Arkansas regulators approve SWEPCO rate hike for power upgrades
Arkansas customers served by Southwestern Electric Power Company (SWEPCO) will see higher monthly electric bills after the Arkansas Public Service Commission (PSC) approved an $85 million rate increase for the utility.
According to reporting by the Arkansas Times, the rate hike will raise the average residential customer’s monthly bill by about $24, impacting more than 120,000 SWEPCO customers across Arkansas. The increase follows a contested regulatory process that drew opposition from residents and environmental advocates concerned about affordability and long-term energy planning.
Rate increase tied to infrastructure and generation costs
SWEPCO told regulators the additional revenue is needed to cover a range of expenses, including payments tied to out-of-state wind generation, coal plant improvements, and system-wide infrastructure upgrades designed to maintain reliability.
Company filings indicated the investments were necessary to meet regulatory requirements, manage rising operational costs, and ensure continued service across SWEPCO’s Arkansas territory.
Despite objections, the three-member Public Service Commission voted to approve the increase, concluding the utility had justified the request under state ratemaking standards.
Public opposition raised affordability concerns
The rate case drew vocal opposition during the review process. Customers and environmental advocates testified at a December public hearing in Springdale, urging commissioners to reject or reduce the proposed increase.
Opponents argued the higher bills would strain household budgets, particularly for lower-income customers, while questioning the wisdom of continued investments in fossil fuel infrastructure at a time of rising renewable energy adoption.
Several speakers also criticized SWEPCO’s reliance on generation resources located outside Arkansas, saying in-state customers were being asked to shoulder costs without receiving proportional benefits.
Flint Creek coal plant upgrades approved
As part of the rate decision, regulators also approved capital upgrades to SWEPCO’s Flint Creek coal-fired power plant near Gentry, a facility that has long been a focal point of environmental scrutiny.
The approved improvements could allow the Flint Creek plant to remain operational until at least 2038, extending the life of one of the state’s remaining coal facilities. SWEPCO has argued the plant continues to play a role in maintaining grid reliability, particularly during periods of peak demand.
Environmental groups, however, have warned that extending the plant’s lifespan could delay Arkansas’ transition to cleaner energy sources and lock customers into long-term costs tied to aging infrastructure.
Broader regional implications
The decision comes as utilities across the region face increasing pressure from rising fuel costs, grid modernization needs, and regulatory mandates, often resulting in higher rates for consumers.
SWEPCO operates across multiple states, including Arkansas, Texas, and Louisiana, and its Arkansas rate case is being closely watched by stakeholders concerned about how utilities balance reliability, affordability, and evolving energy policies.