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Southwestern Electric Power seeks 12.7% rate hike in Texas

Southwestern Electric Power Co. on Dec. 16 asked the Public Utility Commission of Texas to approve a rate increase of approximately 12.7%, to go into effect in mid-to-late 2017.

The American Electric Power Co. Inc. subsidiary said the new revenue is needed to recover $34.4 million annually for additional environmental controls at its Welsh, Pirkey, Dolet Hills and Flint Creek power plants to comply with new U.S. Environmental Protection Agency regulations.

Southwestern said it needs to spend an additional $24.5 million on its generation, transmission and distribution facilities and on increased operating costs. The utility said another $8 million is needed to recover increased transmission costs, and it needs to spend another $2 million to clear its transmission and distribution lines of trees and other vegetation to prevent power outages during storms.

If the $69 million annual rate increase is approved, residential customers using 1,000 kWh per month would see an estimated increase of $12.67 per month, or 13%.