SRP’s Board of Directors has approved a 10-month reduction of two electric price components beginning with the January 2017 billing cycle. The overall average 1.6% reduction will be in effect for the billing cycles of January through October — most of 2017. Prices will return to the original winter season prices with the November 2017 billing cycle.
One of the two price components being reduced, the Fuel and Purchased Power Adjustment Mechanism, is related to fuel costs to generate electricity and power purchases that serve our customers’ needs. The other, the Environmental Programs Cost Adjustment Factor, involves costs related to renewable energy and energy efficiency programs adopted to meet SRP’s sustainable portfolio standard.
We are able to lower prices for these reasons:
- The continued low price of natural gas, which is a primary fuel in many power plants
- Careful cost management, which is enabling us to meet our environmental program goals at lower-than-expected costs
- Greater-than-anticipated energy sales
Costs associated with fuel and environmental programs are directly passed on to SRP customers and are not marked up.