SRP Board approves price increase
On March 11, the SRP Board of Directors concluded a public process by approving an overall 4.9% price increase effective with the May 2010 billing month, which for most customers begins during April.
The price increase is needed to pay for the new Springerville power plant in eastern Arizona, which began operating in December and serves Valley customers. It also will fund additional emission controls to meet stricter federal air-quality requirements at SRP's Coronado Generating Station near St. Johns.
As a result of the price change, the bill for a typical residential customer on the Basic Plan using 1,216 kilowatt-hours (kWh) increases by about $5.95 per month ($3.42 per winter billing month and $8.47 per summer billing month).
The impact of the increase will vary by price plan and usage. A letter outlining the money-saving options available to SRP customers and the estimated changes to electric bills will be mailed in May.
Added assistance for customers
To help low-income households, SRP is increasing the Economy Price Plan and Medical Life Support Rider discount from $15 to $17 per month. SRP also is making a $1 million donation to the Home Energy Assistance Fund. This amount is in addition to the matching contributions SRP already directs to the fund each year (up to $275,000) and will be used exclusively to assist SRP customers.
Other price changes
The following changes also were approved by the SRP Board:
- The Basic Plan Monthly Service Charge increases to $15 per month to match other residential price plans.
- For the Basic and Time-of-Use plans, the declining price block (where the price per kWh decreases in steps as usage increases) is eliminated during the six winter billing months. A third inclining price block (where the price per kWh increases in steps as usage increases) is added to the six summer billing months for the Basic Plan. Both of these changes are designed to encourage energy conservation.
- The SurePay discount changes from 1% of the bill to ½% effective with the May 2010 billing cycle. The discount is scheduled to end with the May 2011 billing cycle, but the program may be re-evaluated at a later date.
Switching plan may offset price changes
Many Basic Price Plan customers may offset the increase, or even reduce their bill, by switching to one of our Time-of-Day plans (SRP Time-of-Use™ or SRP EZ-3™). Check in the upper left corner of your bill (under name and address) for your current plan.
Time-of-Day plans offer lower prices during off-peak hours to encourage less energy use during on-peak hours, when the cost to produce electricity is highest. You can save (on average 4-7%) by limiting usage during the higher-priced times, but you must be enrolled in one of the plans and shift your energy use to realize the savings.
Risk-free guarantee
SRP is offering a 90-day "no risk" guarantee for customers who switch from Basic to either Time-of-Day plan from May 1 to Oct. 31, 2010. If your first three bills on the new price plan exceed in aggregate what you would have paid on the Basic Plan, call us within 30 days of receiving the third bill, and we will credit the difference to your account and convert you back to Basic at no charge.
To take advantage of this offer, please call (602) 236-8888.
