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 on Friday, April 29 for Texas customers according to a release.
SWEPCO says the surcharge will result in a charge on $5.96 for a residential customer using 1,000 kWh per month. The impact on commercial, industrial, municipal, and lighting rate classes will vary by rate, class and usage characteristics.
To help lessen the impact on customers, the winter fuel surcharge will be spread over five years, the release stated.
“We realize the timing of this surcharge is not ideal for our Texas customers,” said Malcolm Smoak, SWEPCO President and Chief Operating Officer. “The February 2021 winter storm was historic not only for our community but also for our electric 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 Texas fuel cost increased $176.2 million over the course of 12 days during 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 power.
By comparison, the Texas fuel costs for the entire year of 2020 amounted to $195 million, according to SWEPCO.