Saturday, November 26 2022 Sign In   |    Register
 

News Quick Search


 

News


Front Page
Power News
Today's News
Yesterday's News
Week of Nov 21
Week of Nov 14
Week of Nov 07
Week of Oct 31
Week of Oct 24
By Topic
By News Partner
Gas News
News Customization
Feedback

 

Pro Plus(+)


Add on products to your professional subscription.
  • Energy Archive News
  •  



    Home > News > Power News > News Article

    Share by Email E-mail Printer Friendly Print

    SRP Board Approves 2022 and 2023 Fuel and Purchased Power Increases


    September 13, 2022 - Targeted News Service

     

      PHOENIX, Arizona, Sept. 13 -- The Salt River Project, a public power utility and electricity provider, issued the following news release on Sept. 12, 2022:

      In an effort to adjust for the increasing costs of fuel and purchased power agreements to Salt River Project, the SRP Board of Directors voted to approve an annual Fuel and Purchased Power Adjustment Mechanism (FPPAM) increase effective November of this year and then a subsequent adjustment for the same amount effective one year later in November 2023. To minimize the financial impacts to customers, the Board voted not to collect from customers $124 million of the existing under-collected balance of fuel costs.

      With this Board action, effective with the November 2022 billing cycle there will be an overall 4.7% average annual increase implemented through the FPPAM. While impacts will vary based on customer price plans and seasonal usage, this will mean an average $5.58 increase in a typical residential monthly bill for the first year, and then a subsequent adjustment for the same amount effective one year later beginning in November 2023.

      SRP routinely monitors costs incurred to purchase fuel for generating stations and buys supplemental power on the wholesale and spot markets to meet customer demand. FPPAM was established to ensure SRP recovers these costs and has flexibility to adjust its mechanism when fuel and spot power prices rise or fall. SRP passes fuel costs directly to customers without any markup. In recent months, fuel and purchased power expenses have increased faster than SRP had adjusted, and SRP's under-collection balance was $306 million at the end of July 2022, necessitating this Board action.

      "SRP is rebalancing our prices to address our substantial under collection with two incremental increases and forgoing collection of a significant amount so that price changes are gradual, and costs are spread equitably among all customers," said SRP General Manager and CEO Mike Hummel. "By breaking up the necessary increase and announcing this upfront, we allow customers to anticipate and plan for upcoming changes."

      The FPPAM cost increases are primarily being driven by higher costs to procure natural gas to operate generating stations, and summer power purchases to meet increasing demand. SRP is not alone in its experience with higher fuel costs and indeed many western United States utilities have also had to pay higher costs for fuel as well as substantial premiums to secure power resource capacity for the peak-demand summer months given the capacity shortage in the region.

      SRP is a community-based not-for-profit utility that aims to keep prices as low as possible for customers. SRP customers pay among the lowest power prices in the western U.S., and part of customers' monthly bills go toward helping SRP recover fuel and wholesale electricity costs. To learn more about the FPPAM and related pricing increases, SRP customers can visit its FPPAM FAQ webpage (https://www.srpnet.com/price-plans/electric-pricing-public-process/fuel-purchased-power-adjustment).

      * * *

      Original text here: https://media.srpnet.com/srp-board-approves-2022-and-2023-fuel-and-purchased-power-increases/

    TOP

    Other Articles - Billing


    TOP

       Home  -  Feedback  -  Contact Us  -  Safe Sender  -  About Energy Central   
    Copyright © 1996-2022 by CyberTech, Inc. All rights reserved.
    Energy Central® and Energy Central Professional® are registered trademarks of CyberTech, Incorporated. Data and information is provided for informational purposes only, and is not intended for trading purposes. CyberTech does not warrant that the information or services of Energy Central will meet any specific requirements; nor will it be error free or uninterrupted; nor shall CyberTech be liable for any indirect, incidental or consequential damages (including lost data, information or profits) sustained or incurred in connection with the use of, operation of, or inability to use Energy Central. Other terms of use may apply. Membership information is confidential and subject to our privacy agreement.