SRP Proposes 8.8% Rate Increase

Electricity rate increases seem to be a part of modern life, and a good reason to invest in energy efficiency. This Biz journal article also mentions 2 proposals to help reduce demand:

One is its EZ-3 program, which offers a way to curb demand between 3 and 6 p.m. in the summer and 6 and 9 a.m. in the winter. It’s meant to make SRP’s time-of-use plans easier to understand. The catch is it will not be available to all customers, because it will require that homes and businesses have a smart meter installed. SRP hopes to have the backbone for those meters installed by the beginning of 2010.

The company also is courting businesses for its demand reduction program, in which companies are paid for dropping their consumption when SRP needs extra power. That program had its first test last month, Bonsall said.

SRPs web site explains that the EZ-3 rate is for customers who use more than 2,000 kwh during the summer months.

This AZ Republic article highlights SRPs explanation that it needs to raise rates in order to begin switching to a cleaner energy generation portfolio:

Right now, the utility buys extra power from Tucson Electric Power coal plants in the summer to meet peak demand.

Its contracts will soon expire, and it plans not to renew them, instead seeking out cleaner energy, like solar and wind.

SRP plans to buy power from Arizona's first wind farm, scheduled to begin making electricity this year.

The company also is buying geothermal and wind power from out of state.

Rate hikes, though painful, are a great way to encourage consumers to use less of something, in this case, electricity.  If SRP is able to accomplish this goal in addition to switching to cleaner renewable sources of power, I'm all for it.  Let's not jump on the "cap and tax" bandwagon without giving the feds low income weatherization programs a chance to offset these rate hikes(by improving household efficiency).  If you make too much to qualify for the program, you really shouldn't be too badly affected by an extra $12 on your electric bill.