SRP to vote on proposed rate hike

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By Catherine Holland By Catherine Holland

TEMPE, Ariz. -- Salt River Project will vote Thursday morning on a proposed rate increase that has been a point of contention with customers.

The proposed rate hike has been an ongoing battle between SRP and its customers.

SRP is the state's second-largest power company and wants to raise rates 3.9 percent, or about $4.50 a month for the average SRP customer.

[READ: SRP customers protest proposed rate hike (Feb. 9, 2015)]

If a rate hike is approved, it would affect all SRP customers and would hit solar panel users especially hard.

Customers with solar panels on their homes could pay about $50 more a month.

Current customers with solar panels wouldn't be impacted until 10 years from now, but new customers installing solar panels would pay the increase from the start.

[READ: Solar customers could get hit with big rate hike (Jan. 9, 2015]

SRP officials argue the hike is needed to make up $110 million to help pay off and maintain already purchased coal and gas plants.