SWEPCO Seeks Base Rate Increase in Texas

SHREVEPORT, La., Dec. 16, 2016 – AEP Southwestern Electric Power Company (SWEPCO), a unit of American Electric Power (NYSE: AEP), today submitted a request to the Public Utility Commission of Texas (PUCT) to increase the company’s Texas rates by approximately $69 million annually. If approved, new rates could go into effect in mid-to-late 2017.

The primary need for new revenue is to cover $34.4 million annually for additional investment in environmental controls at four major power plants. 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,” said Venita McCellon-Allen, SWEPCO President and Chief Operating Officer. “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.  

If approved by the PUCT, overall rates would increase annually by approximately $69 million, an average increase of about 12.7 percent. This is the net amount of the proposed annual base rate increase of $105.9 million minus $36.9 million for existing transmission and distribution charges that are currently shown as line items on customers’ bills and will be moved to base rates. Base rates reflect the costs of building, maintaining and operating SWEPCO’s electric system, including power plants, transmission and distribution lines, and facilities to serve customers. Base rates do not include the fuel portion of customers’ bills, which pays for fuel and purchased power and is passed through to customers with no profit to the company.

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 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. 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,” McCellon-Allen said.

“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 said.

SWEPCO serves 530,000 customers, including 184,000 in East Texas and the Panhandle, 230,000 in northwestern and central Louisiana and 116,000 in western Arkansas. The company’s headquarters are in Shreveport, La. More information is available at SWEPCO.com.

American Electric Power is one of the largest electric utilities in the United States, delivering electricity and custom energy solutions to nearly 5.4 million customers in 11 states. AEP owns the nation's largest electricity transmission system, a more than 40,000-mile network that includes more 765-kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP also operates 224,000 miles of distribution lines. AEP ranks among the nation's largest generators of electricity, owning approximately 31,000 megawatts of generating capacity in the U.S. AEP also supplies 3,200 megawatts of renewable energy to customers. AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east Texas). AEP's headquarters are in Columbus, Ohio.


SWEPCO Corporate Communications:
Peter Main, 479-973-2526
Scott McCloud, 318-673-3532

AEP Investor Relations
Bette Jo Rozsa, 614-716-2840
Bradley Funk, 614-716-3162

More From SWEPCO

Find Out More

Predictable Monthly Bills

Learn More

Mobile App

How We Restore Power Learn more

How We Restore Power

Learn the steps SWEPCO takes to quickly and safely get the power back on

Find Out How Save Energy. Save Money

Save Energy. Save Money

Visit AEP.com
Use of this site constitutes acceptance of the AEP Terms and Conditions. View our Privacy Policy. © 1996-2015 American Electric Power. All Rights Reserved.

Privacy Policy

Privacy Policy for Southwestern Electric Power Company (SWEPCO), a unit of American Electric Power (AEP)


This Privacy Policy applies only to SWEPCO.com and the Southwestern Electric Power Company customer mobile app (com.aep.customerapp.swepco). Other AEP websites and apps may be governed by their own privacy policies, appropriate to the uses and needs of each. Throughout the site or app, we may provide links to resources and sites that are not part of SWEPCO.com or the Southwestern Electric Power Company customer mobile app. This Privacy Policy does not apply to those resources and sites.


By using this site or app, you consent to the terms of this Privacy Policy. Whenever you submit information via this site or app, you agree to the collection, use, and disclosure of that information in accordance with this Privacy Policy.

Information Collected

  1. Passively collected information

    During your use of this site or app, we may collect anonymous information about your visit here through the use of server logs, cookies, scripts, tracking pixels and other Web traffic tracking systems. This information is aggregated and used to improve user experience through analysis of user activities. This information is never combined with any of the personally identifiable information you may provide in your use of the features of this site or app.
  2. Personally identifiable information

    On certain forms of this site or app, you may be asked to provide information about yourself or your account with us, either to identify yourself to us or to request a service from us. In each case, we will inform you what information is provided at your option and what information is required to complete the transaction or activity you are engaged in. If you are unwilling to provide this required information, you will be unable to complete the requested transaction.

Use and disclosure of information

The information you provide to us will be used to respond to requests you may make for services. Some or all of this information may be added to your permanent account record and may be used for research purposes.

In addition, we may use elements of this information in the following situations:

  1. We may transfer the information to SWEPCO’s affiliates and subsidiaries, unless such transfer is prohibited by law;
  2. We may transfer the information as part of a merger, consolidation, acquisition, divestiture or other corporate restructuring (including bankruptcy);
  3. We may make the information available to third parties who are providing the product, service or information that you have requested (but not your password);
  4. We may make such information available to third parties who are providing services to SWEPCO (for example, providing the information to third parties performing computer-related services for SWEPCO);
  5. We may use the information to communicate with you about products and services that may be of interest to you.
  6. We may disclose the information if we form a good-faith belief that disclosure of such information is necessary to investigate, prevent, or take action regarding any illegal activities or regarding interference with the operation of our site or violation of its terms of use; or
  7. We may disclose the information if we believe that disclosure is required by law or regulation or in response to a subpoena or other order of a court or other governmental agency.

SWEPCO uses Flurry Analytics Service (provided by Yahoo) in order to improve its mobile apps. Flurry’s privacy policy governs the use of this information.

Also, SWEPCO reserves the right to share any aggregated information (i.e., non-personally identifiable information) with any third parties for any reason, unless prohibited by law.

We will not sell, rent or otherwise disclose the information we gather about you or your account to any third party, except as outlined in this Privacy Policy.


SWEPCO takes reasonable steps to protect your personally identifiable information as it is transferred to us, through the use of Web technologies such as the Secure Sockets Layer and others. However, no Internet transmission of information is ever completely secure or error-free. In particular, e-mail sent to or from SWEPCO may not be secure.

How to Reach Us

If you would like to update your personally identifiable information or if you have questions about this privacy policy, please contact us.

Changes to This Policy

SWEPCO reserves the right to change this Privacy Policy at any time. If this Privacy Policy changes, the revised policy will be posted to this site. Please review this Privacy Policy before you provide any personally identifiable information through this site. Use of our web site after the posting of a revised privacy policy constitutes your consent to the revised policy.

This policy was last revised on December 13, 2017.

Close ×

Sign Up For Alerts

Subscribing to SWEPCO alerts gives you instant notification for:

  • Billing & Payments - avoid late payments and disconnection
  • Outage Updates - find out if there's an outage at your address and when power will be back on

Win an Xbox One with Alerts!

Enroll in alerts to be eligible to win. Subscribing to I&M alerts gives you instant notification for:

  • Billing & Payments - avoid late payments and disconnection
  • Outage Updates - find out if there's an outage at your address and when power will be back on

Loading video...