUCT). New rates, if approved, likely would not go into effect until January 2022.