Protecting Ratepayers, Powering Growth: AAEA’s Role in SWEPCO’s Rate Case
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.
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.
Next Steps
SWEPCO RATE CASE PUBLIC EVIDENTIARY HEARING
Little Rock - Wednesday, November 19, 2025
9:30 a.m., APSC Building, 1000 Center Street
SWEPCO PUBLIC COMMENTS HEARINGS
Texarkana - Tuesday, December 2, 2025
Fayetteville - Thursday, December 4, 2025
SWEPCO services the following counties in Arkansas: Benton, Carroll, Hempstead, Howard, Little River, Logan, Miller, Nevada, Pike, Polk, Scott, Sebastian, Sevier, and Washington.
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 hereby granted intervention for the purpose of representing itself as an Arkansas advocacy group interested in the expansion of renewable energy generation and other advanced energy technologies
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
