Dateline: June 12, 2003

Electric utility seeks fuel factor increase 

AUSTIN — Mutual Energy-SWEPCO (ME-SWEPCO) has filed a request with the Public Utility Commission of Texas (PUCT) to increase the fuel factors for electricity customers in Donley County as well as portions of Childress, Collingsworth, Hall and Wheeler counties. 

The request was filed because the existing fuel factors do not reflect the market price of natural gas used to generate electricity.

ME-SWEPCO began serving the approximately 7,100 customers when retail electric competition began in January 2002 for most of Texas.  This is the first time that ME-SWEPCO has requested permission to increase the fuel factors although electricity customers in neighboring areas have seen two increases in their fuel factors over the last 12 months.

If approved as requested, the increase would go into effect by the end of June.  Residential customers using 1,000 kilowatt-hours electricity a month would see their average monthly bill increase from approximately $92 to $111.80 if the factor increase is approved as requested.

By comparison, WTU Retail Energy customers who use the same amount of electricity in neighboring areas currently pay a monthly average of $112.80.

ME-SWEPCO is a subsidiary of American Electric Power.  American Electric Power owns and operates more than 42,000 megawatts of generating capacity in the United States and select international markets and is the largest electricity generator in the U.S. 

AEP is also one of the largest electric utilities in the United States, with almost 5 million customers linked to AEP’s 11-state electricity transmission and distribution grid.  The company is based in Columbus, Ohio.