Proposed sed A Adjustmen ents to to SRPs S Standard E Electric - - PowerPoint PPT Presentation

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Proposed sed A Adjustmen ents to to SRPs S Standard E Electric - - PowerPoint PPT Presentation

Jan 21, 2023 183 likes •421 views

Proposed sed A Adjustmen ents to to SRPs S Standard E Electric Price P e Plans John hn T Tuc ucker Dir irect ctor or, C , Cor orpor orate Prici cing Jan anuary ry 2019 2019 2019 P Pricing P Proposal al Overall

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SLIDE 1

Proposed sed A Adjustmen ents to to SRP’s S Standard E Electric Price P e Plans

John hn T Tuc ucker Dir irect ctor

  • r, C

, Cor

  • rpor
  • rate Prici

cing Jan anuary ry 2019 2019

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SLIDE 2

2019 P Pricing P Proposal al

  • Overall average price reduction of 2.2%
  • More choices for residential solar customers
  • Reduced Time-of-Use on-peak hours
  • Reduced M-Power (E-24) prices to better align with Basic (E-23)

prices

  • Elimination of Environmental Programs Cost Adjustment Factor

(EPCAF)

January 2019

2

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SLIDE 3

SRP’s P Prici cing P Princi ciples

January 2019

3

  • Cost Relation: Prices need to reflect cost of service
  • Equity: Treat all customers in an economically fair manner
  • Sufficiency: Prices need to maintain enterprise financial health
  • Gradualism: Stabilize price levels, smoothing the impact of cost

movements

  • Customer Choice: Promote pricing options that help customers manage

their bills (e.g., Time-of-Use)

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SLIDE 4

Cur Curren ent & & Proposed P d Prices es

January 2019

4

Overall Retail Price

10.04 9.89 9.68

9.50 9.60 9.70 9.80 9.90 10.00 10.10

FY 2015 FY 2019 Proposed FY 2020 Cents per kWh

  • 1.5%
  • 2.2%

*Proposed prices for FY20 would be 3.7% below those approved for FY15

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SLIDE 5

Proposal al

  • 3.9%
  • 2.2%

+1.7%

  • 4.5%
  • 4.0%
  • 3.5%
  • 3.0%
  • 2.5%
  • 2.0%
  • 1.5%
  • 1.0%
  • 0.5%

0.0% Fuel Decrease Base Increase Overall Change

Change in Overall Prices

January 2019

5

*Percentages based on overall bill

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SLIDE 6

Proposed A Averag age A Adjustment Varies b by Cl Clas ass

  • 1.3%
  • 2.4%
  • 3.8%
  • 4.5%
  • 4.0%
  • 3.5%
  • 3.0%
  • 2.5%
  • 2.0%
  • 1.5%
  • 1.0%
  • 0.5%

0.0% Residential Commercial Industrial

January 2019

6

  • 2.2%
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SLIDE 7

Why t the Changes a are Needed

  • To decrease overall prices to reflect lower fuel costs
  • To keep up with economic growth and maintain reliability
  • To support the transition to sustainable resources and new technologies

January 2019

7

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SLIDE 8

9.68 9.68 9.89 10.70 12.08 16.57 Salt River Project (Proposed) Nevada Salt River Project (Current) New Mexico Arizona* Southern California

January 2019

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Price Co Comparis rison

Over erall P Price ( e (Cen ents p per k kWh)

Source: Dept. of Energy EIA-826 Reports for 12 months ending September 30, 2018 Source for SRP Prices: SRP Test Year Data *Arizona does not include SRP

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SLIDE 9

SRP 2 P 2035 S Sustainability G Goals: Focu cus A Areas

January 2019

9

Current Process

  • You’re invited to offer input on existing goals or propose new goals for the

Board’s consideration

  • You can submit comments through February 7th at www.srpnet.com/2035

Carbon Emissions Reductions Water Resiliency Supply Chain & Waste Reduction Grid Modernization

Customer & Employee Engagement & Community Involvement

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SLIDE 10

En Envi vironmental Programs C Cost A Adjustment Fact ctor

  • Renewable energy and energy efficiency are part of SRP's core business
  • Environmental programs continue, but costs rolled into other billing

components

  • Costs of renewable energy and energy efficiency are proposed to be

recovered though the Fuel and Purchased Power Adjustment Mechanism (FPPAM) or base prices

