SRP rate drop means average $15 savings during hottest 2 months

SRP customers in Tempe and West Chandler received some cool news with the announcement that the utility will reduce its electricity rates for the next two months, saving the typical residential household somewhere in the neighborhood of $15.

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The decision by SRP’s Board of Directors comes at a time when it’s most welcome: traditionally the summer season’s two hottest months.

The savings will appear during the July and August billing cycles.

SRP’s board made the decision during a meeting on June 23. The measure is possible because SRP has been able to reduce expenses in two components of its electric prices, according to an SRP spokesman. 

One of the price components – the Environmental Programs Cost Adjustment Factor, or EPCAF – tracks costs and revenues related to SRP’s renewable energy and energy-efficiency programs adopted to comply with SRP’s sustainable portfolio standard.  The temporary reduction reflects SRP’s ability to meet its sustainable goals at a cost to customers that was lower than expected. 

SRP also instituted a temporary reduction of 1.2 percent in the EPCAF that began with the November 2015 billing cycle and ended with the April 2016 billing cycle.

The second component—the Fuel and Purchased Power Adjustment Mechanism—recovers fuel costs incurred to generate electricity as well as power purchases to serve customer needs.  Savings in this area are primarily because of lower-than-anticipated natural gas costs.

The costs of these two components to SRP are directly passed through to customers without any markup. 

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