SRP Approves 2.4% Rate Increase Effective November 2025: What Customers Need to Know

📈 Overview of the Approved Rate Increase

On February 27, 2025, the Salt River Project (SRP) Board of Directors approved a comprehensive pricing proposal resulting in an overall 2.4% increase in electric rates, effective with the November 2025 billing cycle. For the average residential customer consuming 1,117 kilowatt-hours (kWh) per month, this translates to an approximate $5.61 monthly increase. 

💡 Breakdown of Rate Changes

🔹 Residential Customers

• Base Rate Increase: 4.2%

• Fuel and Purchased Power Adjustment Mechanism (FPPAM): Decrease of 0.8%

• Net Impact: 3.4% increase for standard residential customers

• Solar Customers: Average increase of 5.5%, reflecting adjustments in cost recovery 

🔹 Monthly Service Charge (MSC) Tiers

SRP is introducing a tiered MSC structure:

• Tier 1: $20 for multifamily homes (apartments, condominiums, townhomes)

• Tier 2: $30 for typical single-family homes

• Tier 3: $40 for homes with large electric service entrances (approximately 3% of customers) 

🔄 Changes to Price Plans

🕒 Time-of-Use (TOU) Plans

SRP is introducing two new TOU plans featuring super off-peak daytime hours (8 a.m. to 3 p.m.) with rates approximately 50% lower than the basic plan. These plans aim to encourage energy usage during periods of lower demand and higher renewable energy availability. 

❄️ Freezing of Legacy Plans

Effective November 2025, SRP will freeze enrollment for several existing plans, including:

• E-21 EZ-3 Price Plan (3–6 p.m.)

• E-22 EZ-3 Price Plan (4–7 p.m.)

• E-26 Time-of-Use Price Plan

• E-29 Electric Vehicle Price Plan

These plans will be eliminated by November 2029. 

💰 Support for Low-Income Customers

SRP is enhancing its Economy Price Plan to provide greater assistance:

• 0–150% of Federal Poverty Level (FPL): Monthly bill credit increased from $23 to $35

• 151–200% of FPL: New monthly bill credit of $10

• Additionally, SRP is allocating $5 million annually to support its bill assistance program, administered through Wildfire. 

🛠️ Reasons Behind the Rate Increase

SRP cites several factors necessitating the rate adjustments:

• Infrastructure Upgrades: Investments in modernizing and maintaining the electric grid to ensure reliability.

• Customer Programs: Funding enhancements to customer service and energy efficiency programs.

• Sustainability Goals: Supporting the transition to cleaner energy sources and meeting environmental objectives.

📅 Implementation Timeline

• Effective Date: November 2025 billing cycle

• Customer Notifications: SRP will inform customers of the changes via mail and email prior to implementation. 

🔍 Resources for Customers

• Plan Comparison: SRP offers tools to help customers compare price plans and select the most cost-effective option based on their usage patterns.

• Energy Efficiency Programs: Customers can explore rebates and programs to reduce energy consumption and costs.

• Assistance Programs: Information on bill assistance and eligibility is available through SRP's customer service channels.

📝 Conclusion

The approved rate increase reflects SRP's commitment to maintaining a reliable and sustainable energy system while addressing the needs of its diverse customer base. Customers are encouraged to review the upcoming changes and explore available resources to manage their energy usage and costs effectively.

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