Arkansas News Bureau
LITTLE ROCK — Customers of Southwestern Electric Power Co. will see their bills increase by an average of $7 per month, or $84 per year, as a result of two rate increases approved by the Arkansas Public Service Commission, SWEPCO said Wednesday.
The first increase will take effect with December bills. A residential customer who uses 1,000 kilowatt-hours per month will see a monthly increase of 5.15 percent, or $3.84, as a result of a base rate increase approved by the Public Service Commission on Tuesday, the company said.
The commission also gave SWEPCO approval to recover costs of the J. Lamar Stall Unit, a 508-megawatt, natural gas-fueled power plant under construction in Shreveport, La.
When the $386 million plant is completed in the summer of 2010, residential customers will see another billing increase of approximately $3.17, or about 4.26 percent.
The increases will allow SWEPCO to collect an additional $17.8 million annually from the base rate increase and $11 million annually in cost recovery.
SWEPCO’s original request included recovery of costs related to construction of the proposed John W. Turk Jr. Power Plant in Hempstead County, but the Public Service Commission approved a settlement agreement that did not include a rate hike to cover those costs.
The state Court of Appeals denied a state permit to the plant in July, and SWEPCO is appealing that decision to the state Supreme Court.
SWEPCO’s original request totaled $53.9 million and would have resulted in a billing increase of $15.43 per month for residential customers using 1,000 killowatt-hours per month.
“If the certificate for the Turk Plant is confirmed by the Arkansas Supreme Court, SWEPCO will return to the APSC with a request for recovery of financing costs during construction of the plant,” SWEPCO said in a news release.
Base rates refer to the costs of building, maintaining and operating SWEPCO’s electric system and do not include fuel costs. SWEPCO said its billing increases over the past 24 years have been related to fuel costs, but base rates have not increased in that time.
