Fuel and Purchased Power Adjustment Mechanism FAQ
As a community-based not-for-profit utility, SRP sets prices based on the cost we pay to provide power.
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Some of these costs, like the cost of fuel and wholesale electricity, fluctuate often. The Fuel and Purchased Power Adjustment Mechanism (FPPAM) helps SRP recover these costs in a timely manner.
Frequently asked questions
Part of every SRP customer's monthly bill goes toward FPPAM. SRP monitors fuel and wholesale electricity costs closely and, from time to time, we make FPPAM adjustments based on the market. We also make price adjustments so that, in the long run, customers pay the actual cost of fuel and purchased power with no mark up.
Even with previously approved increases during the past two years, the under-collected balance for fuel and purchased power would continue to grow. This is due to the addition of new renewables and battery storage projects, including some that have become more expensive because of supply chain disruptions, as well as higher costs associated with procuring natural gas and long-term purchased power commitments needed to ensure reliability.
- The SRP Board of Directors approved an increase to the Fuel and Purchased Power Adjustment Mechanism (FPPAM) rate change for November 1, 2024. This rate change will allow SRP to fully recover the under-collected fuel and purchase balance on a timelier basis.
- Residential customers will experience an average increase of 3.2%, which will depend on actual per-kWh usage, the average residential customer using 1,169 kWh/month will experience an increase of $4.93 /month.
- Commercial customers will see an average increase of 3.8%, depending on power usage and rate plan they are currently on.
If you need help paying your bill, call us now at (602) 236-8888(602) 236-8888. Our customer care team is available 24 hours a day, seven days a week, and we have programs, partners and resource counselors ready to support you. Or, if you're a business customer, call (602) 236-8833(602) 236-8833 weekdays between 7 a.m. and 5 p.m.
