SRP Seeks Price Decrease: Proposes to Lower Overall Average Annual Prices by 2.2 percent

December 20, 2018

Salt River Project is opening a public process on Dec. 20 to consider a proposed overall average annual price decrease of 2.2 percent. The $64 million overall decrease in prices proposed by SRP management is a result of a reduction in fuel expenses and a modest increase in base prices. The proposed decrease will vary by customer type and price plan.

 

The proposed decrease incorporates and is in addition to the decreases SRP implemented on a temporary basis earlier this year. If approved by SRP’s publicly-elected Board, the newly proposed price changes will appear on bills beginning with the May 2019 billing cycle. On average, SRP residential customers would have a proposed decrease of about $1.78 per month in their electric bill, although individual customer experiences would vary by price plan and the way they use energy.

 

According to SRP General Manager and CEO Mike Hummel, SRP has been able to keep prices stable for the past four years through prudent operations and management, strategic resource acquisitions and taking advantage of market conditions that have allowed SRP to generate a greater share of energy using lower-cost natural gas. Hummel added that because natural gas prices are projected to remain low, SRP can continue to pass those savings on directly to its more than 1 million customers.

 

While more than offset by a decrease in fuel expenses, the price proposal reflects a modest increase in base prices that will address investments needed to maintain reliability in the face of customer growth, support SRP’s commitment to increasing sustainable resources and adding new technologies such as battery storage, and reflect the shorter depreciable lives of SRP’s coal generation assets. 

 

“Our customers expect affordable prices and excellent customer service from SRP and they desire a more sustainable future,” Hummel said.  “This proposal balances our responsibility to maintain reliability, offer low prices and customer choices, and have financial flexibility that supports a transition to increased renewable energy technologies.”

 

In addition to an overall reduction in prices, the proposal includes a one-hour reduction in summer on-peak hours for some price plans from 1 - 8 p.m. to 2 - 8 p.m.  The proposal also provides additional pricing options for residential customers who produce some of their own energy using rooftop solar or other technologies, including two non-demand time-of-use price plans and an average daily demand price plan.

 

Also included in the proposal is a significant increase in SRP’s Bill Assistance program.  If approved, SRP will increase the amount they match to the SHARE program (Services to Help Arizonans with Relief on Energy) from $250,000 to a minimum of $500,000 annually for five years. SRP partners with the Salvation Army to provide energy assistance to those in need through SHARE by matching one-time or recurring donations made by SRP customers.

 

Detailed information about the price proposal can be found by visiting www.srpprices.com.  Customers and stakeholders can submit comments and questions on this website, or attend any of the upcoming public meetings:

 

Jan. 22, 6:30 – 9 p.m.                                     Jan. 24, 6:30 – 9 p.m.

American Legion Hall                                    Gilbert Public Library

6822 N. 57th Drive, Glendale                       775 N. Greenfield Road, Gilbert

 

Board meetings

 

Feb. 18 and 26, March 4, 11 and 25, 9:30 a.m.

Arizona Heritage Center at Papago Park

1300 N. College Ave., Tempe

 

SRP is a community-based, not-for-profit public power utility and the largest provider of electricity in the greater Phoenix metropolitan area, serving more than 1 million customers. SRP also is the metropolitan area’s largest supplier of water, delivering about 800,000 acre-feet annually to municipal, urban and agricultural water users. 

 

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