HomeMy WebLinkAbout123-25 RESOLUTION113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Resolution: 123-25
File Number: 2025-711
SWEPCO (RATE CASE INTERVENTION):
A RESOLUTION TO AUTHORIZE THE CITY ATTORNEY TO FILE A MOTION TO INTERVENE ON BEHALF
OF THE CITY OF FAYETTEVILLE IN ARKANSAS PUBLIC SERVICE COMMISSION PROCEEDING 25-003-U
AND OPPOSE THE APPLICATION OF SOUTHWESTERN ELECTRIC POWER COMPANY TO INCREASE ITS
RATES
WHEREAS, on March 28, 2025, Southwestern Electric Power Company ("SWEPCO") filed an Application for
General Change in Rates and Tariffs with the Arkansas Public Service Commission; and
WHEREAS, SWEPCO's proposed rate change would result in an electricity cost increase to the City of Fayetteville
government, residents, businesses, and institutions of more than $15,000,000.00; and
WHEREAS, the City of Fayetteville is not adequately represented by any other party to SWEPCO's rate increase
proceeding as it is SWEPCO's largest municipal customer in the State of Arkansas and SWEPCO provides
approximately 72% of all electricity consumed in the City.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the City Attorney to file a
motion to intervene on behalf of the City of Fayetteville in Arkansas Public Service Commission proceeding 25-003-U
and oppose the application of Southwest Electric Power Company to increase its rates.
PASSED and APPROVED on May 20, 2025
Approved:
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Attest:
Molly Rawn, Mayor Kara Paxton, City Clerk Treasurer
Page 1
CITY OF CITY COUNCIL MEMO
FAYETTEVILLE
ARKANSAS 2025-711
MEETING OF MAY 20, 2025
TO: Mayor Rawn and City Council
THRU: City Clerk, City Clerk - Approvals Account - General
FROM: Peter Nierengarten, Environmental Director
SUBJECT: Southwestern Electric Power Company (SWEPCO) Rate Case Intervention
RECOMMENDATION:
Staff recommends petitioining the Arkansas Public Service Commission to intervene in docket: 25-003-U,
in the matter of the application of Southwestern Electric Power Company for approval of a general change
in rates and tariffs.
BACKGROUND:
Southwestern Electric Power Co. (SWEPCO) is one of two utilities providing electricity within the City of
Fayetteville. In 2023, SWEPCO provided approximately 767 million kWh of electricity to residents, businesses
and other institutions in Fayetteville, accounting for 72% of electricity consumed in the City.
On March 28, 2025, SWEPCO submitted a request to the Arkansas Public Service Commission to update its
rates and tariffs for electricity supplied within their Arkansas service territory. The company seeks rate recovery
of increased capital investment in generation, transmission, and distribution, including:
• New wind power generation facilities in Oklahoma and Texas
• Environmental compliance upgrades to the Flint Cleek and Welsh Coal Plants
• Perky Coal Plant retirement
• System improvement plans to increase electrical grid resiliency
If approved, a Fayetteville residential customer using 857 kilowatt-hours per month (SWEPCO's average
Arkansas residential usage) would see an overall bill increase of $30.46 per month, or about 27%. Commercial
and municipal customers would see an 20 - 40% rate increase.
SWEPCO's last increase in base rates occurred in 2022 in Docket No. 21-070-U. SWEPCO has also received
two Rider Formula Rate Review (FRR) adjustments effective in October 2023 and October 2024.
DISCUSSION:
The Arkansas Public Service Commission allows any person or entity whose interest may be directly affected
by Commission action to intervene as a party to any docket. A petition to intervene shall contain:
Mailing address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
• The nature of the petitioner's interest in the proceeding
• A demonstration that the petitioner's interests are not adequately represented by any other party
• The specific objection to the applicant's proposal
• Any other reasonable information
Other impacted entities who have submitted petitions to the Arkansas Public Service Commission to intervene
in this rate case include the University of Arkansas System, Walmart Inc. and the Sierra Club. The deadline to
submit a petition to intervene in this rate case is 4:30 pm on Tuesday, May 27th
BUDGET/STAFF IMPACT:
The proposed SWEPCO rate increase would have a direct budgetary impact of approximately $150,000 per
year for City of Fayetteville Government electricity costs and over $15M per year in additional electricity cost
for the residents, businesses and other institutions in Fayetteville.
