Salt River Project (SRP) management opened a public pricing process that seeks an overall 2.4 percent price increase. This price change reflects a proposed increase of $168.8 million in base revenue to support upgrades to the power system and an anticipated decrease of $67.7 million in fuel and purchased power revenues, which are recovered through the Fuel and Purchased Power Adjustment Mechanism (FPPAM) rate.
If approved by SRP’s publicly elected Board of Directors, the average residential customer using 1,117 kilowatt-hours (kWh) a month will see a monthly bill increase of 3.5 percent, or $5.64, effective with the November 2025 billing cycle. Actual bill impacts will vary based on customer usage and price plan.
If approved as proposed, SRP customers would still pay among the lowest electricity prices in the southwestern U.S. and the lowest rates of any major utility in the state.
“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 Chief Executive Officer. “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.”
Other elements of the pricing process proposal include:
- 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
- Freezing new participation in some current time-of-use price plans
“Our grid is undergoing a transformation in how energy is generated and the ways our customers are using it,” said Pratt. “This proposal seeks to provide plans and options that meet our customers’ needs while ensuring we maintain the reliability and affordability that are critical to our communities.”
SRP’s Board of Directors will conduct a detailed review of the pricing proposal and consider public feedback before making a decision. A final vote is expected to be made at a public Special Board of Directors meeting on Thursday, February 27, 2025.
Any approved changes would take effect with the November 2025 billing cycle.
