SRP considers plan to cut power rates by 3% for 6 months in 2026, including all summer
SRP, the Valley’s largest power provider, is considering a plan to cut rates by 3% throughout the summer of 2026.
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PHOENIX – The Valley’s largest power provider is considering a plan to cut rates by 3% throughout the summer of 2026.
Salt River Project (SRP) said Tuesday the proposal would reduce residential customers’ electric bills by $5.57 per month on average for the May through October billing cycles. The actual impact would vary depending on usage and price plans.
It would almost cancel out last year’s 3.5% rate hike for those six months.
The utility company’s Board of Directors is expected to vote on the plan, which was proposed by management, at a March 26 meeting if its Finance and Budget Committee signs off on it.
Why does SRP want to cut rates temporarily?
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.
The proposed summer rate cut is based on a projected Fuel and Purchased Power Adjustment Mechanism (FPPAM) surplus of $56 million.
The FPPAM recovers the costs of fuel, purchased power agreements and market purchases.
SRP is attributing the surplus to higher-than-projected retail sales and lower than forecast natural gas and market power costs.
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Comments
10 Comments
APS sucks.
What the story alludes to but doesn't actually mention is that, contrary to SRP, APS is for-profit with lots of shareholders to keep happy. So they're going to raise and raise as long as the dolts on the Corporation Commission allow them.
APS claimed we would see an increase avg of 30 per month. They failed to mention most of the rates will be seen in summer. Most of us seen 100-300 per month depending on the usage. It’s a joke.