ATTACHMENTS: Staff Review Form - SWEPCO Rate Case 2025 (#3), Arkansas Public Service Commission
webpage screenshot (#4)
Mailing address:
113 W. Mountain Street www.fayetteville-ar.gov
Fayetteville, AR 72701
== City of Fayetteville, Arkansas
Y 113 West Mountain Street
Fayetteville, AR 72701
(479)575-8323
- Legislation Text
File #: 2025-711
SWEPCO (RATE CASE INTERVENTION):
A RESOLUTION TO AUTHORIZE THE CITY ATTORNEY TO FILE A MOTION TO INTERVENE
ON BEHALF OF THE CITY OF FAYETTEVILLE IN ARKANSAS PUBLIC SERVICE
COMMISSION PROCEEDING 25-003-U AND OPPOSE THE APPLICATION OF
SOUTHWESTERN ELECTRIC POWER COMPANY TO INCREASE ITS RATES
WHEREAS, on March 28, 2025, Southwestern Electric Power Company ("SWEPCO") filed an
Application for General Change in Rates and Tariffs with the Arkansas Public Service Commission; and
WHEREAS, SWEPCO's proposed rate change would result in an electricity cost increase to the City of
Fayetteville government, residents, businesses, and institutions of more than $15,000,000.00; and
WHEREAS, the City of Fayetteville is not adequately represented by any other party to SWEPCO's
rate increase proceeding as it is SWEPCO's largest municipal customer in the State of Arkansas and
SWEPCO provides approximately 72% of all electricity consumed in the City.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby authorizes the City
Attorney to file a motion to intervene on behalf of the City of Fayetteville in Arkansas Public Service
Commission proceeding 25-003-U and oppose the application of Southwest Electric Power Company to
increase its rates.
Page 1
City of Fayetteville Staff Review Form
2025-711
Item ID
5/20/2025
City Council Meeting Date - Agenda Item Only
N/A for Non -Agenda Item
Peter Nierengarten 5/19/2025 SUSTAINABILITY/RESILIENCE (631)
Submitted By Submitted Date Division / Department
Action Recommendation:
Staff recommends petitioining the Arkansas Public Service Commission to intervene in docket: 25-003-U, in the
matter of the application of Southwestern Electric Power Company for approval of a general change in rates and
tariffs.
Account Number
Project Number
Budgeted Item? No
Does item have a direct cost? No
Is a Budget Adjustment attached? No
Budget Impact:
Total Amended Budget
Expenses (Actual+Encum)
Available Budget
Item Cost
Budget Adjustment
Remaining Budget
Fund
Project Title
V20221130
Purchase Order Number: Previous Ordinance or Resolution # 226-21
Change Order Number: Approval Date:
Original Contract Number:
Comments:
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Today is Monday, May 19, 2025
Docket 25-003-U - Share
Style: IN THE MATTER OF THE APPLICATION OF SOUTHWESTERN ELECTRIC POWER COMPANY FOR APPROVAL OF A GENERAL CHANGE IN RATES AND TARIFFS
Electronic True
Open: True
Service List View
Commission Staff: View
Document Numbers omitted from the following list of documents are assigned to Affidavits of Non disclosure. Click hereto view this Docket with Affidavits of Non -disclosure included.
Company Name
Southwestern Electric
APSC General Staff
Attorney General of At
Southwestern Electric
Walmart, Inc.
Sierra Club
University of Arkansas
Docket Role
Initiating Party
Party
Party
Party
Party
Pending Party
Pending Party
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