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.

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