Salt River Project will increase the average residential customers’ utility bill nearly $12 a month beginning in November.

The SRP board of directors approved the increase Tuesday, March 28. It adds to an increase already planned for Nov. 1.

The increase is in the Fuel and Purchased Power Adjustment Mechanism, which is the rate SRP charges to recover the costs of fuel, including natural gas,  officials said in a release.

The decision will result in a total overall increase of 9.6 percent, or $0.01 per kilowatt-hour, and residential customers will see their bills increase about 8 percent or $11.88, according to SRP.

Last year, the SRP board approved a two-part FFPAM rate increase. The first part went into effect in November 2022.

“Even with these previously approved increases, the under-collected balance for fuel and purchased power would have continued to grow,” officials said in the release.

“This is due to the addition of new renewable and battery storage projects, including some that have become more expensive because of supply chain disruptions, as well as higher costs associated with procuring natural gas and long-term purchased power commitments needed to ensure reliability.”

The rate change is designed to allow SRP to recover fully and timelier the under-collected fuel and purchase balance.

"Accelerating the recovery of our under-collected fuel and purchased power balance is expected to result in fewer FPPAM rate increases going forward and lower overall costs for customers," Mike Hummel, SRP general manager and CEO, said.

"SRP remains committed to keeping rates low as we work to meet the growing energy needs of the Greater Phoenix area."

SRP’s goal is to keep the FPPAM balance at zero, meaning it typically does not over-collect or under-collect for its anticipated fuel and purchased power costs, the release stated.

However, during the COVID-19 pandemic, SRP allowed the FPPAM balance “to be significantly under-collected to maintain rate stability during that time,” utility officials said, adding SRP also went without collecting $82 million in 2021 and $124 million in 2022 of the FPPAM balance to reduce effects on customer prices.

“Since 2010, there have been more FPPAM rate reductions than increases, resulting in the current FPPAM price being 4.4 percent lower than it was at that time,” the release stated.

“Even when today's decision takes effect on Nov. 1, 2023, SRP customers will still have among the lowest electricity rates in the western United States.”

SRP offers a variety of energy efficiency rebates and resources to help customers. For more: https://www.srpnet.com/customer-service/residential-electric/financial-assistance

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