Thousands of Arizona Public Service customers may be eligible for reimbursement from the Salt River Project thanks to a nearly century-old program.
The Annual Shareholder Reimbursement Program dates back to 1928. The Salt River Valley Water Users’ Association was seeking funding at the time for the Stewart Mountain Dam. Arizona Public Service’s predecessor was the intended customer for the hydroelectric power generated by the dam — but the utility wanted something in return.
In exchange for buying the power from Stewart Mountain, the utility took some of SRP’s territory around metro Phoenix. The areas still receive irrigation services from SRP, but receive power from APS.
SRP agreed to reimburse those residents who still lived in the area if their
bill was “substantially” higher under APS than it would have been under SRP. That threshold for compensation was eventually set at 15% higher.
Jason Riggs, an SRP director and assistant treasurer, said that the 15% trigger has usually been met outside the early years of the program.
Roughly 100,000 customers live in the areas today, although not all are eligible for the program, Riggs said. Last year, the utility sent out close to 64,000 applications to residents who were potentially eligible. It received a little over 8,000 applications, and paid out more than $3.1 million to roughly 6,800 people who met all the eligibility requirements ― more than $450 per applicant, on average.
Applicants have to own their land and occupy the residence. Part-time occupants and homeowners with a relative living on the property rent-free may also be able to recoup some costs.
Eligible program members can make up the difference between their 2025 APS bill and what they would have paid to SRP, minus a $50 administrative fee. Landowners can verify their eligibility at https://www.srpnet.com/about/governance-leadership/water-shareholders/compensation-program#1. Applications are due Sept. 16.
Riggs said notifying potentially eligible landowners and confirming they qualify is a “rigorous” process.
“It’s always a fine line to make sure we’re paying folks who are eligible while ensuring folks who aren’t are not receiving reimbursement,” Riggs said.
Alaina Mencinger covers energy, tech and utilities for The Arizona Republic. Reach her at Alaina.Mencinger@usatodayco.com.
This article originally appeared on Arizona Republic: Some APS customers could get hundreds back from SRP. Are you one?
