SWEPCO Rate Hike Sparks Outrage at Arkansas Hearing
Southwestern Electric Power Co. (SWEPCO)—a utility that purchases a significant portion of its power from Oklahoma wind projects—now faces intense criticism from customers after the company attempted to raise electric rates by nearly 14%.
Customers Blast SWEPCO’s Request at Public Hearing
Ratepayers confronted SWEPCO officials during a heated Arkansas Public Service Commission hearing at the Northwest Arkansas Community College’s Washington County campus in Springdale. Many attendees condemned what they view as an unreasonable jump in monthly bills.
SWEPCO originally filed to raise residential rates by 27.3%, a move that sparked outrage statewide. After negotiations and public pressure, the utility revised its request down to 13.8%, but customers still argued the increase would strain household budgets. The proposed hike would add nearly $17.50 per month for the average residential customer.
SWEPCO, a subsidiary of American Electric Power (AEP)—the same Ohio-based parent company of Public Service Company of Oklahoma—serves 558,400 customers across western and northwestern Arkansas as well as parts of Louisiana and Texas.
Oklahoma Wind Power Plays a Significant Role in SWEPCO’s Portfolio
Although SWEPCO serves some Oklahoma customers, its largest Oklahoma presence comes through utility-scale renewable development. The company relies heavily on projects like the Wagon Wheel Wind Farm, a nearly 600 MW wind project under construction by Invenergy in north-central Oklahoma.
This massive project spans Garfield, Kingfisher, Logan, Noble, and Payne counties and is expected to begin operation in late 2025. The facility includes 176 turbines and represents one of the most substantial renewable energy investments tied to SWEPCO and AEP’s long-term resource strategy.
SWEPCO frames its renewable expansion as a step toward cleaner energy and long-term cost stability, but protesters argued that the company now shifts too much of that cost burden onto consumers.
Ongoing Debate Over Utility Rates and Renewable Investments
Many ratepayers told the Commission they support renewable energy but reject what they see as “rate shock” tied to major capital investments. Policy advocates at the hearing argued that Arkansas families deserve more transparent rate-setting and stronger consumer protections.
The Arkansas Democrat-Gazette reported broad frustration with utility rate increases across the state, particularly as electric consumption rises and inflation impacts household budgets.
Regulators will continue reviewing SWEPCO’s proposal in the coming months, and ratepayers in Arkansas—and Oklahoma—will watch closely to see whether the company adjusts its request again.
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SOURCE: Arkansas Democrat Gazette
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