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What’s The Difference Between APS and SRP?

7/13/2019

11 Comments

 
APS (Arizona Public Service) and SRP (Salt River Project) are the two major energy providers in Arizona. Even though they both provide the same service, APS and SRP have some major differences that play a role in deciding where some customers choose to live. APS has a larger service area and is the larger energy provider, covering most of the Phoenix area. SRP’s service area is located more in the East Valley with some exceptions in Glendale, Laveen, Ahwatukee and south Scottsdale.

​The Green ID energy audit steps will be the same for an APS customer or an SRP customer. We still conduct a blower door test to measure air leakage and duct leakage, use a thermal camera to scan the home for insulation defects, conduct a thorough attic insulation inspection and check the heating and cooling system. But an SRP energy audit differs from an APS energy audit in the way we approach energy savings. APS and SRP have important differences that have implications in how much energy our customers save and what temperature strategies we recommend. We review the major differences between these two energy providers in Arizona and how you can take advantage of savings.

Here Are Some Of The Major Differences Between APS And SRP

Peak Hours and Rate Plans

​APS has peak hours between 3-8 pm. SRP’s peak hours are 2-8 pm. Both utilities recently implemented these major changes in their peak hours. APS changed their peak hours along with a major change in their rate plans with an average 33% increase. SRP changed only their peak hours and kept their rate plans the same. This is part of a national change all utilities are making to more demand-based rate plans, penalizing users for using energy when they need it the most.

Demand Charges 

​APS peak hours penalize homeowners much more than SRP for using large amounts of energy by charging a $15 per day demand charge on top of a peak hour rate for almost all of their rate plans. SRP has a demand charge but only for solar customers and the E-27 pilot rate plan. I wouldn’t be surprised if SRP changes all their rate plans to a demand-based charge in the near future.

Rebates

​APS essentially offers only a duct-sealing rebate. SRP offers many other rebates including insulation, shade screens, high-efficiency air conditioning systems and pool pumps. APS technically has air sealing, HVAC and insulation rebates but they have made these rebates difficult to achieve.

Energy Rates

​Recently, APS implemented significantly higher energy rates for all customers. These rate increases came out to be about 33% higher on average. In the past, APS increased their energy rates only by 6% year to year. SRP has not yet implemented a huge jump in increasing their energy rates but it’s likely coming.

Ownership & Politics

​APS is owned by Pinnacle West Corporation, a publicly traded, for-profit company. SRP is a non-profit utility company. Both companies are essentially monopolies but APS is much more profit-driven and goes to extremes to ensure its profits. APS pours dark money into politics to ensure their candidates are elected to the Arizona Corporation Commission, a group that is supposed to look out for the Arizona consumer but instead votes for APS’s interest. APS also sponsors many events for our State Governments. APS does provide private funding for weatherization programs to help low-income families pay for efficiency upgrades to their home. SRP is known for better customer service and communication but they still tend to follow APS rate increases and time of use plans.

What Can You Do?

​In general APS has higher energy rates than SRP, less efficiency rebates and they are less consumer friendly. Whether you are an APS vs an SRP customer, your decision to save energy in your home is still an important one. While APS may not have the same financial incentives in the way of rebates, our energy audits are a gateway to saving you money overall. Saving money also means putting less of a demand on your energy provider and less money in their pocket. Unless you’re in the process of buying a new home, you can’t pick the energy provider in your neighborhood but you CAN take steps to being more energy efficient. Green ID’s extensive experience with both providers allow us to make the best recommendations on savings, regardless of whether you are serviced by APS or SRP. 
11 Comments
Ian
2/29/2020 04:59:26 pm

Great job explaining this difference. Many people in AZ don’t understand this before purchasing a house and it makes a tremendous difference. This is also why it is far more lucrative for an APS customer to get solar installed on their home than and SRP customer. More people need to know about the “dark money” lobbying APS does to get their people elected into positions that benefit them and their rate increases. AZ Corp Commission is voting in July to raise rates again in order to roll some of their expired fees into the base rate for their customers. This is going to generate an additional $184 million in NET (not gross) revenue. Absolutely ridiculous.

Reply
Làurie
3/2/2020 08:21:05 am

I thought APS was under new manàgement and would make things better. I should have known better. APS has always been money hungry, and don't càre about the customer. Why because they know they've got us pinned down and there's nothing we can do about it it's like a monopoly they have us and they know it. we can't just say we want SRP because I've called SRP and tried to switch over but you can't APS has you sucked in. If you want electric you have to go APS if you're in
this area. So in layman's terms we are screwed.
I've been in the same plàce for over 20 years. and Everytime we have an outage it takes for ever to get repaired. Unless SRP comes to help, and when they do you know right away. Because SRP cares. They set up a place to get water to help cool down. .so you don't have to open your frig. They get things fixed right away. People should be able to pick the company they want to use. If that were to hàppen APS wouldn't hàve any costumers. I would put money on it 99.8 would pick SRP. Much better company. So if you can help it Do Not Move Into APSs area.

