MEDIA ADVISORY
SRP begins 2009 pricing process
Five public open houses meetings scheduled in August across Valley
SRP on Monday will initiate a public pricing process that will help maintain a stable, reliable source of power and water during a challenging economy that has already seen SRP takes significant steps to cut its own costs while also offering customers new options to manage energy use and offset proposed price changes.
The pricing process will include a series of public open houses in August and two special SRP Board of Directors meetings on Sept. 10 and on Oct. 1. Any approved changes to SRP prices would be effective with the November 2009 billing cycle.
The management pricing proposal, which will help SRP continue to maintain and upgrade existing power plants and transmission lines, manage diverse fuel sources and meet strict environmental requirements, would increase electric prices 8.8 percent on average and would vary across all price plans, billing months and customer classes -- residential, commercial and industrial.
As proposed, a typical SRP residential customer on the Basic Price Plan using 1,208 kilowatt-hours per month could expect an average annual increase of about $12.22 per month. The proposed increase would be effective with the November 2009 billing cycle, which for most customers begins during October.
To limit the effect of the price change on its customers, SRP is offering a combination of energy-saving advice and rebates that help customers purchase more energy-efficient appliances at www.savewithsrp.com. The new website has details on how to install programmable thermostats to take advantage of SRP's industry-leading EZ-3™ and Time-of-Use™ pricing plans which are optional programs that help residential customers shift their usage to off-peak hours when the price is lower. Customers can also learn how to make the switch to energy-efficient CFL bulbs, reduce cooling costs by shading windows, perform a home energy audit.
In addition, qualified low-income customers in SRP's service territory may now receive up to $6,000 from SRP to improve the energy efficiency of their home. The $6,000 per-customer cap is an increase of $4,000 from last year's offering.
General Manager Richard Silverman said SRP this year has taken significant steps to slash costs by reducing its workforce, reducing its operating budget by over $40 million, decreasing capital expenditures by over $90 million -- which is expected to total more than $600 million over the next six years -- and deferring capital expenditures of $150 million.
"Increasing prices is a difficult decision, and a process SRP is undergoing only after months of careful consideration that included taking other steps first," he said. "But we remain committed to balancing competitive prices with exceptional customer service, reliability, stewardship and safety."
Silverman said a number of factors are contributing to the upward pressure on SRP's cost to provide electricity. These factors, he said, are offset by decreases in SRP's fuel and purchased power costs as well as management actions to reduce expenses. They include:
- Increasing investments in renewable generating resources, energy-efficiency programs and smart meters to meet targets established in SRP's Sustainable Portfolio Principles, and to prepare for a carbon-constrained future.
- Significant ongoing capital investments to preserve fuel diversity and to meet environmental requirements.
- Increased maintenance needs for SRP's existing generating, transmission and distribution assets to ensure reliable and responsive electric service.
- Additional investments in infrastructure to meet anticipated mid- to long-term customer growth.
- Maintaining SRP's financial strength to minimize and manage the long-term costs for present and future customers.
"We also must anticipate the challenges all utilities face as our country shifts to cleaner but more expensive ways to generate electricity," said Silverman. "We're working hard to develop solar, wind and other renewable-energy projects. At the same time, we're investing in a variety of energy-efficiency programs, and accelerating the switch to smart meters, helping create a new power grid that will make it easier for our customers to track and adjust how they use electricity."
The pricing process starts with the opening of the SRP Information Center, which will be open weekdays until Nov. 1 from 8:30 a.m. to 5 p.m. at SRP's main administrative offices, 1521 N. Project Drive, Tempe. Information pertinent to the price proposal will be made available for inspection during those hours. The complete price proposal also is available for viewing at www.srpnet.com/priceinfo.
Comments can be submitted and more information will also be available at the August informational meetings. The dates and locations of the public open houses are:
- Aug. 4, 2009
Residential and Small Business Customer Meeting
5:30 to 7:30 p.m.
Pinal Call Center
3735 E. Combs Road, Queen Creek
- Aug. 5, 2009
Residential and Small Business Customer Meeting
5:30 to 7:30 p.m.
Southeast Regional Library
775 N. Greenfield Road, Gilbert
- Aug. 11, 2009
Residential and Small Business Customer Meeting
5:30 to 7:30 p.m.
Supai Middle School
6720 E. Continental Drive, Scottsdale
- Aug. 13, 2009
Residential and Small Business Customer Meeting
5:30 to 7:30 p.m.
Glendale Administrative Center
7650 N. 43rd Ave., Glendale
- Aug. 18, 2009
Commercial Customer and Stakeholder Meeting
9:30 a.m. to 4 p.m. (or until adjourned)
SRP Project Administration Building
1521 N. Project Drive, Tempe
SRP is the largest provider of electricity to the greater Phoenix metropolitan area, serving about 935,000 customers in Maricopa and Pinal counties.
