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Arkansas regulators approve $23.9M base rate increase for SWEPCO

The Arkansas Public Service Commission approved a net annual increase of $23.9 million in nonfuel base rates for Southwestern Electric Power Co., effective Dec. 31, 2019.

A typical residential customer using 1,000 kWh per month will see an overall 8.7% bill increase amounting to approximately $8.43 per month.

The American Electric Power Co. Inc. in October 2019 filed a settlement agreement with the state regulator that provided for a net annual increase of $24.1 million in nonfuel base rates.

Southwestern Electric Power Co., or SWEPCO, originally sought a net annual increase of $45.6 million in nonfuel base rates and an additional $12 million for vegetation management.

The commission also approved a formula rate plan for a five-year term, beginning 2021, and moved into base rates $28.9 million of costs recovered through separate charges.

"The formula rate plan, as provided by Arkansas law, better aligns the company's rates with its costs on an annual basis, which promotes greater rate stability and reduces the potential for large rate swings associated with general rate cases," SWEPCO President and COO Malcolm Smoak said.