SRP Board Approves Delay of Price Increase for Fuel and Purchased Power Until November
In an effort to adjust to the fluctuating costs of fuel and purchased power agreements and keep customer prices low during this unprecedented time, the Salt River Project board voted today to delay a necessary price increase until November.
SRP routinely monitors the costs it incurs to purchase fuel for its generating stations and to buy supplemental power on the wholesale and spot markets to meet customer demand. Because these costs fluctuate frequently, the Fuel and Purchase Power Adjustment Mechanism (FPPAM ) was established to ensure that SRP recovers these costs on a timelier basis than other price changes and has some flexibility to adjust the FPPAM up or down when fuel and spot power prices rise or fall.
In May 2019, customer prices were lowered below cost in order to refund an over-collected balance. The prices now need to be rebalanced since the refunding process is complete.
Despite the need to rebalance FPPAM prices and in consideration of customers, the pandemic and overall economic environment, the Board voted to reduce the under-collected balance of the FPPAM to zero through a contribution of $82 million and to delay implementation of the adjustment to the FPPAM until after this summer.
Effective with the November 2021 billing cycle, an overall 3.9% average annual increase would be implemented through the FPPAM. Impacts will vary based on price plan and seasonal usage. This will result in an average $3.96 increase to the typical residential customer’s monthly bill.
SRP customers pay among the lowest power prices in the western United States. SRP hasn’t increased overall price levels since 2015 and has consistently lowered them since, both through the overall price reduction approved in 2019 and through other temporary and permanent reductions to the FPPAM.
SRP recognizes the impact the COVID-19 pandemic has had on our community, and customer outreach and support efforts have been accelerated to ensure customers know what support is available to them if they are struggling to pay their utility bill.
SRP has donated more than $1.35 million to assist residential customers, small businesses, nonprofits and health care organizations struggling financially in these times.
If customers need help paying their bills, they should call SRP now at (602) 236-8888. Our customer service team is available 24 hours a day. SRP has programs, partners and resource counselors ready to support customers in need of assistance.
SRP is a community-based, not-for-profit public power utility and the largest provider of electricity in the greater Phoenix metropolitan area, serving more than 1 million customers. SRP is also the metropolitan area’s largest supplier of water, delivering about 800,000 acre-feet annually to municipal, urban and agricultural water users.