January 2019

10

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SLIDE 11

Residenti tial H Highlights ts

  • Proposed residential bill impacts
  • Reduced Time-of-Use on-peak hours
  • EZ-3 program changes
  • Reduced M-Power (E-24) prices to better align with Basic (E-23) prices
  • More choices for residential solar customers

January 2019

11

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SLIDE 12

Proposed A Averag age Residential C Customer B Bill Impact ct

January 2019

12

Average Monthly Usage (kWh) Average Monthly Impact Total Impact Basic E-23 1,074

  • $1.12
  • 0.9%

M-Power E-24 1,037

  • $3.75
  • 2.9%

EZ-3 E-21, E-22, E-25 1,251

  • $1.53
  • 1.1%

Time-of-Use E-26 1,593

  • $2.27
  • 1.3%

Customer Generation E-27 587

  • $1.03
  • 0.9%
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SLIDE 13

New T Time me-of

  • f-Use S

Summe mmer O On-Peak H Hours

January 2019

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Current Proposed

Impacted Price Plans TOU E-26 Customer Generation E-27 TOU EV E-29 Residential Demand E-27P

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SLIDE 14

EZ-3 P Program

January 2019

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End Pilot, Make Standard Price Plan Standard Price Plan End Pilot

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SLIDE 15

Reduce ced M M-Power ( (E-24) 24) Pr Prices to to Be Better er A Align wi with Basic ( (E-23) 23) p prices

January 2019

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0.00 2.00 4.00 6.00 8.00 10.00 12.00

6 Month Summer Avg Winter

Cents per kWh

E-24 Proposed E-23 Proposed

*Average seasonal kWh prices, does not include Monthly Service Charge

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SLIDE 16

More C Choice ces for R Residential Solar C Customers

  • Proposing 4 options for these customers
  • Customer Generation E-27 (existing)
  • Average Demand E-15
  • TOU Export E-13 (non-demand)
  • TOU Export for EVs E-14 (non-demand)

January 2019

16

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SLIDE 17

Before S Solar ( (Illustrative)

January 2019

17

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SLIDE 18

After S Sola lar, N Net Billin illing ( (Illu llustrative)

January 2019

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SLIDE 19

After S Sola lar, D Deliv livered/Export Billin illing ( (Illu llustrative)

January 2019

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SLIDE 20

New D Distributed G Generation P Price ce Pl Plans

Price Plan Monthly Service Charge kW Price Component kWh Prices Excess kWh Credit Demand

Customer Generation E-27 Unchanged Tiered, On-Peak Monthly Maximum On/Off-Peak (Net kWh) N/A Average Demand E-15 Equal to E-27 Flat, Average of Daily On-Peak Maximums Equal to E-27 (Net kWh) N/A

Non-Demand

TOU Export E-13 Equal to E-27 N/A Equal to E-26 TOU (Delivered kWh) $0.0281/kWh TOU Export for EVs E-14 Equal to E-27 N/A Equal to E-29 TOU EV (Delivered kWh) $0.0281/kWh

January 2019

20

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SLIDE 21

Pr Proposal R Reca cap

  • Overall average price reduction of 2.2%
  • More choices for residential solar customers
  • Reduced Time-of-Use on-peak hours
  • Reduced M-Power (E-24) prices to better align with Basic (E-23)

prices

  • Elimination of Environmental Programs Cost Adjustment Factor

(EPCAF)

January 2019

21

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SLIDE 22

Calendar ar

January 2019

22

Open Information Center/Mail Public Notice December 20th Customer/Stakeholder Meetings January 22nd and 24th 1st Board Meeting February 18th 2nd Board Meeting February 26th 3rd Board Meeting March 4th 4th Board Meeting March 11th Deadline to Submit Written Comments March 15th 5th Board Meeting (Decision Meeting) March 25th Implement Price Plans May Billing Cycle

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SLIDE 23

Price Process I Infor

  • rmation
  • n

January 2019

23

  • www.srpprices.com
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  • www.savewithsrpbiz.com
  • (602) 236-8888