Today, the Salt River Project (SRP) publicly elected Board of Directors approved a temporary overall 3 percent summer price decrease through a reduction in its Fuel and Purchased Power Adjustment Mechanism (FPPAM).   

MORE NEWS: SRP new construction program encourages sustainability and cost savings

DEEPER DIVE: Here’s how SRP is powering small business growth

This decrease, which is effective with the May 2026 billing cycle through the October 2026 billing cycle, will provide bill relief to customers during the hottest time of the year. 

The average residential customer will experience a monthly bill decrease of $5.57 during this time. Actual bill impacts will vary based on customer usage and price plan. 

The FPPAM recovers the costs of fuel, including natural gas; purchased power agreements, including those for solar, wind and storage; and market purchases. These costs are passed through to customers without any overhead. SRP’s goal is to keep the FPPAM balance, which is the difference between the total costs of fuel and purchased power and the amount recovered from customers, within the Board-approved target range. Because fuel and purchased power costs can change quickly and often, SRP reviews the FPPAM balance regularly and may recommend adjustments to the FPPAM price as needed. 

SRP management is projecting the FPPAM balance will be more than planned at the end of April 2026 due to higher-than-projected retail sales and lower-than-forecast natural gas and market power costs.  

This temporary FPPAM decrease will reduce customer bills and help align summer prices with the lower fuel and purchased power costs SRP expects to incur.  

SRP management will continue to review the FPPAM balance following the summer price reduction to determine if additional adjustments are needed. 

As a not-for-profit utility, SRP has the lowest electricity prices of any major utility in the state and delivers among the most reliable power of any large utility in the nation, according to eia.gov. 

SRP offers a variety of energy efficiency rebates and resources to help customers manage their energy use and save money on their bills. Information on bill assistance programs can be found at srp.net/heretohelp.