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SWEPCO rate increase

Electric · Arkansas, Louisiana, Texas · Investor-owned utility · part of American Electric Power

Proposed

Last checked

In Arkansas, SWEPCO has a pending increase of about +$4.48/month for a typical 890 kWh home starting January 31, 2027, if regulators approve the request.

Details and sources · Estimate for your home

Rate changes, newest first

2026 formula rate review filing (Arkansas, rates for 2027)

Other · Arkansas · Electric

Proposed

Typical residential bill (890 kWh/month)

  • +$4.48/mostarting January 31, 2027 (+3.22%)SWEPCO testimony: net increase on an average residential customer's total bill at 890 kWh, after the 4% cap.

Proposed amounts; regulators may change them.

Filed
August 4, 2026
Decision expected
January 11, 2027
Requested effective
January 31, 2027
Requested increase
$15 million
Approved increase
Pending
Docket
26-043-FR

In its first formula rate review under the plan approved in its 2025 Arkansas rate case, SWEPCO's formula showed a $51.1M revenue shortfall, but the 4% cap limits the request to $15.0M. SWEPCO puts the average residential impact at +$4.48/month (3.22%) at 890 kWh. It asked for an order by Jan 11, 2027; otherwise the rates take effect Jan 31, 2027, subject to refund.

Utility's stated reasons

  • 2025 earned return of 4.63% vs a 9.65% target
  • generation, transmission, distribution and IT investment
Sources (3) · Verified against regulator or utility filings

Last verified Sep 29, 2026

Interim vegetation management charge, extended pending System Improvement Plan (Louisiana)

Interim rates · Louisiana · Electric

Approved

Typical residential bill (1,000 kWh/month)

  • +$2.91/modate not disclosedSWEPCO's president told the LPSC the $18M interim charge equals $2.91 per 1,000 kWh. The April 2026 vote extended an interim charge first approved in April 2025, so this isn't a new increment.
Filed
November 24, 2025
Decided
April 15, 2026
Effective
June 1, 2026
Requested increase
$18 million
Approved increase
$18 million
Docket
U-37794

In April 2025 the LPSC let SWEPCO collect about $18M a year on an interim basis for extra tree trimming in Louisiana. On April 15, 2026 it voted 4-1 to extend that interim charge, subject to refund and collected through the fuel clause from June 1, 2026, until it rules on SWEPCO's pending System Improvement Plan for grid hardening. SWEPCO put the charge at $2.91 per 1,000 kWh.

Utility's stated reasons

  • extra tree trimming to cut tree-related outages
  • bridge until the proposed System Improvement Plan is decided
Sources (4) · Based on news or utility announcements

Last verified Sep 29, 2026

2025 base rate case (Arkansas)

Base rate case · Arkansas · Electric

Approved

Typical residential bill (1,000 kWh/month)

  • +$17.51/mostarting February 2026 (+13.8%)SWEPCO settlement testimony: total bill including fuel at 1,000 kWh. At the Nov 2025 hearing SWEPCO said the average residential increase would be $24.32 at current fuel rates (APSC Order No. 17).
Filed
March 28, 2025
Decided
January 23, 2026
Effective
February 2026
Requested increase
$114.4 million
Approved increase
$85.4 million
Docket
25-003-U

SWEPCO sought $114.4M at a 10.9% ROE and chose a formula rate review plan for future years. The APSC approved a settlement on Jan 23, 2026 for $85.4M at a 9.65% ROE, recovering the retired Pirkey plant over 10 years at a 3% return; new tariffs followed in February 2026. SWEPCO estimated +$17.51/month (13.8%) at 1,000 kWh but later cited other figures (see note).

Utility's stated reasons

  • Diversion and Wagon Wheel wind farms
  • production, transmission and distribution investment
  • smart meter rollout
  • retired Pirkey coal plant costs
Sources (5) · Verified against regulator or utility filings

Last verified Sep 29, 2026

2025 base rate case (Texas)

Base rate case · Texas · Electric

Settlement pending

Typical residential bill (1,000 kWh/month)

  • +$16.43/modate not disclosed (+12.15%)As filed: SWEPCO's notice estimate for the total residential bill, including fuel and riders. The settlement's bill impact has not been published.

Proposed amounts; regulators may change them.

Filed
October 14, 2025
Decision expected
2026
Requested effective
Not disclosed
Requested increase
$94.94 million
Approved increase
Pending
Docket
58819

SWEPCO asked the PUCT for a $163.9M Texas base rate increase. After moving existing rider revenue into base rates, the net increase is $94.9M, about +$16.43/month on a 1,000-kWh bill. PUCT staff and intervenors proposed cuts, and all parties reached a settlement in principle in April 2026. Its terms aren't public. AEP expects a PUCT order in Q4 2026.

Utility's stated reasons

  • grid investment since the 2020 Texas rate case
  • recovery of the retired Pirkey coal plant
  • storm cost recovery and a larger self-insurance reserve
  • requested 10.75% return on equity
Sources (3) · Verified against regulator or utility filings

Last verified Sep 29, 2026

What it could mean for your bill

Sources state the impact for one typical home. Enter your own usage or bill for a rough estimate.

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Who decides

Utility website: www.swepco.com

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Last checked Oct 2, 2026. Spotted something out of date? Tell us.