FOR IMMEDIATE RELEASE
February 28, 2025
Contact:
Caryn Potter, SWEEP | cpotter@swenergy.org
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[PHOENIX, AZ] – On Thursday evening, Salt River Project’s (SRP) Board of Directors voted 9-5 to approve an average 3.4% rate increase in residential customer bills. While the decision includes a more pricing option such as a new three-hour on-peak time-of-use (TOU) price plan, it also substantially increases residential customers’ fixed charges, making it more difficult for households to manage their energy costs. The fixed fee is the portion of a customer’s bill that they must pay each month, regardless of the amount of energy they use.
Introducing a new three-hour on-peak TOU rate option benefits customers by offering greater flexibility to manage their energy use and reduce costs by shifting consumption to lower-priced hours. This approach helps avoid the need for costly capital investments in new infrastructure, while also supporting SRP’s efforts to manage increased load from expanding data centers and manufacturing in the Phoenix area.
The newly approved fixed charges poses a risk of negatively impacting customers who use less energy and discouraging energy conservation. It also now ranks as one of the highest residential fixed charges offered by a public power utility in the nation. Under SRP’s pricing proposal, customers will face an increase in their fixed charges based on dwelling type, with those living in typical single-family homes — making up the majority of SRP’s entire customer base — seeing a 50% increase.
“While we’re thrilled to see straightforward rate options that clearly indicate when customers can save by using less power, we’re disappointed that the 50% increase in fixed charges for residential customers will undermine this price signal,” said Caryn Potter, Arizona Representative for the Southwest Energy Efficiency Project (SWEEP). “Raising the portion of a customer’s bill that they can’t control discourages energy efficiency and disproportionately impacts those on fixed and limited incomes.”
Several organizations, including SWEEP, as well as SRP customers filed comments with SRP’s Board, supporting the consumer-friendly TOU price plan as well as stating concern regarding the ability for customers to manage their utility bills.
The Board’s decision will take effect in November 2025.
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The Southwest Energy Efficiency Project (SWEEP) is a public interest organization promoting greater energy efficiency, clean transportation, and beneficial electrification in Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming. swenergy.org
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