SRP bumps up fuel, purchased power rates 3.9%

Salt River Project is raising its rate for fuel and purchased power for comsumers by about 3.9% effective Nov. 1.

SRP’s board of directors approved the increase on Monday, saying the bill impacts should increase about 3.2% for average residential customers, though the actual amount will depend on how much power people use.

SRP estimates that an average customer using 1,169 kilowatt-hours per month would see a $4.93 increase in their bill.

The increase was to the Fuel and Purchased Power Adjustment Mechanism, one that allows the utility to raise or lower rates dependent on the price of fuel such as natural gas as well as how much it has to pay for spot power use on open markets. The rate also includes power purchase agreements for renewable projects and storage.

SRP said in a press release that it under-collected about $300 million during the past year, despite having increased the same rate in July 2024. During 2021 and 2022, the utility didn’t pass along a roughly combined $206 million in under-collection.

Officials expect the rate change will allow them to collect the $300 million during the next 18 months, according to the release.

SRP offers a variety of energy efficiency rebates and resources to help customers lower their energy use and save money on their bills. Information on other bill assistance programs can be found at srpnet.com/heretohelp.