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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.

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    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 with no mark up.

    Last year, the SRP Board of Directors approved a two-part Fuel and Purchased Power Adjustment Mechanism (FPPAM) rate increase to better reflect the price SRP pays for fuel and purchased power. The first part went into effect November 1, 2022. Even with these previously approved increases, the under-collected balance for fuel and purchased power would have continued to grow. This is due to the addition of new renewable and battery storage projects, including some that have become more expensive because of supply chain disruptions, as well as higher costs associated with procuring natural gas and long-term purchased power commitments needed to ensure reliability.

    • The SRP Board of Directors approved a further increase to the Fuel and Purchased Power Adjustment Mechanism (FPPAM) rate change already planned for November 1, 2023. This will result in a total overall increase of 9.6 percent, or $0.01 per kilowatt hour (kWh). Residential customers will experience an average increase of 8%, which will go into effect in November after the summer season.
    • This rate change will allow SRP to fully recover the under-collected fuel and purchase balance on a more timely basis. While customer impacts will depend on actual per-kWh usage, the average residential customer using 1,188 kWh/month will experience an increase of $11.88/month.

    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.