Texas Commission Approves SWEPCO Rates for Increase

             Texas Commission Approves SWEPCO Rates for Increase

PR Newswire

SHREVEPORT, La., Nov. 20, 2013

SHREVEPORT, La., Nov.20, 2013 /PRNewswire/ --The Public Utility Commission
of Texas (PUCT) has approved a base rate increase for Southwestern Electric
Power Company (SWEPCO), a unit of American Electric Power (NYSE: AEP).

In Texas, the bill for a residential customer using 1,000 kilowatt-hours (kWh)
will increase approximately $7.00 per month, or 8.9 percent. The PUCT approved
this increase in base rates to recover costs associated with two major power
plants and for vegetation management to maintain and ensure reliability.

The changes will begin with December 2013 customer bills, with the increase
retroactive to January 29, 2013, which is pursuant to an agreement between the
PUCT and SWEPCO in order to allow the Commission and other participating
parties more time to review the case. SWEPCO filed the rate increase request
in July 2012.

The difference between the amounts billed under the former rates and the new
approved rates from February 2013 through November 2013 will be billed to
customers through a surcharge implemented at the same time as new rates go
into effect. This additional 7.8 percent surcharge (about $6.00) will continue
for about 10 months through September 2014. 

SWEPCO completed construction of the 500-megawatt J. Lamar Stall Unit, a
natural gas-fueled combined-cycle power plant in Shreveport, La., in 2010.
Additionally, the 600-megawatt (SWEPCO owns 440 MW) John W. Turk, Jr. Power
Plant, a coal-fueled ultra-supercritical power plant in Hempstead County of
Southwest Arkansas, was completed in December 2012. These units are among the
first built by SWEPCO in more than 25 years. In 2013, the Turk Power Plant has
won several awards, including the Edison Award from Edison Electric Institute;
Plant of the Year from Power Magazine; and Project of the Year by Power
Engineering Magazine.

"Even with this rate increase, SWEPCO residential rates continue to be among
the lowest in Texas, and compare favorably to national averages," said Venita
McCellon-Allen, SWEPCO president and chief operating officer. Residential
rates will be approximately 33.6 percent below the national average and 13.7
percent below the state average for comparable investor-owned utilities.

The decision grants SWEPCO an annual increase of $39.4 million, including $5
million marked for vegetation management.

SWEPCO's original request, filed July 27, 2012, was $83 million for two new
power plants and tree trimming. The estimated impact of SWEPCO's original
request was $12 per month, or 16 percent, for a residential customer in Texas
using 1,000 kilowatt-hours per month.

Base rates refer to the costs of building, maintaining and operating SWEPCO's
electric system, including power plants, transmission and distribution lines,
and facilities to serve customers. Base rates do not include the fuel portion
of the customer's bill, which covers the costs of fuel and purchased power and
is a direct pass-through with no profit.

SWEPCO serves 524,000 customers, including 182,000 in Texas, 228,000 in
Louisiana and 114,000 in Arkansas. SWEPCO's headquarters are in Shreveport,
La. News releases and other information about SWEPCO can be found at

American Electric Power is one of the largest electric utilities in the United
States, delivering electricity to more than 5.3 million customers in 11
states. AEP ranks among the nation's largest generators of electricity, owning
nearly 38,000 megawatts of generating capacity in the U.S. AEP also owns the
nation's largest electricity transmission system, a 40,000-mile network that
includes more 765 kilovolt extra-high voltage transmission lines than all
other U.S. transmission systems combined. AEP's transmission system directly
or indirectly serves about 10 percent of the electricity demand in the Eastern
Interconnection, the interconnected transmission system that covers 38 eastern
and central U.S. states and eastern Canada, and approximately 11 percent of
the electricity demand in ERCOT, the transmission system that covers much of
Texas. AEP's utility units operate as AEP Ohio, AEP Texas, Appalachian Power
(in Virginia and West Virginia), AEP Appalachian Power (in Tennessee), Indiana
Michigan Power, Kentucky Power, Public Service Company of Oklahoma, and
Southwestern Electric Power Company (in Arkansas, Louisiana, and east and
north Texas). AEP's headquarters are in Columbus, Ohio. News releases and
other information about AEP can be found at www.aep.com.

This report made by AEP and its Registrant Subsidiaries contains
forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act of 1934. Although AEP and each of its Registrant Subsidiaries
believe that their expectations are based on reasonable assumptions, any such
statements may be influenced by factors that could cause actual outcomes and
results to be materially different from those projected. Among the factors
that could cause actual results to differ materially from those in the
forward-looking statements are: electric load and customer growth; weather
conditions, including storms; available sources and costs of, and
transportation for, fuels and the creditworthiness and performance of fuel
suppliers and transporters; availability of generating capacity and the
performance of AEP's generating plants; AEP's ability to recover regulatory
assets and stranded costs in connection with deregulation; AEP's ability to
recover increases in fuel and other energy costs through regulated or
competitive electric rates; AEP's ability to build or acquire generating
capacity (including AEP's ability to obtain any necessary regulatory approvals
and permits) when needed at acceptable prices and terms and to recover those
costs through applicable rate cases or competitive rates; new legislation,
litigation and government regulation including requirements for reduced
emissions of sulfur, nitrogen, mercury, carbon, soot or particulate matter and
other substances; new legislation, litigation and government regulation
including requirements for reduced emissions of sulfur, nitrogen, mercury,
carbon, soot or particulate matter and other substances; timing and resolution
of pending and future rate cases, negotiations and other regulatory decisions
(including rate or other recovery for new investments, transmission service
and environmental compliance); resolution of litigation (including pending
Clean Air Act enforcement actions and disputes arising from the bankruptcy of
Enron Corp. and related matters); AEP's ability to constrain operation and
maintenance costs; the economic climate and growth in AEP's service territory
and changes in market demand and demographic patterns; inflationary and
interest rate trends; AEP's ability to develop and execute a strategy based on
a view regarding prices of electricity, natural gas and other energy-related
commodities; changes in the creditworthiness of the counterparties with whom
AEP has contractual arrangements, including participants in the energy trading
market; actions of rating agencies, including changes in the ratings of debt;
volatility and changes in markets for electricity, natural gas and other
energy-related commodities; changes in utility regulation, including the
potential for new legislation in Ohio and membership in and integration into
regional transmission organizations; accounting pronouncements periodically
issued by accounting standard-setting bodies; the performance of AEP's pension
and other postretirement benefit plans; prices for power that AEP generates
and sells at wholesale; changes in technology, particularly with respect to
new, developing or alternative sources of generation; other risks and
unforeseen events, including wars, the effects of terrorism (including
increased security costs), embargoes and other catastrophic events.

SOURCE Southwestern Electric Power Company

Contact: MEDIA CONTACTS: SWEPCO Corporate Communications: Scott McCloud,
318-673-3532, or Kacee Kirschvink, 318-673-3394, or AEP Media Relations: Tammy
Ridout, 614-716-2347; ANALYSTS CONTACT: Julie Sherwood, Director, Investor
Relations, 614-716-2663
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