Fuel and Purchased Power Adjustment Mechanism FAQ
As a community-based not-for-profit utility, SRP sets prices based on the cost we pay to provide power.
Some of these costs, like the cost of fuel and wholesale electricity, fluctuate often. The Fuel and Purchased Power Adjustment Mechanism (FPPAM) helps SRP recover these costs in a timely manner.
Frequently asked questions
Part of every SRP customer's monthly bill goes toward FPPAM. SRP monitors fuel and wholesale electricity costs closely and, from time to time, we make FPPAM adjustments based on the market. We also make price adjustments so that, in the long run, customers pay the actual cost of fuel and purchased power.
In May 2019, SRP lowered FPPAM prices below cost to refund an over-collected balance. Once the refunding process was complete, prices needed to be adjusted to better align with fuel and wholesale electricity expenses.
SRP's Board approved a plan in February 2021 that:
- Adjusted the FPPAM under-collection balance by $82 million, a move designed to bring the FPPAM back to a zero balance by the start of SRP's fiscal year on May 1, 2021. This was made possible in part due to better-than-expected financial performance in the previous fiscal year and reduced the amount needed to be collected through FPPAM prices.
- Implemented an overall 3.9% average annual increase through the FPPAM starting with the November 2021 billing cycle. The impact of the increase will vary based on price plan and seasonal usage; this will result in an average $3.96 increase in the typical residential customer's monthly bill.
SRP recognizes the impact the COVID-19 pandemic has had on our communities. If you need help paying your bill, call us now at (602) 236-8888(602) 236-8888. Our customer care team is available 24 hours a day, seven days a week, and we have programs, partners and resource counselors ready to support you. Or, if you're a business customer, call (602) 236-8833(602) 236-8833 weekdays between 7 a.m. and 5 p.m.