SWEPCO announces surcharge to cover 2021 winter storm costs

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SHREVPORT, La. (KETK) – Southwestern Electric Power Co. announced Thursday that the company is implementing a fuel surcharge to recover costs associated with the February 2021 winter storm. The surcharge goes into effect Friday, April 29 for Texas customers according to a statement.

SWEPCO says the surcharge will incur a charge of $5.96 for a residential customer using 1,000 kWh per month. The impact on commercial, industrial, municipal and lighting rate categories will vary by rate, category and usage characteristics.

To help mitigate the impact on customers, the winter fuel surcharge will be spread over five years, the statement said.

“We realize the timing of this surcharge is not ideal for our Texas customers,” said Malcolm Smoak, SWEPCO president and chief operating officer. “The winter storm of February 2021 was historic not only for our community, but also for our power grid. This surcharge will help us recover the extraordinary costs incurred to provide electricity to Texas customers during the February 2021 winter storm.”

According to SWEPCO, their fuel cost in Texas increased by $176.2 million over the 12 days of the storm. The company says the costs were attributed to significantly higher fuel prices, regional grid requirements to run all generating units and higher costs for purchased electricity.

By comparison, fuel costs in Texas for the whole of 2020 were $195 million, according to SWEPCO.

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