Powering Growth: AAEA’s Role in SWEPCO’s Rate Case
December 5, 2025, Update
SWEPCO hosted two public comment hearings this week: December 2 in Ashdown, Arkansas, and December 4 in Springdale, Arkansas. The one held in northwest Arkansas attracted a rally with more than 25 sharing comments in opposition of the rate increase, according to Northwest Arkansas Democrat-Gazette:
“Many spoke passionately about what they said were the dangerous effects of coal emissions not only on the overall environment, but on the health and well-being of the people living in Northwest Arkansas.
“Other comments were geared toward what speakers argued are already hiked up prices of the cost of living and basic necessities. Much like was said during the rally, speakers argued it's unsustainable for most people in Arkansas to pay an increase of this magnitude alongside those other high prices for goods and services.”
November 20, 2025 Update
On Wednesday, November 19, 2025, the Arkansas Public Service Commission hosted the public evidentiary hearing for the SWEPCO rate case.
November 12, 2025 Update
Since AAEA was granted intervenor status in June 2025, the following steps in the rate case process have occurred:
August 22: intervenor testimonies filed
September 19: SWEPCO files rebuttal testimonies
October 17: intervenor surrebuttal testimonies filed
October 24: SWEPCO sur-surrebuttal testimonies filed
November 7: Settlement Agreement or Joint Issues List
November 12: Testimony in Support/Opposition of Settlement
The filings show that SWEPCO, regulators, consumer advocates, and key Arkansas stakeholders—including AAEA and the University of Arkansas—have jointly resolved the core financial and policy disputes in the 2025 rate case.
The agreement:
Narrows the scope of the upcoming hearing to only two environmental issues (Flint Creek and load pocket);
Proposes a moderate ROE (9.65%) and total revenue increase of about $85 million;
Commits SWEPCO to efforts in procuring a meaningful clean energy solution in NWA and accepting competitive generation proposals, and
Clarifies that customers, meters, or accounts with behind-the-meter-generation that do not receive compensation for excess generation are not subject to the laws and regulations governing net metering.
Though the parties reached an agreement, APSC will still need to review, approve and work through the next steps in the process.
July 1, 2025 Update
The Arkansas Advanced Energy Association (AAEA) has been granted intervenor status in Southwestern Electric Power Company’s (SWEPCO) general rate case (Docket No. 25-003-U). SWEPCO argued that AAEA shouldn’t be allowed to participate because some of our member companies had intervened individually—but the Arkansas Public Service Commission (APSC) disagreed. Recognizing AAEA’s unique role as a statewide advocate for energy policy and economic growth, the Commission approved our petition. AAEA will now review the filing and submit testimony to ensure our industry’s perspective is represented in this critical proceeding.
On March 28, 2025, SWEPCO filed with the APSC an application for a general change or modification of rates, charges, and tariffs of its company with Arkansas customers. The total amount of the requested rate increase is $113.6 million. A chart of the proposed monthly increases for residential and commercial customers can be found here.
The application follows the Arkansas legislature’s passing of Senate Bill 307, now Act 373, which allows utilities to fund new construction projects by passing costs to Arkansas ratepayers. The new projects are presumably to bridge critical capacity gaps between Arkansas’s energy supply and demand - Arkansas currently consumes about 50% more energy than it produces. While the gap is expected to be noticeable as early as 2026, utilities in Arkansas have been elusive with responsible solutions. Environmental groups have also voiced concerns, primarily over SWEPCO’s proposals to extend the life of existing coal plants and lean into natural gas to solve the issue.
Rate Case Timeline:
March 28: Southwestern Electric Power Company submits its REDACTED Application for approval of a change in rates and tariffs. Testimonies and exhibits submitted on behalf of SWEPCO.
April – May: parties submit petitions to intervene; granted.
June 16: AAEA is granted intervention status
August 22: intervenor testimonies filed
September 19: SWEPCO files rebuttal testimonies
October 17: intervenor surrebuttal testimonies filed
October 24: SWEPCO sur-surrebuttal testimonies filed
November 7: Settlement Agreement or Joint Issues List
November 12: Testimony in Support/Opposition of Settlement
November 19: Public Evidentiary Hearing – Little Rock
December 2: Public Comment Hearing - Texarkana
December 4: Public Comment Hearing - Fayetteville
