SRP extends temporary decrease in electricity prices

Salt River Project’s Board of Directors has approved increasing the amount and extending a six-month temporary decrease in electricity prices passed earlier this year for SRP customers.

(Photo/SRP)

Under the six-month extension recommended by SRP management, prices will be reduced by an additional $24.2 million – or approximately 2.3 percent – effective with the November 2018-April 2019 billing cycles.

SRP’s Board in March approved an $18.8 million temporary decrease in the Fuel and Purchased Power Adjustment Mechanism that is scheduled to end with the October 2018 billing cycle.

The price reduction approved this week extends the decrease by an additional six months and will save the typical SRP residential electric customer an average of about $1.60 per month.

The FPPAM, a component of overall prices, recovers fuel costs incurred to generate electricity as well as power purchases to serve customer needs.

According to Mike Hummel, general manager and CEO, the temporary decrease is possible because the cost of natural gas, a primary fuel in power plants, continues to trend lower. That gives SRP the opportunity to pass the savings to its customers, he said.

SRP is a community-based, not-for-profit public power utility serving more than 1 million customers.

The Queen Creek Independent is mailed each month to 24,000 homes.

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