SRP board approves 3% cut in electricity rates for hottest months of 2026

PHOENIX — The Salt River Project Board of Directors on Thursday signed off on a plan to reduce electricity rates for Valley customers during the hottest part of 2026.

The elected SRP board approved a 3% rate cut that is projected to save residential customers $5.57 per month on average for the May through October billing cycles.

It will almost cancel out last year’s 3.5% rate hike over that six-month period.

The summertime rate cut is made possible by SRP’s Fuel and Purchased Power Adjustment Mechanism (FPPAM), which recovers the costs of fuel, purchased power agreements and market purchases.

Surplus in FPPAM makes SRP rate cut possible

SRP management regularly reviews the FPPAM balance to determine if rate adjustments are appropriate.

Management told the board the FPPAM has a surplus because of higher-than-projected retail sales and lower-than-forecast natural gas and market power costs.

SRP, which has about 1.1 million power customers in metro Phoenix, is a not-for-profit utility that does not have investors. It reinvests revenues in excess of expenses into its electric systems.

Related

10-to-1 spending gap in SRP election defines battle for Phoenix utility controlSRP considers plan to cut power rates by 3% for 6 months in 2026, including all summerAngie’s wants to recruit Salad and Go workers who lost their jobs after bankruptcy killed the chainGarage, Johnny Rockets opening this weekend at Chandler Fashion CenterTreasury Secretary Scott Bessent says Trump admin ‘laser-focused’ on Arizona semiconductorsFrom salads to coffee? Dutch Bros could take over closed Salad and Go spots