SRP Board of Directors will Vote on Proposal March 26
News Source: SRP
To help provide bill relief to customers during the hottest time of the year, Salt River Project (SRP) management will propose a temporary overall 3 percent summer price decrease through a reduction in its Fuel and Purchased Power Adjustment Mechanism (FPPAM).
If approved by the SRP Board Finance and Budget Committee, the entire Board will vote on the proposal at the Special Board of Directors meeting on March 26.
The FPPAM decrease would be effective with the May 2026 billing cycle through the October 2026 billing cycle. The average residential customer will experience a monthly bill decrease of $5.57 during this time. Actual bill impacts will vary based on customer usage and price plan.
The FPPAM recovers the costs of fuel, including natural gas; purchased power agreements, including those for solar, wind and storage; and market purchases. These costs are passed through to customers without any overhead. SRP’s goal is to keep the FPPAM balance, which is the total costs of fuel and purchased power less the amount recovered from customers, within the Board-approved target range.
SRP management is projecting the FPPAM balance will have a surplus of $56 million at the end of April 2026 due to higher than projected retail sales and lower than forecast natural gas and market power costs. Management’s proposed temporary FPPAM decrease will reduce customer bills and help align summer prices with the lower costs SRP expects to incur.
SRP is a not-for-profit utility and does not have investors. Any revenue in excess of expenses is reinvested back into our electric system to help maintain price stability and reliability for customers. SRP has the lowest electricity prices of any major utility in the state and delivers among the most reliable power of any large utility in the nation, according to eia.gov.
SRP offers a variety of energy efficiency rebates and resources to help customers manage their energy use and save money on their bills. Information on bill assistance programs can be found at srp.net/heretohelp.
