The increase approved by the Board was nearly 1 percent less than management’s initial proposed increase of 4.8 percent, which was announced in July. Even with the approved November increase, SRP’s electric prices remain among the lowest in the Southwest.
Also approved today by the Board was an annual increase of $24 to the discount for Economy Price Plan customers. The Economy Price Plan (EPP) is available to eligible low-income customers. The increase will be applied exclusively to the six summer months resulting in a summer EPP discount of $21 per month when customer bills are the highest. The winter discount for EPP customers will remain at $17 per month.
SRP also committed to a one-time $400,000 contribution in November to the Arizona Community Action Association (AZCAA) Home Energy Assistance Fund for utility bill assistance. In addition, SRP will provide AZCAA with $100,000 to jointly study effective educational programs to help low-income customers better manage their energy consumption.
SRP prices have not increased in more than two years, and revenues are not keeping pace with several higher anticipated costs. As a result, SRP’s price increase is necessary to:
- Maintain reliable service. Key electric generating facilities are due for major scheduled maintenance. SRP needs to make significant investments in this important infrastructure.
- Pay for new renewable resources. An increasing amount of the energy SRP delivers is produced by solar, wind and geothermal sources. These sources are important to achieving SRP’s sustainability goals but are more expensive than traditional power plants.
- Complete required environmental upgrades. Federally mandated improvements to the Coronado Generating Station in St. Johns will enable SRP to further decrease emissions and continue to operate a low-cost generating unit that supplies power to the Valley.
As a not-for-profit public power utility, net revenues earned by SRP are reinvested in the company to help keep prices lower. Positive net revenues help maintain SRP’s high credit ratings and provide the capital necessary to fund the construction and maintenance of the electrical facilities necessary to provide reliable service.
SRP is the largest provider of electricity to the greater Phoenix metropolitan area, serving more than 950,000 customers in Maricopa and Pinal counties.