SRP Price Calculator
Calculate how Salt River Project (SRP) determines your electricity prices based on usage, time-of-use rates, and seasonal factors.
Your SRP Price Breakdown
How Is SRP Price Calculated? A Complete Guide to Understanding Your Electricity Bill
Salt River Project (SRP) is one of Arizona’s largest utility providers, serving over 1 million customers in the Phoenix metropolitan area. Unlike traditional investor-owned utilities, SRP is a community-based, not-for-profit organization that operates under different regulatory structures. This comprehensive guide explains how SRP calculates your electricity prices, the factors that influence your bill, and how you can potentially reduce your costs.
1. Understanding SRP’s Rate Structure
SRP uses a tiered rate structure that varies based on several factors:
- Time of Use: Different rates for on-peak and off-peak hours
- Seasonal Variations: Higher rates during summer months (June-September)
- Usage Tiers: Progressive pricing based on consumption levels
- Service Type: Residential, commercial, or special programs like electric vehicle charging
1.1 Basic Service Charge
All SRP customers pay a basic service charge that covers the fixed costs of maintaining the electrical infrastructure. As of 2023, this charge is:
- $20.00 per month for most residential customers
- $25.00 per month for customers on the Electric Vehicle (E-28) plan
1.2 Energy Charges
The energy charge is the variable portion of your bill that depends on how much electricity you use. SRP measures this in kilowatt-hours (kWh). The rate you pay per kWh depends on:
- Your chosen rate plan
- The time of day you use electricity
- The season (summer vs. winter)
- Your total monthly consumption
2. SRP Rate Plans Explained
SRP offers several rate plans to accommodate different usage patterns. Here’s a breakdown of the most common residential plans:
| Plan Name | Best For | Summer On-Peak Rate (2-8pm) | Summer Off-Peak Rate | Winter Rate |
|---|---|---|---|---|
| Basic (E-26) | Customers with consistent usage patterns | $0.1295/kWh | $0.1295/kWh | $0.1039/kWh |
| Time-of-Use (E-27) | Customers who can shift usage to off-peak hours | $0.2475/kWh | $0.0986/kWh | $0.1039/kWh |
| Demand (E-32) | Customers with high, consistent usage | Varies by demand | Varies by demand | Varies by demand |
| Electric Vehicle (E-28) | EV owners with separate meter | $0.1295/kWh | $0.0695/kWh (super off-peak) | $0.1039/kWh |
2.1 Basic Plan (E-26)
The Basic plan is the simplest option with a flat rate that doesn’t change based on time of use. This plan is ideal for customers who:
- Have consistent electricity usage throughout the day
- Don’t want to monitor their usage times
- Use most of their electricity during peak hours
2.2 Time-of-Use Plan (E-27)
The Time-of-Use plan offers lower rates during off-peak hours but significantly higher rates during peak hours (2-8 pm on weekdays during summer). This plan can save money if you can shift at least 30% of your summer usage to off-peak hours.
Peak Hours:
- Summer (June-September): 2 pm – 8 pm, Monday through Friday
- Winter (October-May): No peak hours – same rate all day
2.3 Demand Plan (E-32)
The Demand plan charges based on both energy consumption and the highest 30-minute period of demand during on-peak hours. This plan can be cost-effective for customers with:
- High, consistent electricity usage
- Ability to manage peak demand periods
- Large homes with significant cooling needs
2.4 Electric Vehicle Plan (E-28)
Designed specifically for electric vehicle owners, this plan requires a separate meter for EV charging and offers:
- Super off-peak rates (11 pm – 5 pm) as low as $0.0695/kWh
- Higher basic service charge ($25/month)
- Same rates as Basic plan during other times
3. Seasonal Price Variations
SRP implements seasonal pricing to reflect the higher costs of generating electricity during Arizona’s hot summer months:
| Season | Duration | Key Characteristics | Typical Rate Increase |
|---|---|---|---|
| Summer | June 1 – September 30 |
|
~20-25% higher than winter |
| Winter | October 1 – May 31 |
|
Base rate |
The seasonal difference reflects the actual cost of generating and delivering electricity during periods of high demand. During summer months, SRP may need to use more expensive peaker plants to meet demand, which is reflected in the higher rates.
4. How Solar Affects Your SRP Bill
If you have solar panels, SRP’s net metering program (called “Customer Generation Price Plan”) affects how your bill is calculated:
- Energy Export Credit: You receive credit for excess solar energy sent to the grid at $0.039/kWh (as of 2023)
- Energy Import Charge: You pay the full retail rate for energy you use from the grid
- Basic Service Charge: Still applies even with solar
- Demand Charges: May apply during peak hours for some rate plans
Important note: SRP’s solar program changed in 2023, reducing the export credit from previous levels. The current program is designed to:
- Reflect the actual value of solar energy to the grid
- Ensure all customers pay their fair share of infrastructure costs
- Encourage energy storage solutions
4.1 Calculating Solar Savings
To estimate your solar savings:
- Calculate your total energy usage from the grid (kWh)
- Multiply by your applicable rate (varies by plan and season)
- Subtract credits for excess solar energy exported
- Add the basic service charge
- For Time-of-Use plans, account for when you use grid energy
5. Additional Fees and Charges
Beyond the basic energy charges, your SRP bill may include:
- Power Supply Adjustment: Varies monthly based on fuel costs (typically $0.002-$0.005/kWh)
- Environmental Compliance Adjustment: Covers costs of meeting environmental regulations (~$0.001/kWh)
- Transmission Cost Adjustment: Covers federal transmission costs (~$0.002/kWh)
- Taxes: State and local taxes may apply
These adjustments are typically small but can add up, especially for high-usage customers. SRP provides a detailed breakdown of these charges on your monthly bill.
