MEDIA ADVISORY
SRP Board approves two price actions
Decisions result in no increase to customer electricity bills
Following its decision to postpone an increase to base prices, the Salt River Project Board of Directors today approved a decrease of 2.5 percent to the Fuel and Purchased Power Adjustment Mechanism (FPPAM) to reflect lower anticipated fuel and purchased-power costs over the next six months.
Combined with the Board's decision to approve a 2.5 percent increase to the Environmental Program Cost Adjustment Factor (EPCAF), SRP customers will experience no net impact to their electric bills when the changes take effect with the November billing cycle.
The FPPAM is a straight pass-through of actual fuel and purchased-power costs to SRP customers while the EPCAF funds increasing investments in renewable-generating resources, energy-efficiency programs and smart meters.
On Sept. 1, the Board acted to delay an increase in the base-price portion of management's original price proposal until at least May 1, 2010, as a result of public input.
Base prices include the costs related to producing and delivering electricity - excluding fuel, new capital infrastructure and the maintenance of SRP's aging generation, transmission and distribution systems.
Board members have also asked SRP management to continue to seek ways to cut costs and reduce expenses to help defray the size of any potential future base-price increases.
SRP is the largest provider of electricity to the greater Phoenix metropolitan area, serving more than 930,000 customers in Maricopa and Pinal counties.
