PHOENIX — The Salt River Project Board of Directors has approved an additional rate increase to be paid by customers on top of another increase already planned for November 2023.
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SRP said the new Fuel and Purchased Power Adjustment Mechanism (FPPAM) increase "will result in a total overall increase of 9.6%, or $0.01 per kilowatt-hour (kWh)."
The average increase for residential customers will be 8%, SRP said. An average residential customer uses 1,188 kWh per month, which would be an increase of $11.88 per month.
The FPPAM increase is in an effort to help recover costs in the company.
SRP said the costs for the company to purchase fuel, power, renewable and battery storage projects, and more have continued to increase, and those balances have been previously under-collected despite other increases.
"Accelerating the recovery of our under-collected fuel and purchased power balance is expected to result in fewer FPPAM rate increases going forward and lower overall costs for customers," said SRP General Manager and CEO Mike Hummel, in a press release. "SRP remains committed to keeping rates low as we work to meet the growing energy needs of the Greater Phoenix area."
SRP customers saw a 4.7% rate increase last November, equating to an average $5.58 monthly increase. Another 4.7% rate increase was approved for November 2023. Tuesday’s further increase approval brings the total increase up another 0.2%, up to 9.6%.
