SWEPCO requesting 13 percent rate increase
AEP Southwestern Electric Power company submitted a request to the Public Utility Commission of Texas to increase the company’s Texas rates by approximately $69 million annually.
If approved, …
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SWEPCO requesting 13 percent rate increase
AEP Southwestern Electric Power company submitted a request to the Public Utility Commission of Texas to increase the company’s Texas rates by approximately $69 million annually.
If approved, new rates could go into effect mid- to late-2017. Additionally, the overall rates would increase annually by approximately $69 million, an average increase of about 12.7 percent. Residential customers using 1,000 kilowatt hours per month would see an estimated increase of $12.67 per month, or 13 percent. Increases for individual customers will vary depending on each customer’s usage.
A press release from the utility company states that the primary need for new revenue is to cover $34.4 million annually for additional investment in environmental controls at four major power plants. They state the investments are necessary to comply with new U.S. Environmental Protection Agency regulations.
The request includes four major components. Those include environmental controls being made at plants in Pittsburg; Hallsville; Mansfield, Louisiana and Gentry, Arkansas. These will receive the $34.4 million in environmental controls.
The request also includes $8 million for a change in transmission cost recovery to align with actual costs in the southwest power pool. There will also be $2 million for vegetation management to improve reliability, especially during storms, and another $24.5 million for generation, transmission and distribution, and other things.