Southwestern Electric Power Co. (SWEPCO) customers will see their base electricity rates increase in 2020.
The Arkansas Public Service Commission has approved a new rate increase of approximately $8.43 per month for every 1,000 kilowatt-hours used. The rate increase is expected to generate $23.9 million in non-fuel base rates.
However, rate increases will depend on rate class and electricity usage. Rates are set to go into effect on Tuesday, Dec. 31.
“Our goal is always to serve Arkansas customers and communities with a strong electric system that provides reliable and safe energy,” said Malcolm Smoak, SWEPCO president and chief operating officer. “We work hard to balance the need to invest in the electric system with the need to manage our operating costs. We are committed to high quality service for the families, businesses and communities we serve in Arkansas.”
According to a SWEPCO news release, the base rate increase will move approximately $28.9 million in costs that are currently recovered through separate charges on customers’ bills. These include the costs for power plant environmental controls completed between 2013 and 2016 to meet federal mandates, plus construction of a high-efficiency, combined cycle natural gas plant, completed in 2010.
Headquartered in Shreveport, La, SWEPCO services roughly 535,000 customers in Louisiana, western Arkansas, East Texas and the Panhandle region of Texas.