Just as Valley residents start bracing for another blistering summer, Salt River Project’s publicly elected Board of Directors is weighing a proposal that could trim about 3% off seasonal electric bills for SRP customers. If the plan gets a green light at a special meeting on March 26, the temporary adjustment would kick in with the May 2026 billing cycle and run through October, a shift SRP says would shave roughly $5.57 a month off the average residential bill.
What the board will consider
The proposal leans on SRP’s Fuel and Purchased Power Adjustment Mechanism (FPPAM), a pricing tool the utility uses to nudge bills up or down to match its real-world fuel and power purchase costs during the high-demand summer stretch. As reported by ABC15, that would translate to about $5.57 in savings each month for the typical household if the board signs off.
When and where the vote will happen
SRP lists two special budget sessions on March 26 on its public meeting calendar, a Special Finance and Budget Committee meeting and a Special District Board session, where pricing decisions are expected to be in the spotlight. The utility posts agendas and related materials on that page so the public can review details and register in advance.
How the fuel adjustment works
The FPPAM is a pass-through mechanism, meaning it is designed to flow SRP’s actual fuel and power purchase costs directly into customer bills, outside of broader rate cases. That setup can let market swings tug bills in either direction. A primer from RMI lays out how different fuel cost-sharing models can either shield customers from some volatility or leave them more exposed, depending on how much risk a utility absorbs.
Context: SRP's recent pricing moves
SRP shows in its newsroom materials that the board approved a package of pricing and price-plan changes in 2025, combining updates to base prices with tweaks to fuel cost recovery. Those materials underscore that a relatively modest summer reduction like the one now on the table would sit alongside broader adjustments the utility put in place last year to balance costs and grid reliability. They also note that FPPAM adjustments have gone both ways over time, sometimes lifting customer charges and sometimes pushing them down.
Next steps for customers
The board is slated to vote on the proposed summer cut on March 26. Customers who want to keep tabs on the decision can watch for posted agendas and any livestream details on SRP’s meeting page and follow local coverage after the vote. This story will be updated once the board takes action and SRP releases any official announcement.
