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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.

Arkansas 2023 Formula Rate Review Filing

The Arkansas Public Service Commission ("APSC") has approved the Application of a Rate Adjustment and Evaluation Report filed by Southwestern Electric Power Company ("SWEPCO"), on April 14, 2023, pursuant to its Rate Schedule No. 50, Formula Rate Review Rider ("Rider FRR"). The Company requests a proposed Rider FRR Rate Adjustment of $15.3 million. The proposed Rate Adjustment shall become effective for bills calculated on and after October 15, 2023.


In June 2022, 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.

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.

In February 2022, SWEPCO announced plans to add 72.5 MW of solar energy by 2024 through a power purchase agreement (PPA) with the development of the Rocking R Solar Facility. The project is subject to regulatory approval by the APSC.

In May 2022, SWEPCO announced plans to add 999 MW of wind and solar energy by the end of 2025 with the development and subsequent purchase of three facilities in Louisiana, Texas and Oklahoma. The project is subject to regulatory approvals.

SWEPCO issued two Request for Proposals (RFPs) in September 2022 of up to 2,400 MW of additional wind and solar energy through purchase-power agreements. All projects are subject to regulatory approvals.

The addition of wind and solar energy will help lower our overall fuel costs 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.


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.

Arkansas base rates were updated in June 2022 and can be found here

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.

The Energy Cost Recovery (ECR) rate is typically set annually in the spring based on a 12-month market forecast for SWEPCO's cost to purchase fuel to generate electricity. SWEPCO can request adjustments throughout the year if the cost of fuel is significantly higher or lower than the annual rate set for customers. This rate is located on your "fuel" line item.

The cost to purchase fuel is passed directly through to customers with no profit to the company.

As of April 1, 2022, SWEPCO's energy mix is 40% coal/lignite, 39% natural gas and 21% wind. SWEPCO's long-term strategy calls for more than one-third of its accredited capacity to be satisfied with wind and solar resources.

The cost to purchase fuel is a key driver impacting customers' bills based on normal usage. When these costs increase, it can also lead to an increase in customers' bills, as the cost is passed directly through to customers at no profit to the company.

Adding more renewable energy helps reduce our reliance on purchasing fuel to generate electricity. As we increase our generation mix to include more wind and solar energy, we can help offset the cost to purchase fuel and ultimately provide savings to our customers.

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