Public pricing process
Public pricing process
SRP has opened a public pricing process to consider a proposed overall average annual price decrease of 2.2%. Stay informed and involved.
Overview of proposed changes
SRP opened a public pricing process on Dec. 20. If approved by the publicly elected SRP Board, the proposed changes will appear on bills beginning in May 2019. Highlights of the proposal include:
- An overall average annual price decrease of 2.2%
This is the result of a reduction in fuel expenses and a modest increase in base prices. The proposal incorporates and adds to the decreases that SRP initially implemented on a temporary basis during Fiscal Year 2019. Individual impacts will vary by price plan and usage.
- New time-of-use on-peak hours
Summer on-peak hours would shorten by one hour, changing from 1–8 p.m. to 2–8 p.m., providing customers on the TOU, Customer Generation, Residential Demand and Electric Vehicle price plans with an additional hour of lower-cost power.
- New price plans for those who generate some of their own electricity
SRP is proposing three new price plans for residential customers who produce their own energy with rooftop solar and other technologies. Two of these options have no demand charge associated with them.
- Increased contributions to the Bill Assistance program
SRP contributions to the Bill Assistance program for limited-income customers would increase to $500,000 for the next five years. SRP currently matches customer donations up to $275,000 annually.
- A change in EZ-3 hours
The 2–5 p.m. EZ-3 experimental program would be frozen from new participation, then, in two years, eliminated. The 3–6 p.m. and 4–7 p.m. options would remain.
- Environmental programs continue, but costs rolled into other billing components
Renewable energy and energy efficiency are part of SRP's core business. As such, the Environmental Programs Cost Adjustment Factor (EPCAF) is no longer needed as a separate price plan component. Costs of renewable energy and energy efficiency will instead be captured through base prices and the Fuel and Purchased Power Adjustment Mechanism (FPPAM). Additional information about this proposed change is available.
Why are the changes needed?
- To account for lower fuel costs
SRP has been able to keep prices stable for the last four years. Prudent resource management, strategic resource acquisitions and favorable market conditions have allowed SRP to generate a greater share of energy using lower-cost natural gas.
- To keep up with economic growth and maintain reliability
Arizona’s growing economy and customer demand for electricity have created the need for ongoing investment in new resources and upgrades to aging infrastructure. The costs of those investments and upgrades are reflected in the modest increase to base prices.
- To reflect the transition to sustainable resources and new technologies
Renewable resources, such as solar, are an integral part of SRP’s resource plans and as such will reduce our dependence on carbon-intensive resources. This proposal takes into account the need to maintain flexibility as we increasingly integrate these resources and pursue emerging technologies such as batteries and smart devices. The costs of those efforts are also reflected in the proposed base price increase.
SRP is a community-based, nonprofit utility. We make decisions in the best interest of our customers, the environment and the communities we serve. We do not have shareholders or pay dividends. Revenues received through the sale of electricity are reinvested into the electric grid and help keep SRP prices among the lowest in the Southwest.