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SRP Electric Rates : Understanding the Upcoming SRP Price Increase

Updated: Oct 12, 2023


srp electric rates

Introduction

Arizona residents, especially those who are customers of the Salt River Project (SRP), one of the leading utilities providers in the region, are set to witness a notable change in their electric bills. With the recent announcement of a significant adjustment to the SRP electric rates, it's crucial to understand the implications for 2023 and beyond.


A Detailed Look at the SRP Price Increase

Starting from the November 2023 billing cycle, the SRP board has approved an average annual increase in the SRP electric rates. While the actual impact will vary based on individual customer plans and usage patterns, on average, a typical residential monthly bill is expected to rise. This trend is set to continue with a similar adjustment slated for 2024.


Reason Behind the SRP Electric Rates Increase

The driving force behind the SRP price hike is the escalating fuel costs and commitments linked to power purchase agreements. To alleviate the burden on customers, the board has chosen to forgo a significant amount of under-collected fuel costs. By the end of the fiscal year, the under-collection balance for SRP had soared to a substantial amount, as covered by ABC 15 and AZ Central.





SRP's Statement on the Price Increase

Mike Hummel, SRP General Manager and CEO, emphasized the company's commitment to its customers, stating, “SRP is rebalancing our prices to address our substantial under-collection with incremental increases and forgoing collection of a significant amount so that price changes are gradual and costs are spread equitably among all customers." This statement and the broader implications of the rate hikes have been extensively covered by media outlets like Rose Law Group Reporter and 12 News.


How SRP Customers Can Adapt to the Price Increase

The SRP price adjustment will undeniably affect all its customers. While this might appear as a minor increment, over time, especially for households with substantial electricity consumption, it can accumulate to a significant amount. One of the promising solutions is the adoption of solar energy. SunPower by Nova provides comprehensive information on solar battery systems that could be beneficial in offsetting the SRP rate increases.


The Power of Solar with Backup Battery Systems

Solar energy has been a beacon of hope for many looking to reduce their dependence on traditional electricity sources. However, for SRP customers, merely installing solar panels might not be enough. SRP policies do not allow customers to achieve a 100% offset using solar energy alone. This limitation emphasizes the importance of integrating solar installations with backup battery systems.



Backup battery systems, like the SunVault, store excess solar energy generated during the day. This stored energy can then be utilized during periods when solar energy generation is low, ensuring a consistent power supply. In scenarios like grid failures or during peak demand times when electricity rates are higher, having a backup system can be a lifesaver.

By combining solar panels with backup battery systems, SRP customers can effectively become their own power suppliers. This combination not only offers protection against rate hikes but also promotes energy independence. Moreover, with advancements in solar technology and battery storage solutions, the efficiency and storage capacity have significantly improved, making it a viable and long-term solution.


Conclusion

For SRP customers, the rate hikes serve as a poignant reminder of the ever-evolving energy landscape. While SRP has provided reasons rooted in rising operational costs, the ramifications for customers are tangible. It's imperative for consumers to brace for these shifts and explore avenues to conserve energy, thereby softening the blow of the rate hikes on their monthly expenditures.


SRP Electric Rates





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