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Arkansas Electric Rates

These tariffs are available only to customers of Southwestern Electric Power Company, which is registered to do business in Arkansas as American Electric Power. If you have questions about these tariffs, please contact AEP customer service at 1.888.216.3523.

New SWEPCO Arkansas Rates

The Arkansas Public Service Commission (APSC) approved a base rate increase for SWEPCO.

The base rate increase reflects investments in reliability and resiliency improvements in the power grid and cleaner power generation, including the construction and purchase of three wind facilities at the North Central Energy Facilities (NCEF) in Oklahoma. The NCEF provides Arkansas customers 268 megawatts (MW) of SWEPCO’s 809 MW.

Background

On July 23, 2021, SWEPCO submitted a request to the Arkansas Public Service Commission (APSC) to update our rates. We sought to recover environmental and resiliency costs associated with providing customers cleaner and more reliable energy.

The request included recent investments in transmission and distribution facilities. It reflected costs to operate and maintain equipment that delivers power to you. It established new tariffs for electric vehicles, lighting and other measures.

Benefits For You

It's all about keeping the power flowing to homes and businesses across Arkansas and improving your service. The electric grid is the most complex and universally relied-on machine ever built. Technological innovation, security and resiliency are core components of this backbone that powers more than 122,000 homes and businesses in Arkansas.

Cleaner Energy

We have made significant investments in renewable energy, specifically the North Central Energy Facilities (NCEF) project that includes three wind facilities. This project has environmental and economic benefits for you, saving an estimated $2 billion over the next 30 years.

The Arkansas Public Service Commission (APSC) approved the project in May 2020. The first wind facility began commercial operation in 2021 with the last and largest facility beginning operation in March 2022.

With no fuel cost for wind, the new wind facilities lower our overall fuel cost for power generation, resulting in savings in the fuel portion of your bills. The fuel savings help to offset the cost of the new facilities, resulting in long-term savings to customers.

FAQS

The new base rates for an Arkansas residential customer using 1,000 kilowatt-hours (kWh) will increase approximately $10.57 per month, or 9.49% or 1.06 cents per kWh. The increase began with the first July billing cycle, which began on June 29, 2022.

Residential (1,000 kWh/month) 9.49%
Small Commercial (2,000 kWh/month) 7.93%
Commercial/Industrial (400,000 kWh/month) 10.29%

Lighting and some industrial customer classes will see a total bill decreases while commercial and municipal classes will see varying increases based upon individual usage characteristics.

The new base rate reflects investments in reliability and improvements to the resiliency of the power grid and cleaner power generation, including the construction and purchase of three wind facilities at the North Central Energy Facilities (NCEF) in Oklahoma. All three wind facilities are in commercial operation, with the third and largest facility beginning operation in March 2022. The NCEF, which was approved by the APSC in May 2020, provides Arkansas customers 268 megawatts (MW) of SWEPCO’s 809 MW.

Base rates refer to the costs of building, maintaining and operating SWEPCO’s electric system. These costs pay for the generation, transmission and distribution system - the power plants, substations, poles and wires you see in your community - along with all of the costs it takes to keep this system running. These costs also include reading meters, producing bills and customer service activities. Base rates do not include the fuel portion of your bill, which pays for fuel and purchased power and is a direct pass-through to customers.

No. The fuel portion of a customer’s bill is the cost of fuel used to generate electricity and the cost of purchased power. It is a direct pass-through to customers and is separate from base rates. The fuel factors used to calculate the fuel charge on a customer’s bill are typically adjusted annually and are subject to review by the APSC.

No. The extraordinary costs of fuel to generate electricity during the February 2021 winter storm were not part of the proposed base rate increase. However, SWEPCO separately requested an interim adjustment to the Energy Cost Recovery (ECR) rate to help “true-up” the extraordinary 2021 winter weather event interest rate costs. The APSC granted the adjustment, which resulted in an approximate increase of $2.45 per month for Arkansas residential customers using 1,000 kWh. This increase also began appearing on bills with the first July billing cycle, which began on June 29, 2022.

To minimize the impact on customers’ bills, SWEPCO is spreading the cost over five years, which began in April 2021. SWEPCO expects the fuel recovery costs to decrease in 2023 and throughout the remaining years.

SWEPCO filed the base rate request with the APSC on July 23, 2021. The APSC issued its Order on May 23, 2022 authorizing an annual increase of $48.7 million, and approved the tariffs in its Order issued on June 29, 2022.

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