NOTICE OF RATE DECREASE REQUEST
Southwestern Electric Power Company (SWEPCO or Company) publishes this notice that on April 5, 2018, it filed its Petition and Statement of Intent to Change Rates (the Petition) with the Public Utility Commission of Texas (PUC or the Commission) in Docket No. 48233, and with those municipal authorities in its Texas service territory that have original jurisdiction over SWEPCO's electric rates. This notice is being published in accordance with Section 36.103 of the Public Utility Regulatory Act and Commission Procedural Rule, 16 Tex. Admin. Code § 22.51(b).
SWEPCO has approximately 184,000 Texas retail customers. All such customers and all classes of customers will be affected by this change. SWEPCO is requesting to change its rates to reflect the impact of the change in federal income tax rates implemented by the Tax Cuts and Jobs Act of 2017, which was passed by Congress late last year. This new federal law reduces the corporate income tax rate from 35% to 21%, and SWEPCO estimates that application of the lower income tax rate will result in an annual approximate $18 million, or 4.9%, overall decrease in base rates for Texas retail customers. The impact of the rate change on various customer classes will vary from the overall impact described in this notice, as shown in the table below.
SWEPCO further proposes that upon a determination of the effective date of these new rates, the Commission approve the Company's proposal to calculate the reduction in its rates, had the lower income tax rate been in effect from January 1, 2018 through the effective date of the new rates, and to use that amount to offset SWEPCO's ongoing recoveries under its Temporary Rate Reconciliation Rider approved in Docket No. 46449.
SWEPCO has proposed that its requested rate change become effective 35 days after the filing of the Petition and Statement of Intent. The proposed effective date is subject to suspension and extension by actions that may be taken by the Commission and other regulatory authorities. SWEPCO may propose that the Commission and other regulatory authorities establish temporary rates during any suspension period. SWEPCO is proposing revisions to most tariffs and schedules. In addition, in order to facilitate future Transmission Cost Recovery Factor (TCRF) and Distribution Cost Recovery Factor (DCRF) filings pursuant to Commission Substantive Rules, 16 Tex. Admin. Code §§ 25.239 and 25.243, respectively, SWEPCO is requesting that the Commission establish baseline values utilizing the new 21% federal income tax rate that will be used to calculate SWEPCO's TCRF and DCRF in future dockets.
Persons with questions or who want more information on SWEPCO's Petition may contact SWEPCO at 428 Travis Street, Shreveport, Louisiana 71101, or call toll-free at (888) 216-3523 during normal business hours. A complete copy of the Petition and related fi lings is available for inspection at the address listed in the previous sentence.
Persons who wish to intervene in or comment upon these proceedings should notify the Commission as soon as possible, as an intervention deadline will be imposed. A request to intervene or for further information should be mailed to the Public Utility Commission of Texas, P.O. Box 13326, Austin, Texas 78711-3326. Further information may also be obtained by calling the Public Utility Commission at (512) 936-7120 or (888) 782-8477. Hearing- and speech-impaired individuals with text telephones (TTY) may contact the Commission at (512) 936-7136. A request for intervention or for further information should refer to Docket No. 48233. Unless otherwise ordered by the presiding officer, motions to intervene will be due 45 days from the date SWEPCO filed its Petition and Statement of Intent with the Commission. The 45th day after SWEPCO filed its application is May 20, 2018.