FOR IMMEDIATE RELEASE
SRP Board OKs $40 Million Price Decrease
Temporary Measure will Reduce Prices by an Average 1.6 % for next 10 Months
For the second time in less than a year, SRP’s Board of Directors has approved a decrease in electricity prices for its more than 1 million customers. The 10–month temporary decrease, effective with the January 2017 billing cycle, averages an overall 1.6 percent.
The decrease will save the typical residential customer just under a dollar per month during the winter billing months and around $2.50 to $3.50 per month when the summer billing season begins in May. Prices will return to original winter season prices approved in 2015 with the November 2017 billing cycle.
“Utility customers are generally more used to seeing price increases than decreases, so we are very happy to be able to lower our prices,” said SRP General Manager and Chief Executive Officer Mark Bonsall. “At SRP, our team works hard to identify market opportunities and cut costs where possible to keep our prices low, and this temporary decrease is reflective of our success in these areas.”
The temporary decrease is possible because SRP has been able to reduce expenses in two components of its electric prices.
One of the price components – the Environmental Programs Cost Adjustment Factor, or EPCAF – tracks costs and revenues related to SRP’s renewable energy and energy-efficiency programs adopted to comply with SRP’s sustainable portfolio standard. The temporary reduction reflects SRP’s ability to meet its sustainable goals at a lower cost to customers.
SRP’s Board has set a goal to meet 20 percent of SRP’s retail electricity requirements through sustainable resources by the year 2020. Currently, SRP is ahead of schedule –providing more than 14 percent of retail energy needs with sustainable resources, which include solar, wind and geothermal energy, hydro power and energy-efficiency programs. SRP currently has 746 megawatts of renewable energy owned or under contract in its system.
The second component – the Fuel and Purchased Power Adjustment Mechanism, or FPPAM – recovers fuel costs incurred to generate electricity as well as power purchases to serve customer needs. Savings in this area are primarily because of lower-than-anticipated natural gas costs.
The costs of these two components to SRP are directly passed through to customers without any markup. SRP previously instituted a temporary reduction of 3.7 percent in the EPCAF and FPPAM for the 2016 July and August billing cycles.
The latest temporary reduction will decrease EPCAF and FPPAM revenue collection by about $40 million.
SRP is a community–based, not–for–profit public power utility and the largest provider of electricity in the greater Phoenix metropolitan area, serving more than 1 million customers. SRP also is the metropolitan area’s largest supplier of water, delivering about 800,000 acre–feet annually to municipal, urban and agricultural water users.