SWEPCO seeks rate increase in Arkansas to cover environmental, resiliency costs
In an effort to recover environmental and resiliency costs linked to clean energy efforts, Southwestern Electric Power Co. (SWEPCO) has requested the Arkansas Public Service Commission (APSC) allow it to raise rates by about $18.89 per month for the average residential customer.
While new base rates wouldn’t likely go into effect until the first billing cycle of June 2022, residential customers using an average of 1,000 kilowatt-hours per month would see a total bill increase of around $130.20 for the year or around a 17 percent increase. While this primarily helps with SWEPCO’s investments into wind facilities, it will also help the company cover its winter storm costs from 2021, which amounted to about $7.72 per month for residential customers using that same 1,000 kilowatt-hour per month average.
Base rates tend to cover building costs, as well as maintenance and operation of the electric system.
“We have made significant investments in wind-powered generation, specifically with the North Central Energy Facilities (NCEF) project,” SWEPCO President and COO Malcolm Smoak said. “It’s a project that has environmental and economic benefits for SWEPCO’s customers, saving an estimated $2 billion over the next 30 years.”
NCEF consists of three wind facilities, one of which is currently operating. The other two are expected to begin later this year and in early 2022, respectively. All told, they provide 810 MW to the company and lower SWEPCO’s fuel costs as well, since wind doesn’t require any fuel. APSC approved the project in May 2020.
With the base rate request, though, SWEPCO has sought a total update of $85 million. Beyond the costs previously mentioned, this request covers investments in transmission and distribution facilities, operations costs, and the creation of new tariffs for electric vehicles, lighting, and other measures.
