Arkansas PublicPM: Service Commission APSC FILED Time: 3/18/2014 1:40:21 Recvd 3/18/2014 1:25:46 PM: Docket 14-022-TF-Doc. 1 Tariff ("TF") Docket Summary Cover Sheet Must be filed with each new TF docket filed at the Commission STYLE OF DOCKET: (Style may be changed by Secretary of Commission) In the Matter of the Appliction of Southwestern Electric Power Company for Approval of Revisions to the Energy Cost Recovery Rider to Address the Impact of the Southwest Power Pool Integrated Marketplace DOCKET DESIGNATOR: TF LAST RATE CASE DOCKET: Docket Number: 14-022-TF Docket No. 09-008-U Does this change company name: Yes No RELATED DOCKETS: PETITIONER: Southwestern Electric Power Company 428 Travis Street Shreveport, LA 71101 ATTORNEY(S;)NAME, ADDRESS,PHONE,FAX AND E-MAIL Stephen K. Cuffman (75026) Matthew B. Finch (01025) Gill Ragon Owen, P.A. 425 W. Capitol Avenue Suite 3801 Little Rock, AR 72201 (501) 376-3800 cuffman@gill-law.com Write a brief statement, limited to the space provided herein describing the case that you are filing. Please provide enough information to assure that the nature of your docket is clear. In this application SWEPCO is seeking approval of revisions to the Energy Cost Recovery Rider to Address the Impact of the Southwest Power Pool Integrated Marketplace. Pursuant to Rule 2.03(b), of the Commission's Rules of Practice and Procedure, please provide name, address, phone, fax, e-mail of at least one person, but not more than two, to appear on the Service List for this docket Stephen K. Cuffman Elizabeth Stephens Gill Ragon Owen, P.A. Principal Regulatory Consultant 425 W. Capitol Avenue Southwestern Electric Power Company Little Rock, AR 72201 428 Travis St (501) 376-3800 Shreveport, LA 71101 cuffman@gill-law.com (318) 676-3626 edstephens@aep.com 1. Number of customers by class affected by this tariff change: 115,233 2. Company's current authorized retail revenue requirement: $133,884,119 3. Estimated annual retail revenue impact if proposal is approved, both in dollars and as a percentage of current retail revenue requirement: No expected impact on base rev. req. 4. Estimated monthly impact on an average residential customer in both dollars and percentage increase: -$1.65 ; -1.79 % 5. Proposed effective date: Upon approval of the Commission APSC Time: 3/18/2014 1:40:21 Recvd 3/18/2014 1:25:46 PM: Docket 14-022-TF-Doc. 1 Form completed by: FILED Stephen K. Cuffman Date: PM: 03/018/2014 Representing: SWEPCO APSC FILED Time: 3/18/2014 1:40:21 PM: Recvd 3/18/2014 1:25:46 PM: Docket 14-022-TF-Doc. 1 BEFORE THE ARKANSAS PUBLIC SERVICE COMMISSION IN THE MATTER OF THE APPLICATION OF SOUTHWESTERN ELECTRIC POWER COMPANY FOR APPROVAL OF REVISIONS TO ITS ENERGY COST RECOVERY RIDER TO ADDRESS THE IMPACT OF THE SOUTHWEST POWER POOL INTEGRATED MARKETPLACE ) ) ) ) ) ) ) DOCKET NO. 14-022-TF APPLICATION Southwestern Electric Power Company (“SWEPCO” or the “Company”) files this application with the Arkansas Public Service Commission (“Commission”) to seek approval of revisions to its Energy Cost Recovery Rider (“Rider ECR”) that are necessary as a result of the implementation of Southwest Power Pool’s Integrated Marketplace (“SPP IM”), and in support thereof states: 1. SWEPCO is a corporation organized and existing under the laws of the State of Delaware, and is duly authorized to do business in the States of Arkansas, Texas, Louisiana and Oklahoma. SWEPCO's principal office is at 428 Travis Street, Shreveport, Louisiana. 2. In the States of Arkansas, Louisiana and Texas, SWEPCO engages in a general electric utility business of selling, at retail and wholesale, electric power and energy to customers in its service areas. SWEPCO provides service to approximately 526,000 retail customers, of which approximately 115,000 are located in Arkansas. Electricity is provided by 11 generating facilities which the Company owns in whole or in part, and pursuant to purchased power agreements, and is delivered to customers in the Company’s service areas via an integrated transmission and distribution system. 