The Salt River Project (SRP) Board of Directors has approved a temporary decrease in electricity prices that will lower customer bills during the hottest months of the year.

The price reduction will take effect with the May 2026 billing cycle and remain in place through October 2026.

Overall, SRP customers will see about a 3 percent decrease in summer electricity prices during this period.

For the average residential customer, the change is expected to lower monthly bills by about $5.57. The exact amount each household saves will depend on how much electricity they use and the pricing plan they are enrolled in.

The decrease is tied to a reduction in SRP's Fuel and Purchased Power Adjustment Mechanism, commonly referred to as the FPPAM.

This adjustment is used to recover the cost of generating and purchasing electricity. These costs include:

• Fuel used to produce electricity, such as natural gas
• Electricity purchased from other power providers
• Power agreements for renewable energy sources such as solar, wind, and energy storage
• Electricity purchased on the open market

SRP does not add overhead or profit to these charges. Instead, the costs are passed directly to customers.

Because fuel and power costs can change quickly, SRP regularly reviews the FPPAM balance. This balance reflects the difference between the actual cost of fuel and purchased power and the amount collected from customers through their bills.

According to SRP management, the balance is expected to be higher than planned by the end of April 2026. This is largely due to higher-than-expected electricity sales and lower costs for natural gas and market power purchases.

Reducing the FPPAM for the summer months allows SRP to adjust customer bills to reflect those lower costs.

The temporary reduction will appear automatically on bills beginning in May 2026 and continue through October 2026.

While the average monthly savings is projected at $5.57, customers who use more electricity—especially during the summer—may see a larger or smaller change depending on their usage and plan.

SRP officials say they will continue monitoring fuel and purchased power costs during and after the summer to determine whether additional adjustments are needed.

SRP also offers programs and resources designed to help customers reduce energy use and lower their bills. These include energy efficiency rebates, bill assistance programs, and other customer support services.

More information about available assistance programs can be found at srp.net/heretohelp.