SWEPCO asks for 12.7 percent rate increase

From Staff Reports

AEP Southwestern Electric Power Company (SWEPCO is asking the Public Utility Commission of Texas (PUCT) to allow it to raise rates 12.7 percent to raise approximately $69 million annually. 
Residential customers using 1,000 kilowatt-hours per month would see an estimated increase of $12.67 per month.  
Increases for individual customers will vary depending on each customer’s usage characteristics.
“We work hard to provide high quality customer service while at the same time managing our costs and continuing to make needed investments in generation, transmission and distribution infrastructure,” SWEPCO president and chief operating officer Venita McCellon-Allen said. 
“We recognize the impact that price increases can have on individuals, families and businesses. We believe our electric rates will continue to provide good value for the money.”
“Even with this proposed increase, SWEPCO rates will be close to the current state average for utilities serving the regulated parts of the state, and still well below the national average,” McCellon-Allen added.
If approved, new rates could go into effect in mid-to-late 2017.
The company said it needs the new revenue is to cover $34.4 million annually for additional investment in environmental controls at four major power plants. SWEPCO said the investments are necessary to comply with new U.S. Environmental Protection Agency (EPA) regulations.
“The goal is always to serve Texas customers with a strong electric system that provides affordable, reliable and safe energy,” McCellon-Allen said. 
“After investing nearly $700 million to fulfill new federal mandates, we believe SWEPCO has responsibly met these environmental and financial challenges in order to maintain a diverse energy mix with reliable 24/7 power sources serving our customers.”
The request includes four major components:
* $34.4 million for new environmental controls at four power plants to comply with EPA mandates. Plant locations include Welsh Plant Units 1 and 3 at Pittsburg, Texas; Pirkey Plant at Hallsville, Texas; Dolet Hills Plant at Mansfield, La.; and Flint Creek Plant at Gentry, Ark.
* $8 million for a change in transmission cost recovery to align with actual incurred regional transmission costs in the Southwest Power Pool – to help ensure reliability and access to affordable power through the regional transmission system.
* $2 million for additional vegetation management dollars to clear transmission and distribution lines and to improve service reliability, especially during storms.
* $24.5 million for additional generation, transmission and distribution investment, and changes in operating costs to continue delivering affordable, reliable and safe energy to homes, businesses and communities.