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 or, C , Cor orpor orate Prici cing Jan anuary ry 2019 2019
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) 2 January 2019
SRP’s P Prici cing P Princi ciples • 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) 3 January 2019
Curren Cur ent & & Proposed P d Prices es 10.10 10.04 10.00 -1.5% Overall Retail Price 9.89 Cents per kWh 9.90 9.80 -2.2% 9.68 9.70 9.60 9.50 FY 2015 FY 2019 Proposed FY 2020 *Proposed prices for FY20 would be 3.7% below those approved for FY15 4 January 2019
Proposal al 0.0% -0.5% Change in Overall Prices -1.0% -1.5% +1.7% -2.0% -2.2% -2.5% -3.0% -3.5% -4.0% -3.9% -4.5% Fuel Decrease Base Increase Overall Change *Percentages based on overall bill 5 January 2019
Proposed A Averag age A Adjustment Varies b by Cl Clas ass 0.0% -0.5% -1.0% -1.5% -1.3% -2.0% -2.2% -2.5% -2.4% -3.0% -3.5% -4.0% -3.8% -4.5% Residential Commercial Industrial 6 January 2019
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 7 January 2019
Price Co Comparis rison Over erall P Price ( e (Cen ents p per k kWh) Southern California 16.57 Arizona* 12.08 New Mexico 10.70 Salt River Project (Current) 9.89 Nevada 9.68 Salt River Project (Proposed) 9.68 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 8 January 2019
SRP 2 P 2035 S Sustainability G Goals: Focu cus A Areas Customer & Supply Carbon Grid Water Employee Chain & Emissions Modernization Engagement & Resiliency Waste Community Reductions Reduction Involvement 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 7 th at www.srpnet.com/2035 9 January 2019
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 10 January 2019
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 11 January 2019
Proposed A Averag age Residential C Customer B Bill Impact ct Average Monthly Average Monthly Usage (kWh) Impact Total Impact Basic 1,074 -$1.12 -0.9% E-23 M-Power 1,037 -$3.75 -2.9% E-24 EZ-3 1,251 -$1.53 -1.1% E-21, E-22, E-25 Time-of-Use 1,593 -$2.27 -1.3% E-26 Customer Generation 587 -$1.03 -0.9% E-27 12 January 2019
New T Time me-of of-Use S Summe mmer O On-Peak H Hours Impacted Price Plans TOU E-26 Customer Generation E-27 TOU EV E-29 Residential Demand E-27P Current Proposed 13 January 2019
EZ-3 P Program End Pilot, Standard Price Plan End Pilot Make Standard Price Plan 14 January 2019
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 12.00 Cents per kWh 10.00 8.00 6.00 4.00 2.00 0.00 6 Month Summer Avg Winter E-24 Proposed E-23 Proposed *Average seasonal kWh prices, does not include Monthly Service Charge 15 January 2019
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) 16 January 2019
Before S Solar ( (Illustrative) 17 January 2019
After S Sola lar, N Net Billin illing ( (Illu llustrative) 18 January 2019
After S Sola lar, D Deliv livered/Export Billin illing ( (Illu llustrative) 19 January 2019
New D Distributed G Generation P Price ce Pl Plans Monthly Service kW Price Excess kWh Price Plan kWh Prices Charge Component Credit Tiered, On-Peak Customer Generation On/Off-Peak Unchanged Monthly N/A Demand E-27 (Net kWh) Maximum Flat, Average of Average Demand Equal to E-27 Equal to E-27 Daily On-Peak N/A E-15 (Net kWh) Maximums Equal to E-26 Non-Demand TOU Export Equal to E-27 N/A TOU $0.0281/kWh E-13 (Delivered kWh) Equal to E-29 TOU Export for EVs Equal to E-27 N/A TOU EV $0.0281/kWh E-14 (Delivered kWh) 20 January 2019
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) 21 January 2019
Calendar ar December 20 th Open Information Center/Mail Public Notice January 22 nd and 24 th Customer/Stakeholder Meetings 1 st Board Meeting February 18 th 2 nd Board Meeting February 26 th 3 rd Board Meeting March 4 th 4 th Board Meeting March 11 th March 15 th Deadline to Submit Written Comments 5 th Board Meeting (Decision Meeting) March 25 th Implement Price Plans May Billing Cycle 22 January 2019
Price Process I Infor ormation on • www.srpprices.com • www.savewithsrp.com • www.savewithsrpbiz.com • (602) 236-8888 23 January 2019
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