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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.

    In recent months, fuel expenses have increased faster than SRP had adjusted, and there is increasing need for an adjustment to SRP’s FFPAM. These cost increases are caused by summer purchases, natural gas prices, fuel and purchased power. Many western United States utilities have also had to pay substantial premiums to secure power resource capacity for the peak-demand summer months given the capacity shortage in the region.

    SRP's Board approved a plan that:

    • Implemented an overall 4.7% average annual increase through the FPPAM starting with the November 2022 billing cycle. The impact of the increase will vary based on price plan and seasonal usage; this will result in an average $5.58 increase in the typical residential customer's monthly bill. The board has also approved a subsequent adjustment for the same amount effective one year later in November 2023.
    • Forgoes collection of $124M of under-collection balance. That represents $124M that we will no longer collect from customers in future prices and will benefit every customer who uses our service.

    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.