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Commission approves SWEPCO interim vegetation funding after audit questions; one commissioner dissents
Summary
The Public Service Commission voted to allow an interim $18 million funding request by SWEPCO for an aggressive vegetation management program, despite staff audit findings of inconsistent historical reporting; vote passed with one commissioner dissenting and bonding/reporting conditions attached.
The commission voted to grant SWEPCO interim relief to raise about $18 million for an accelerated vegetation management program intended to reduce power outages and improve reliability in the utility’s service territory.
SWEPCO representatives said the program targets tree‑related outages and will fund expanded trimming, pole replacement and related resilience work; the company said timing was important to begin work before the storm season. Staff acknowledged a pending in‑depth investigative report that found inconsistencies in how SWEPCO historically reported safety and reliability metrics (SAD/SAT) and said recalculations show prior compliance thresholds were missed. Staff recommended exercising Rule 57 jurisdiction and imposing conditions on any interim approval.
Commissioners pressed SWEPCO executives on specific accounting and reporting issues, including whether dollars recorded to vegetation work had been spent as reported and how storm work affects bookkeeping. SWEPCO said it had provided additional documentation and would work with staff to reconcile the records; the company also outlined operational fixes and a multi‑year plan to improve reliability.
Vote and conditions: After debate, the commission approved the interim funding under Rule 57, subject to proof of bonding and detailed reporting to staff before interim charges take effect. The approval included the requirement that SWEPCO file proof of applicable bond requirements and an updated tariff and that it not begin charging interim rates until staff approved those filings. The motion passed on a roll‑call vote; one commissioner recorded a dissent, citing concerns about incomplete staff review and the need for more time to address audit findings.
Why it matters: Vegetation management is a high‑cost, ongoing reliability issue for distribution utilities; the interim funding aims to reduce outage frequency and duration but raised questions about oversight, prior program accounting and how best to balance speed with auditable accountability.