6. How to Reduce Your SRP Bill
Understanding how SRP calculates your bill enables you to take strategic actions to reduce costs:
6.1 For All Customers
- Improve energy efficiency: Upgrade to LED lighting, improve insulation, and use ENERGY STAR appliances
- Adjust thermostat settings: Set to 78°F in summer and 68°F in winter when home
- Use ceiling fans: Can make rooms feel 4°F cooler, allowing higher thermostat settings
- Seal air leaks: Reduce energy waste from drafts around windows and doors
6.2 For Time-of-Use Customers
- Shift usage to off-peak: Run major appliances (dishwasher, laundry) after 8 pm
- Pre-cool your home: Lower temperatures before 2 pm, then let it warm slightly during peak
- Use timers: Automate appliances to run during off-peak hours
- Charge EVs overnight: Take advantage of lower rates
6.3 For Solar Customers
- Add battery storage: Store excess solar for use during peak hours
- Optimize solar production: Ensure panels are properly angled and maintained
- Monitor usage patterns: Use solar energy when it’s being generated
- Consider the E-28 plan: If you have an EV, this plan offers super off-peak rates
7. Understanding Your SRP Bill
Your SRP bill contains several important sections:
- Account Summary: Shows current charges, previous balance, and payment due
- Usage Graph: Visual representation of your daily usage
- Detailed Charges: Breakdown of energy charges, adjustments, and taxes
- Comparison Data: Shows your usage vs. similar homes and previous months
- Messages: Important notifications about your account or rate changes
The “Detailed Charges” section is particularly important as it shows:
- Energy charges broken down by rate periods (if on Time-of-Use)
- Any demand charges (for E-32 customers)
- Adjustments for fuel costs and environmental compliance
- Credits for solar energy (if applicable)
8. SRP Price Trends and Future Outlook
SRP’s prices have generally increased over time due to several factors:
- Infrastructure investments: Upgrading the grid for reliability and renewable integration
- Fuel costs: Natural gas prices affect generation costs
- Regulatory requirements: Environmental compliance and renewable energy mandates
- Inflation: General increase in operating costs
Looking ahead, SRP has committed to:
- Adding 2,025 MW of new solar energy by 2025
- Increasing battery storage capacity to 1,000 MW by 2035
- Reducing carbon intensity by 65% from 2005 levels by 2035
- Closing all coal plants by 2032
These changes may affect future pricing as SRP transitions to cleaner but potentially more expensive energy sources. However, the long-term goal is to provide stable, affordable rates while meeting sustainability targets.
9. Comparing SRP to Other Arizona Utilities
SRP’s rates are generally competitive with other major Arizona utilities:
| Utility | Average Residential Rate (2023) | Rate Structure | Key Differences |
|---|---|---|---|
| SRP | $0.1295/kWh (summer basic) | Tiered, time-of-use options |
|
| APS | $0.135/kWh (summer) | Tiered, time-of-use |
|
| TEP | $0.128/kWh (summer) | Tiered, time-of-use |
|
While rates are similar, the key differences lie in:
- Regulatory structure: SRP is not regulated by the Arizona Corporation Commission
- Solar policies: SRP’s program differs from APS and TEP
- Peak hours: Time-of-use periods vary between utilities
- Customer service: SRP consistently ranks high in customer satisfaction
10. Common Questions About SRP Pricing
10.1 Why are summer rates higher than winter rates?
Summer rates reflect the actual cost of generating electricity during periods of peak demand. In Arizona’s extreme heat:
- More expensive peaker plants may need to operate
- Transmission systems are under greater stress
- Overall demand is 2-3 times higher than winter
10.2 How often does SRP change its rates?
SRP typically reviews rates annually and may adjust them based on:
- Changes in fuel costs
- Infrastructure investment needs
- Regulatory requirements
- Inflation
Major rate changes usually occur in the spring, effective for the summer season.
10.3 Can I switch rate plans anytime?
Yes, SRP allows customers to switch rate plans, but with some restrictions:
- You can change plans once per 12-month period
- Some plans (like E-28 for EVs) have specific eligibility requirements
- Changes typically take effect with your next billing cycle
10.4 How does SRP calculate the Power Supply Adjustment?
The Power Supply Adjustment (PSA) is a variable charge that reflects changes in:
- Fuel costs for power generation
- Purchased power expenses
- Other power supply-related costs
This adjustment is calculated monthly and can be positive or negative, though it’s typically a small charge per kWh.
10.5 What’s the best rate plan for me?
The optimal rate plan depends on your specific usage patterns:
- Basic Plan (E-26): Best if you use most electricity during peak hours or have consistent usage
- Time-of-Use (E-27): Best if you can shift at least 30% of summer usage to off-peak
- Demand Plan (E-32): Best for high-usage customers who can manage peak demand
- EV Plan (E-28): Best for electric vehicle owners with separate charging circuits
SRP offers a rate comparison tool to help determine which plan might save you the most.
11. Authoritative Resources
For the most accurate and up-to-date information about SRP pricing:
- SRP Official Price Pages – Current rate plans and pricing information
- U.S. Department of Energy Solar Guide – Information about solar options and net metering
- EIA Arizona Electricity Profile – State-level electricity data and trends
For historical rate information and regulatory context, you can also consult:
- Arizona State Legislature – For information on energy-related laws
- Arizona Commerce Authority Energy Office – State energy policies and programs