New SRP Pricing and Price Plan Changes Take Effect

Changes to SRP pricing and price plans that were approved earlier this year by the SRP Board of Directors will take effect with the November 2025 billing cycle. These changes support ongoing reliability, expand low-income bill assistance and provide super off-peak pricing that takes advantage of abundant low-cost utility scale solar.

SRP is a not-for-profit utility and does not have investors. Any revenues in excess of expenses are reinvested back into our electric system to help maintain price stability for customers.

Pricing Changes
SRP customers will experience an overall 2.4 percent price increase. This change reflects an increase of $169 million in base revenue to support upgrades to the electric system and meet the cost of customer programs, among other things. This will be offset by a decrease of $68.7 million in fuel and purchased power expenses, which are recovered through the Fuel and Purchased Power Adjustment Mechanism (FPPAM) rate.

The average residential customer using 1,117 kilowatt-hours (kWh) a month will see a monthly bill increase of 3.5 percent, or $5.61. Actual bill impacts will vary based on customer usage and price plan.

SRP will also implement tiered residential monthly service charges for non-solar and solar customers based on dwelling type to better recover the fixed costs of serving customers, which include customer service, billing, and connection to the grid. The average residential bill impact accounts for the change in the monthly service charge.

Commercial and Industrial (C&I) customers will experience an average bill increase of 1.3%. Actual bill impacts vary based on the amount of energy used and when it is used.

Even with these changes, SRP customers still pay among the lowest electricity prices in the southwestern U.S. and the lowest rates of any major utility in the state. 

Expanded Limited-Income Bill Assistance
SRP will increase the Income-Qualified Discount (formerly called the Economy Price Plan) for residential customers between 0-150% of the Federal Poverty Level (FPL) from $23 to $35 a month and expand program eligibility to customers at 151-200% of FPL, who will receive $10 a month.

SRP will also provide $5 million a year to support its bill assistance program, which is administered through Wildfire.

New Residential Price Plans
Residential solar and non-solar customers will be able to participate in two new residential price plans with super-off-peak daytime time-of-use hours that are half the cost of SRP’s basic price plan.

·         Conserve 6-9 p.m. and Save (E-28)

o   Super off-peak hours between 8 a.m. and 3 p.m. daily

o   On-peak hours between 6 and 9 p.m. on weekdays only (excluding 6 holidays)

·         Manage Demand 5-10 p.m. and Save (E-16)

o   Super off-peak hours between 8 a.m. and 3 p.m. daily

o   On-peak hours between 5 and 10 p.m. on weekdays only (excluding 6 holidays)

o   Includes average on-peak demand billing component

Current SRP customers may switch to one of the new TOU plans or stay on their current plan until it is discontinued no later than November 2029. 

SRP is also closing new participation in some current non-solar time-of-use price plans.

No Changes to Residential Solar Price Plans
Residential solar price plans (E-13, E-14, E-15, and E-27) will remain open until the November 2029 billing cycle. By keeping these plans available for new customers, solar installers will have time to transition to the new TOU price plans and an evolving grid that includes significantly more renewable generation.

Commercial and Industrial Price Plan Changes
Time-of-Use (TOU) hours for Commercial and Industrial price plans will be updated to include super off-peak hours between 8 a.m. and 3 p.m. daily, on-peak hours between 5 p.m. and 10 p.m. on weekdays only (daily May 1- October 31 for Industrial price plans) and shoulder-peak at all other hours. The average estimated C&I customer bill impact does not assume any response to the new TOU hours. 

SRP communicated directly with its customers via email and mail to share information on the upcoming changes. Residential customers with questions can visit srp.net/resprices to learn more. SRP’s customer representatives are available 24/7 at 602-236-8888 to answer questions and help customers determine the best price plan for their needs. Commercial customers can visit srp.net/bizprices for additional information on the pricing changes.

The FPPAM rate recovers the costs of fuel, including natural gas; purchased power agreements, including those for solar, wind and storage; and market purchases used to help maintain energy reliability. These costs are passed through to customers without any overhead.

SRP offers a variety of energy efficiency rebates and resources to help customers manage their energy use and save money on their bills. Information on bill assistance programs can be found at srp.net/heretohelp.