8/31/2011

SWEPCO PROPOSES TURK POWER PLANT RATE PLAN IN TEXAS

SHREVEPORT, La., Aug. 31, 2011 – Southwestern Electric Power Co. (SWEPCO), a unit of American Electric Power (NYSE: AEP), today submitted to the Public Utility Commission of Texas (PUCT) a three-step rate plan to recover costs associated with the company’s John W. Turk Jr. Power Plant, located in Southwest Arkansas. The Turk plant is now more than 70 percent complete.

SWEPCO is proposing a three-step rate increase over 21 months totaling about 16 percent for an average residential customer, or around $12.91 per month.

“Based on customer feedback, we are proposing a three-step rate plan in an effort to spread smaller rate increases over a longer period of time, which will help families and businesses better manage their utility bills,” said Venita McCellon-Allen, SWEPCO president and chief operating officer. “The Turk plant is a major addition to the SWEPCO system that will provide reliable base load power to Texas customers for decades to come. We believe that phasing in the costs for such a large investment makes sense for our customers and our company.”

If approved, the request would result in an average increase of about $3.30 (four percent) per month, effective April - October 2012 in the first step of the plan, for a SWEPCO residential customer in Texas using 1,000 kilowatt-hours (kWh) per month.

The second step of the plan from November 2012 through November 2013 would add about $4.00 (five percent) per month, based on 1,000 kWh average bill, bringing the total to around $7.30 per month. 

The final step of the plan would be filing a full base rate case, not limited to the Turk Plant, in May 2013. The monthly increase for the Turk plant-related costs only is expected to be about $5.61 (seven percent) for a residential customer using 1,000 kWh per month. The total overall impact of the Turk Plant rate plan is approximately $12.91 per month, beginning December 2013.

“This SWEPCO three-step plan provides an innovative approach to recovery of the Turk Plant over time, and will save money for customers in the long run,” said McCellon-Allen. “The multiple-step rate plan lessens the impact on customers and allows SWEPCO to strengthen its credit quality earlier than under a single, one-time large rate increase. It protects SWEPCO’s ability to borrow new capital as we make additional investments in the electric system to serve our customers and ensure reliability.”

SWEPCO will continue to be one of the lowest cost providers in Texas even with the requested increase. SWEPCO’s current rates are about 19 percent below the average for comparable Texas utilities and 37 percent below the national average.

The PUCT approved construction of the Turk Plant in July 2008.  As a base load unit, the Turk Plant will use advanced coal combustion technology and is designed to run 24 hours a day and serve demand that exists all the time in the electric system. The Turk Plant is scheduled for completion in the fourth quarter of 2012.       

SWEPCO serves 181,000 customers in East and North Texas, along with customers in western Arkansas and central and Northwest Louisiana for a total of more than 520,400. SWEPCO’s headquarters are in Shreveport, La. News releases and other information about SWEPCO can be found at www.swepco.com.

American Electric Power is one of the largest electric utilities in the United States, delivering electricity to more than 5 million customers in 11 states. AEP ranks among the nation’s largest generators of electricity, owning nearly 38,000 megawatts of generating capacity in the U.S.  AEP also owns the nation’s largest electricity transmission system, a nearly 39,000-mile network that includes more 765 kilovolt extra-high voltage transmission lines than all other U.S. transmission systems combined. AEP’s transmission system directly or indirectly serves about 10 percent of the electricity demand in the Eastern Interconnection, the interconnected transmission system that covers 38 eastern and central U.S. states and eastern Canada, and approximately 11 percent of the electricity demand in ERCOT, the transmission system that covers much of Texas. AEP’s utility units operate as AEP Ohio, AEP Texas, Appalachian Power (in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and Southwestern Electric Power Company (in Arkansas, Louisiana and east and north Texas). AEP’s headquarters are in Columbus, Ohio. News releases and other information about AEP can be found at www.aep.com.

 

This report made by AEP and its Registrant Subsidiaries contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries believe that their expectations are based on reasonable assumptions, any such statements may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. Among the factors that could cause actual results to differ materially from those in the forward-looking statements are: electric load and customer growth; weather conditions, including storms; available sources and costs of, and transportation for, fuels and the creditworthiness and performance of fuel suppliers and transporters; availability of generating capacity and the performance of AEP’s generating plants; AEP’s ability to recover regulatory assets and stranded costs in connection with deregulation; AEP’s ability to recover increases in fuel and other energy costs through regulated or competitive electric rates; AEP’s ability to build or acquire generating capacity (including AEP’s ability to obtain any necessary regulatory approvals and permits) when needed at acceptable prices and terms and to recover those costs through applicable rate cases or competitive rates; new legislation, litigation and government regulation including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances; new legislation, litigation and government regulation including requirements for reduced emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and other substances; timing and resolution of pending and future rate cases, negotiations and other regulatory decisions (including rate or other recovery for new investments, transmission service and environmental compliance); resolution of litigation (including pending Clean Air Act enforcement actions and disputes arising from the bankruptcy of Enron Corp. and related matters); AEP’s ability to constrain operation and maintenance costs; the economic climate and growth in AEP’s service territory and changes in market demand and demographic patterns; inflationary and interest rate trends; AEP’s ability to develop and execute a strategy based on a view regarding prices of electricity, natural gas and other energy-related commodities; changes in the creditworthiness of the counterparties with whom AEP has contractual arrangements, including participants in the energy trading market; actions of rating agencies, including changes in the ratings of debt; volatility and changes in markets for electricity, natural gas and other energy-related commodities; changes in utility regulation, including the potential for new legislation in Ohio and membership in and integration into regional transmission organizations; accounting pronouncements periodically issued by accounting standard-setting bodies; the performance of AEP’s pension and other postretirement benefit plans; prices for power that AEP generates and sells at wholesale; changes in technology, particularly with respect to new, developing or alternative sources of generation; other risks and unforeseen events, including wars, the effects of terrorism (including increased security costs), embargoes and other catastrophic events. 