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Jim
3/9/2020 04:12:19 pm

I was about to make an offer on a home that is in APS area. I decided not now based on this comments not to do that. Thank you very much to all for your helpful information.

Reply
Lee
7/3/2020 10:15:51 am

I love this APS hit job. This article does not tell all the facts. It's just an article to bash APS. Does APS have higher rates? Yes they do. Are SRP and APS the same? No! APS in an IOU(investor owned utility) and SRP is a nonprofit. SRP is exempt from paying many taxes that APS has to. SRP also has access to cheaper power for fed hydro before APS does due to their statue's. As a business, APS needs to recover these costs. Also, since they are a IOU they are legally required to earn a profit for their shareholders. All rates for APS are approved by the ACC. SRP does not have to go through the ACC. Their board of directors votes on any increase in rates. So in essence, they can raise rates however high they want. I hate when people dont put out all the facts or cherry pick the information. If you want a lower bill use less electricity, limit your on peak power and vote.

Reply
David
8/1/2020 11:41:33 am

Thanks for posting Lee, are you associated with APS in any way?

Yes, of course every business should make a profit. I'm not saying they shouldn't and I have no problem with any business that does be it a small family owned business or a publicly traded company. I find it odd that you are defending APS in that way though, it's like you are affiliated with APS.

Many of their board members were supported by APS to get elected so in essence, they vote how APS wants them to vote on certain issues.

You are also cherry picking information. Remember when APS promised it's customers $0.05 a kWh electricity when they wanted to build Palo Verde Nuclear Power Plant? I think we are still waiting for that to happen and nuclear power is also one the cheapest energy sources.

Both utilities have infrastructure to build and maintain. This article was to answer common questions we get. If I wanted to bash APS I would have brought up more issues like why would they remove their shade screen rebate when shade screens are the most cost effective way at reducing a homeowners energy bills. Why did APS remove their solar rebates? Why is APS signing confidential agreements with solar installers across the valley? Why did APS make it more difficult for homeowners to get an insulation rebate?

I am sick of APS representatives bashing small businesses that don't put APS in a good light. I hope you are comfortable in a home at 84 degrees in the middle of the summer.

Reply
David
8/2/2020 04:15:54 pm

Sources
https://www.azcentral.com/story/money/business/energy/2019/03/29/arizona-public-service-admits-spending-millions-2014-corporation-commission-races/3317121002/

https://www.energyandpolicy.org/utility-corruption/

https://www.nytimes.com/2020/08/02/opinion/utility-corruption-energy.html?action=click&module=Opinion&pgtype=Homepage

Brea Devlin
8/21/2020 04:16:53 pm

Amen. Thank you for responding as I did as well to the gentleman trying to hold APS in a good light. Can't be done. You bring up some good points. I also included in mine the several deaths related to APS shutting off customers power. I don't think we will here from the gentleman above or any higher executives. They are probably to busy filling out paperwork to submit for another rate increase.

Brea Devlin
8/21/2020 04:10:13 pm

Your argument is laughable. A company is in business to make money. This is pure greed. Why does 6 of APS executives make a million plus each a year? We are all paying for these meager wages. APS provides approx 1.2 million in Az with power. This is clearly not enough so we then have to supply California as well. You become bigger when you keep biting off more and more. I hope these executives that make around 80,000 a month were the ones making the executive decision to cut off power because that elderly customer was short 50.00 dollars. I hope they did not have a set back or go without because of that stingy customer. You showed her by just turning off her power. Like they say that is why you get paid the big bucks. No matter how you try to justify your company, you can't. On a moral issue don't know how you can sleep with contributing to customers deaths. You mention APS can recover costs and make a profit. I would say a profit has been made 10 folds and then some. SRP does not need to go through the ACC like APS yet SRP does not seem to have a rate hike every year. Didn't APS pay millions to keep 2 out of 3 members of the ACC to be re-elected to serve on the board??? hmm I hate when you tell a story and cherry pick what you want. Just as you did. Unfortunately, you can't polish a turd.

Reply
John
5/17/2022 05:07:05 pm

So all that being said about APS customers benefitting from going solar, would an SRP customer also benefit from going solar if his average bill was $133 every month? After looking into solar my initial findings are that SRPs rates are lower but APS pays much more $0.09 KWh vs $0.028 kWh from SRP. Any SRP customers have any feedback after going solar? Who'd you use or recommend? TIA

Reply
Christine P
7/1/2022 08:10:54 am

Both responses to the APS exec were spot on. Well done.

Reply
Steven
7/16/2022 12:50:08 am

I'm wondering if APS is increases their rates so that they can continue to make the same amount or more of course due to the decrease in profits from what they are loosing as more people are saving by getting solar.

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