1 APSC FILED Time: 3/18/2014 1:40:21 PM: Recvd 3/18/2014 1:25:46 PM: Docket 14-022-TF-Doc. 1 3. SWEPCO is a public utility as defined by Ark. Code Ann. § 23-1-101 et seq., and is therefore subject to the jurisdiction of the Commission. This petition is filed pursuant to Ark. Code Ann. § 23-4-108, and Sections 3 and 4 of the Commission’s Rules of Practice and Procedure. Pursuant to Rule 3.04, all correspondence and other papers regarding this docket should be addressed to: Elizabeth Stephens Principal Regulatory Consultant Southwestern Electric Power Company P.O. Box 21106 Shreveport, LA 711056 (318) 673-3626 edstephens@aep.com and Stephen K. Cuffman Gill Ragon Owen. P.A. 425 W. Capitol Avenue Suite 3801 Little Rock, Arkansas 72201 (501) 376-3800 cuffman@gill-law.com 4. SWEPCO’s Rider ECR, permits the Company to recover its jurisdictional allocation of average system fuel costs through an Energy Cost Rate applied to each customer’s monthly kWh usage. On or before March 15 of each year, SWEPCO files a redetermined Energy Cost Rate in accordance with the Energy Cost Rate Formula set forth in Attachment A of Rider ECR. 5. In Order No. 1, Docket No. 13-034-TF, the Commission approved revisions to Rider ECR to exclude the fuel costs of the John W. Turk, Jr. generating plant (the “Turk Plant”) from the average system fuel costs allocated to Arkansas, and substitute replacement energy costs from other SWEPCO generating units that serve the Arkansas load. In Order No. 2 APSC FILED Time: 3/18/2014 1:40:21 PM: Recvd 3/18/2014 1:25:46 PM: Docket 14-022-TF-Doc. 1 1, the Commission noted that future Rider ECR revisions to calculate the Turk Plant adjustment will be required upon implementation of the SPP IM. 6. The SPP IM commenced operation on March 1, 2014. In this filing, SWEPCO proposes to incorporate the impact of participation in the SPP IM on the Turk Plant adjustment that is necessary to remove the monthly fuel cost associated with the Turk Plant, as well as associated revenues from sales from the Turk Plant including sales made into the SPP IM. The methodology employed by SWEPCO to develop the revised Turk Plant adjustment is discussed in detail in the testimony of A. Naim Hakimi, Director, Power Cost Recovery for American Electric Power Service Corporation. 7. In addition, this application will address the need to eliminate a separate Rider ECR adjustment related to serving the former Valley Electric Membership Corporation (“VEMCO”) load. As discussed by Mr. Hakimi, the former VEMCO load served by SWEPCO will be included in the Company’s Louisiana load in the SPP IM and will be allocated its share of load related charges from the SPP IM. With the inclusion of the VEMCO load served by SWEPCO in the energy cost allocation factors for Louisiana, an adjustment for Arkansas will no longer be necessary. 8. On March 5, 2014 SWEPCO filed a motion for an extension of the March 15, 2014 deadline to file a redetermined Energy Cost Rate in order that the revisions to the Turk Plant adjustment and elimination of the VEMCO adjustment proposed herein could be incorporated into the annual update of Rider ECR. The Commission granted SWEPCO’s request in Order No. 22 filed March 11, 2014 in Docket No. 09-008-U. The deadline for that filing is now 15 days after the Commission’s order in this docket. SWEPCO therefore respectfully requests expedited approval of the revisions to the Turk Plant adjustment and 3 APSC FILED Time: 3/18/2014 1:40:21 PM: Recvd 3/18/2014 1:25:46 PM: Docket 14-022-TF-Doc. 1 elimination of the VEMCO adjustment described herein, and in the testimony of Mr. Hakimi, so that SWEPCO’s updated Rider ECR can be implemented with the first billing cycle of May, 2014. WHEREFORE, Southwestern Electric Power Company respectfully requests that the Commission issue an order approving the revisions to the Turk Plant adjustment to Rider ECR described herein on an expedited basis, and for all other proper relief. /s/ Stephen K. Cuffman________ Stephen K. Cuffman (75076) Matthew B. Finch (200125) Gill Ragon Owen. P.A. 425 W. Capitol Avenue Suite 3801 Little Rock, Arkansas 72201 (501) 376-3800 cuffman@gill-law.com 4