SRP approves electricity rate hike, adding $5.61 to average residential bill

PHOENIX – Salt River Project customers in metro Phoenix should brace for higher electric bills later this year after the utility approved a new pricing plan on Thursday.

The plan will bump bills up by 3.5%, or $5.61 per month, for the average residential customer starting with the November cycle, SRP said.

The actual impact on SRP customers will vary from household to household depending on usage and other factors.

It was the first change to base plans approved by the SRP Board of Directors since 2019, although other fee changes have increased bills in recent years.

SRP customers will see a variety of pricing changes

The new pricing structure includes an array of changes, and not all of them will result in higher bills.

In fact, over 90% of the customers on the Economy Price Plan, which is available to qualifying low-income households, will end up with lower bills because their monthly credit will increase.

Another change is that two new time-of-day price plans featuring “super off-peak” usage rates will be introduced. Customers will be able to switch to a new plan in November or stay on their current plan through November 2029.

Why is Salt River Project changing its pricing structure?

The new pricing reflects a proposed increase of $169 million in base revenue to cover the costs of electric system upgrades and customer programs.

“The approved proposal will allow SRP to continue to deliver affordable and reliable power and work toward achieving its sustainability goals in the most cost-effective manner while providing additional financial support for limited income customers,” Jim Pratt, SRP general manager and CEO, said in a press release.

The plan was the result of a three-month process that included public input.

“The approved proposal reflects many elements of this feedback,” said David Rousseau, SRP president.

SRP, a not-for-profit utility without investors, reinvests any revenues in excess of expenses into its electric system. It is the Valley’s largest electricity provider with about 1.1 million customers.

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