This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Texas Commission Approves SWEPCO Rates For Increase

SHREVEPORT, La., Nov. 20, 2013 /PRNewswire/ -- The Public Utility Commission of Texas (PUCT) has approved a base rate increase for Southwestern Electric Power Company (SWEPCO), a unit of American Electric Power (NYSE: AEP).

In Texas, the bill for a residential customer using 1,000 kilowatt-hours (kWh) will increase approximately $7.00 per month, or 8.9 percent. The PUCT approved this increase in base rates to recover costs associated with two major power plants and for vegetation management to maintain and ensure reliability.

The changes will begin with December 2013 customer bills, with the increase retroactive to January 29, 2013, which is pursuant to an agreement between the PUCT and SWEPCO in order to allow the Commission and other participating parties more time to review the case. SWEPCO filed the rate increase request in July 2012.

The difference between the amounts billed under the former rates and the new approved rates from February 2013 through November 2013 will be billed to customers through a surcharge implemented at the same time as new rates go into effect. This additional 7.8 percent surcharge (about $6.00) will continue for about 10 months through September 2014.  

SWEPCO completed construction of the 500-megawatt J. Lamar Stall Unit, a natural gas-fueled combined-cycle power plant in Shreveport, La., in 2010. Additionally, the 600-megawatt (SWEPCO owns 440 MW) John W. Turk, Jr. Power Plant, a coal-fueled ultra-supercritical power plant in Hempstead County of Southwest Arkansas, was completed in December 2012. These units are among the first built by SWEPCO in more than 25 years. In 2013, the Turk Power Plant has won several awards, including the Edison Award from Edison Electric Institute; Plant of the Year from Power Magazine; and Project of the Year by Power Engineering Magazine.

"Even with this rate increase, SWEPCO residential rates continue to be among the lowest in Texas, and compare favorably to national averages," said Venita McCellon-Allen, SWEPCO president and chief operating officer.  Residential rates will be approximately 33.6 percent below the national average and 13.7 percent below the state average for comparable investor-owned utilities.

The decision grants SWEPCO an annual increase of $39.4 million, including $5 million marked for vegetation management.  

SWEPCO's original request, filed July 27, 2012, was $83 million for two new power plants and tree trimming. The estimated impact of SWEPCO's original request was $12 per month, or 16 percent, for a residential customer in Texas using 1,000 kilowatt-hours per month.

Base rates refer to 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 the customer's bill, which covers the costs of fuel and purchased power and is a direct pass-through with no profit.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,001.22 -38.27 -0.22%
S&P 500 1,988.40 -3.97 -0.20%
NASDAQ 4,538.5510 +6.4470 0.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs