PHOENIX — Salt River Project (SRP) customers can expect higher electric bills in November as the utility implements a new pricing plan.
The plan, which was announced in February, will raise the bill for an average residential customer by 3.5%, or $5.61 per month, according to SRP.
However, the exact amount of the price increase will vary from customer to customer due to usage and the plan they are subscribed to.
This is the first time SRP has raised rates on its base plans since 2019, but bills have increased in recent years due to changes in fees.
SRP adds new pricing plans
SRP will implement two new time-of-day price plans for residential customers that include “super-off-peak” hours, which are half the price of SRP’s basic price plan.
The “Conserve 6-9 p.m. and Save” plan will offer super-off-peak hours between 8 a.m. and 3 p.m. daily and on-peak hours between 6 p.m. and 9 p.m. on weekdays, except for six holidays.
The “Manage Demand 5-10 p.m. and Save” plan will offer the same super-off-peak hours, but on-peak hours will be from 5 p.m. to 10 p.m. on weekdays outside of the six holidays.
Current SRP customers can switch to one of the new plans or stay on their current plan through November 2029.
SRP electric bill discount program expanding
SRP will also expand its Income-Qualified Discount program, formerly called the Economy Price Plan.
Customers who earn between 0% and 150% of the federal poverty level will see their discount increased from $23 to $35 per month.
Additionally, SRP will offer a $10 per month discount to all customers who make between 151% and 200% of the federal poverty level.
Why is SRP increasing rates?
SRP is raising rates because it needs $169 million in additional revenue to cover upgrades to the electric system, meet the costs of customer programs and other factors.
The increase is partially offset by a $68.7 million decrease in the cost of fuel and purchased power expenses through the Fuel and Purchased Power Adjustment Mechanism rate, according to SRP.
The rate increase was approved after a three-month process that began late last year and included public input.
More information can be found on SRP’s website.
SRP is a not-for-profit utility that does not have investors. It reinvests all revenues in excess of expenses into its electric systems to help keep rates stable for customers. It is the Valley’s largest electricity provider with about 1.1 million customers.
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