Salt River Project’s publicly-elected board of directors has approved an overall average 1.2 percent price decrease beginning in November and ending with the 2016 April billing cycle that will save the average customer just under $1 per month.
The temporary reduction in prices is intended to balance an over-collection in the Environmental Programs Cost Adjustment Factor, or EPCAF.
SRP instituted a similar temporary reduction (1.1 percent) that began with the 2013 May billing cycle.
The 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.
EPCAF costs to SRP are directly passed through to customers without any mark up.
The temporary reduction will decrease the EPCAF balance by about $12.5 million and reduce the typical monthly residential winter bill by about 88 cents from $84.25 to $83.37. The temporary decrease will end with the May 2016 billing cycle.
The board has directed SRP to meet 20 percent of its retail electricity requirements through sustainable resources by 2020. Currently, SRP is ahead of schedule — providing about 12 percent of retail energy needs with sustainable resources, including solar, wind and geothermal energy as well as an innovative package of energy-efficiency programs.
SRP is a community-based, not-for-profit public power utility and the largest provider of electricity in the greater Phoenix metropolitan area, serving more than 1 million customers. SRP also is the metropolitan area’s largest supplier of water, delivering about 800,000 acre-feet annually to municipal, urban and agricultural water users.