Salt River Project announced Monday that it would be raising monthly rates for electricity due to the increased cost of acquiring fuel.
SRP customers will see their bills go up on average of about $5.60 a month beginning in November.
The utility’s board of directors approved the rate hike on Monday, citing increased fuel and power expenses. A second rate increase of the same amount will kick in November 2023.
During Monday's meeting, the board also voted to not recoup $124 million of under-collected funds. In July, the SRP revealed their cumulative balance of under collected funds was upwards of $300 million.
SRP provides electricity to more than 1.1 million customers in the Valley.
The utility hit a peak in energy demand this summer as fuel prices rose considerably.
“SRP’s dealing with higher fuel costs, as well as substantial premiums to secure capacity for power during the peak demand summer months, given that we are really dealing with a lot of capacity shortage in our region,” said Erica Roelfs, a spokeswoman for SRP.
The board also voted to add two flexible natural gas turbines to its Copper Crossing solar facility.
The company hopes to follow that up with increased solar capabilities in the near future.
