Swepco asks to increase base rates in Arkansas

Arkansas Business, March 2, 2009 by John Henry

Southwestern Electric Power Co. of Shreveport, a unit of American Electric Power, submitted to the Arkansas Public Service Commission last month a request to increase its non-fuel base rates by $53.9 million.

If approved, the increase in base rates would be Swepco's first in Arkansas in more than 23 years.

Swepco, which serves 113,500 customers in Arkansas, said its current rates are 13 percent below the Arkansas average and 31 percent below the national average.

The request includes a $25.3 million increase in the direct cost of providing service to the company's retail customers, including investments in infrastructure and ongoing operating costs. It also includes about $28.6 million to recover financing costs related to Swepco's ongoing power plant construction program.

If approved, the request would result in an overall increase of $15.43 a month, or 17.7 percent, for a residential customer using 1,000 kilowatt-hours a month. New rates likely would go into effect in late 2009 or early 2010.