Salt River Project is starting the process to raise its electric rates an estimated 3.5% over current levels for average residential users.

The utility, which provides electricity and water throughout the Valley from Mesa and Gilbert to Peoria and Glendale, made the announcement Monday.

The potential adjustment would increase its revenue nearly $169 million annually in base revenue that would go along with a decrease of $67.7 million annually for its fuel and purchased power revenue from a separate charge to users.

SRP estimates if the rate hike is approved, it would result in a $5.64 increase for the average residence using about 1,117 kilowatt-hours per month. It would be slated to take effect in November 2025.

Utility officials in a press release said actual impacts will depend on users' customer use and price plan. The base rate has not been raised since 2019.

“SRP is committed to delivering exceptional service as we work to provide reliable and sustainable power. As a not-for-profit, community-based utility, we make decisions based on what is best for our customers, not investors,” said Jim Pratt, SRP general manager and CEO. “SRP management’s proposal reflects increases in the company’s operational costs driven by needed improvements to the electric grid to maintain reliability and meet our ambitious sustainability and decarbonization goals, by rising labor costs and by important customer service enhancements.”

The proposal also includes:

• Increasing the limited-income Economy Price Plan bill credit to $25 a month and expanding program eligibility so more customers can participate;

• Tiered residential monthly service charges;

• New price plans with super-off-peak daytime time-of-use hours;

The plan represents funding needed for a change to the grid used to supply power to homes and businesses and how customers are using it, Pratt said in a press release.

SRP plans two public forums on the change, with a final board vote slated for Feb. 27, 2025. SRP customers and stakeholders can learn more about the pricing proposal and submit comments and questions at srp.net/srpprices or at multiple public events:

• Open House Tuesday, 6:30-9:30 p.m. Jan. 7 at Glendale Community College - Student Union, 6000 W Olive Ave., Glendale. Parking located off 61st Avenue.
• Open House Tuesday, 6:30-9:30 p.m. Jan. 9 at ASU Polytech - Student Union, 5999 S. Backus Mall, Mesa. Free parking in Lot 10.

Special SRP Board of Directors Meetings will be held at SRP’s Public Administration Building, 1500 N. Mill Ave., Tempe, and will be available via live stream video at srp.net/srpprices.

• Friday, Jan. 31, at 9:30 a.m. – Presentation and Comments
• Thursday, Feb. 6, at 9:30 a.m. – Additional meeting, if needed
• Tuesday, Feb. 11, at 9:30 a.m. – Additional meeting, if needed
• Thursday, Feb. 27, at 9:30 a.m. – Anticipated Final Vote

The SRP board last approved changes to base prices in 2019. Base prices recover SRP costs, including those for operations and maintenance, infrastructure to support reliability and customer service. The fuel rate recovers the costs of fuel, including natural gas; purchased power agreements, including those for solar, wind and storage; and market purchases used to help maintain energy reliability. These costs are passed through to customers without any overhead.