MEDIA CONTACTS:

SWEPCO Corporate Communications:
Scott McCloud, 318-673-3532
Peter Main, 479-973-2526
Kacee Kirschvink, 318-673-3394

AEP Media Relations and Policy Communications:
Melissa McHenry, 614-716-1120

ANALYSTS CONTACT:
Julie Sherwood
Director, Investor Relations
614-716-2663

More From AEP Ohio

Sign Up Now Pay Online for Free with Paperless Billing

Pay Online for Free with Paperless Billing

Learn More

You wanted a bill that is simple, clear and colorful

How We Restore Power Learn more

How We Restore Power

Find Out How Save Energy. Save Money

Save Energy. Save Money

Visit AEP.com
Use of this site constitutes acceptance of the AEP Terms and Conditions. View our Privacy Policy. © 1996-2019 American Electric Power. All Rights Reserved.

Privacy Policy

Privacy Policy for AEP Ohio, a unit of American Electric Power (AEP)

Scope

This Privacy Policy applies only to AEPOhio.com and the AEP Ohio customer mobile app (com.aep.customerapp.aepohio). Other AEP websites and apps may be governed by their own privacy policies, appropriate to the uses and needs of each. Throughout the site or app, we may provide links to resources and sites that are not part of AEPOhio.com or the AEP Ohio customer mobile app. This Privacy Policy does not apply to those resources and sites.

Consent

By using this site or app, you consent to the terms of this Privacy Policy. Whenever you submit information via this site or app, you agree to the collection, use, and disclosure of that information in accordance with this Privacy Policy.

Information Collected

  1. Passively collected information

    During your use of this site or app, we may collect anonymous information about your visit here through the use of server logs, cookies, scripts, tracking pixels and other Web traffic tracking systems. This information is aggregated and used to improve user experience through analysis of user activities. This information is never combined with any of the personally identifiable information you may provide in your use of the features of this site or app.
  2. Personally identifiable information

    On certain forms of this site or app, you may be asked to provide information about yourself or your account with us, either to identify yourself to us or to request a service from us. In each case, we will inform you what information is provided at your option and what information is required to complete the transaction or activity you are engaged in. If you are unwilling to provide this required information, you will be unable to complete the requested transaction.

Use and disclosure of information

The information you provide to us will be used to respond to requests you may make for services. Some or all of this information may be added to your permanent account record and may be used for research purposes.

In addition, we may use elements of this information in the following situations:

  1. We may transfer the information to AEP Ohio’s affiliates and subsidiaries, unless such transfer is prohibited by law;
  2. We may transfer the information as part of a merger, consolidation, acquisition, divestiture or other corporate restructuring (including bankruptcy);
  3. We may make the information available to third parties who are providing the product, service or information that you have requested (but not your password);
  4. We may make such information available to third parties who are providing services to AEP Ohio (for example, providing the information to third parties performing computer-related services for AEP Ohio);
  5. We may use the information to communicate with you about products and services that may be of interest to you.
  6. We may disclose the information if we form a good-faith belief that disclosure of such information is necessary to investigate, prevent, or take action regarding any illegal activities or regarding interference with the operation of our site or violation of its terms of use; or
  7. We may disclose the information if we believe that disclosure is required by law or regulation or in response to a subpoena or other order of a court or other governmental agency.

AEP Ohio uses Flurry Analytics Service (provided by Yahoo) in order to improve its mobile apps. Flurry’s privacy policy governs the use of this information.

Also, AEP Ohio reserves the right to share any aggregated information (i.e., non-personally identifiable information) with any third parties for any reason, unless prohibited by law.

We will not sell, rent or otherwise disclose the information we gather about you or your account to any third party, except as outlined in this Privacy Policy.

Security

AEP Ohio takes reasonable steps to protect your personally identifiable information as it is transferred to us, through the use of Web technologies such as the Secure Sockets Layer and others. However, no Internet transmission of information is ever completely secure or error-free. In particular, e-mail sent to or from AEP Ohio may not be secure.

How to Reach Us

If you would like to update your personally identifiable information or if you have questions about this privacy policy, please contact us.

Changes to This Policy

AEP Ohio reserves the right to change this Privacy Policy at any time. If this Privacy Policy changes, the revised policy will be posted to this site. Please review this Privacy Policy before you provide any personally identifiable information through this site. Use of our web site after the posting of a revised privacy policy constitutes your consent to the revised policy.

This policy was last revised on December 13, 2017.

Close ×

Sign Up For Alerts

Subscribing to AEP Ohio alerts gives you instant notification for:

  • Billing & Payments - avoid late payments and disconnection
  • Outage Updates - find out if there's an outage at your address and when power will be back on

Win an Xbox One with Alerts!

Enroll in alerts to be eligible to win. Subscribing to I&M alerts gives you instant notification for:

  • Billing & Payments - avoid late payments and disconnection
  • Outage Updates - find out if there's an outage at your address and when power will be back on

Loading video...

×