StateRates

Arizona electricity rates

As of May 2026, the average residential electricity rate in Arizona is 15.23 cents per kilowatt-hour, 17.4% below the U.S. average of 18.44¢. That is the 32nd highest rate of the 50 states and the District of Columbia.

May 2026 · Residential average · EIA-861M
15.23¢ per kilowatt-hour
Year over year
▼ -3.1% from 15.71¢ in May 2025
Vs. U.S. average
-17.4% U.S. average 18.44¢
National rank
#32 of 51 · #20 cheapest
Supply market
Western Interconnection Regulated monopoly

Why Arizona pays what it pays

The Palo Verde Generating Station is the largest power plant in the United States by output, and it sits west of Phoenix. Its energy is low-cost, carbon-free and long since built, and it supplies a large share of Arizona's electricity along with power sold into California and elsewhere.

Arizona has also added utility-scale solar rapidly, which is well matched to a load shape dominated by afternoon air conditioning, and increasingly battery storage to push that solar output into the evening peak.

The state's population growth adds customers faster than most, which spreads fixed costs across a widening base. It is one of the more underrated reasons fast-growing Sun Belt states have held rates relatively well.

Where Arizona power comes from

Arizona generated 117 TWh in 2025, the 12th largest output of any state. Natural gas supplied 45.1% of it. Renewables accounted for 20.5%, against 23.8% nationally, which ranks Arizona #23 of 51.

Net generation by fuel, 2025
  • Natural gas 53 TWh
  • Nuclear 31 TWh
  • Solar 16 TWh
  • Coal 9 TWh
  • Hydroelectric 5 TWh
  • Wind 3 TWh

Source: U.S. Energy Information Administration, Electric Power Operational Data, net generation, all sectors. Net generation across all sectors. Nuclear counts as carbon-free but not renewable, so the two shares differ.

How Arizona compares

Arizona ranks #32 of 51 jurisdictions by residential price, making it the 20th cheapest. Within the Mountain division, 6 of 7 neighbouring states are cheaper.

Mountain division, May 2026
State ¢/kWh YoY Rank
Idaho 12.35 +4.0% #51
Utah 12.96 +2.9% #50
Nevada 13.60 +2.3% #47
New Mexico 14.12 -2.6% #44
Montana 14.67 +13.9% #39
Wyoming 14.80 +7.1% #38
Arizona 15.23 -3.1% #32
Colorado 16.16 +3.7% #28

Source: U.S. Energy Information Administration, Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State. Data period May 2026. Retrieved 2026-08-19.

What Arizona households actually pay

Average monthly bill $160 +3.1% vs the U.S. average of $155
Average monthly usage 1,041 kWh · U.S. average 871
Bill rank #19 of 51 · rate rank #32
Bill year over year -0.6% from $161 the year before

Estimate your Arizona bill

Multiply your own usage by the May 2026 state average. Enter the kilowatt-hours from your last statement. This is a supply-and-delivery blended average, not a utility quote.

Estimated monthly bill $0
At the U.S. average $0

Rate used: …. U.S. average 18.44¢/kWh, May 2026. Source: U.S. Energy Information Administration, Electric Power Monthly Table 5.6.A.

Heating in Arizona: gas, heat pump or resistance

Residential natural gas in Arizona averaged $20.47 per thousand cubic feet in 2024, about $1.97 per therm, against a national average of $14.50. Put on the same scale as the state's electricity rate, the cost of delivering one million BTU of heat works out as follows.

Gas furnace $21.93 at 90% efficiency
Heat pump $14.88 at a seasonal COP of 3
Electric resistance $44.63 baseboard, wall or electric furnace

In Arizona, a heat pump is cheaper to run than a gas furnace by about $7.05 per million BTU at these assumptions. Over a 60 million BTU heating season that is roughly $423, before counting the cooling a heat pump also provides.

Gas price: U.S. Energy Information Administration, Natural Gas Prices, price delivered to residential consumers, 2024. Assumptions are adjustable in the heating cost guide, and every state is compared on the gas price page.

What each Arizona utility charges

The statewide average hides a wide spread. Across the 22 Arizona utilities reporting to the EIA, rates run from 9.60¢ at Dixie Escalante R E A, Inc to 19.49¢ at USBIA-San Carlos Project . Together they serve 3.2 million residential customers.

Arizona utilities by size, 2024
Utility ¢/kWh Bill kWh Customers
Arizona Public Service Co 16.45 $170 1,034 1.3 million
Salt River Project 13.46 $163 1,211 1.1 million
Tucson Electric Power Co 15.63 $125 800 412,747
UNS Electric, Inc 16.02 $148 924 95,191
Trico Electric Cooperative Inc 14.17 $133 942 52,450
Sulphur Springs Valley E C Inc 13.49 $100 742 46,008
Mohave Electric Cooperative, Inc. 11.20 $110 987 41,009
Navopache Electric Coop, Inc 13.43 $82 612 40,076
Sunrun Inc. 13.66 $151 1,108 35,281
Electrical Dist No3 Pinal County 13.93 $165 1,182 32,009
Navajo Tribal Utility Authority 16.63 $81 490 27,014
Tesla Inc. 12.75 $116 908 24,451
City of Mesa 16.93 $146 861 15,331
USBIA-San Carlos Project 19.49 $180 922 11,432
SunPower Capital, LLC 15.96 $133 835 8,153
Electrical Dist No2 Pinal County 13.26 $141 1,063 5,218
Spruce Finance 10.67 $101 946 3,620
Sunnova 17.99 $188 1,046 2,935
Dixie Escalante R E A, Inc 9.60 $103 1,077 2,790
Gila River Indian Utility Authority (GRICUA) 14.25 $208 1,463 2,682
Morenci Water and Electric 11.23 $88 787 2,232
Garkane Energy Coop, Inc 11.51 $186 1,620 1,401

Source: U.S. Energy Information Administration, Form EIA-861 annual electric power industry report, 2024.

Who sells electricity in Arizona

Arizona Public Service serves much of the state. Salt River Project, a public power utility, serves a large part of the Phoenix metropolitan area and is governed by an elected board rather than the state commission. Tucson Electric Power serves Tucson, and co-operatives serve rural areas.

There is no residential retail choice. The Arizona Corporation Commission, whose five members are elected statewide, regulates the investor-owned utilities. SRP sets its own rates.

Arizona sits in The Mountain West. Cheap legacy coal and abundant sun, with costs decided by how fast each state is retiring one and building the other. Read the regional analysis.

What you can actually do about it

Arizona has the most complicated residential rate menu of any state. APS and SRP both offer multiple time-of-use plans, demand-charge plans and flat plans, and the difference between the best and worst choice for a given household is large. Both publish rate comparison tools using your own historical usage. Use them.

Demand-charge residential plans can be excellent for households that never run several large appliances at once, and punishing for those that do.

Closest states by price

These jurisdictions charge within a fraction of a cent of Arizona, which is useful if you are comparing a move or a multi-state operating cost.

Arizona electricity rates: common questions

What is the average electricity rate in Arizona?

The average residential electricity rate in Arizona is 15.23 cents per kilowatt-hour as of May 2026, according to the U.S. Energy Information Administration. That is -17.4% relative to the national average of 18.44¢/kWh.

How much is the average monthly electric bill in Arizona?

The average Arizona household paid $160 a month across the twelve months to May 2026, using an average of 1,041 kWh. That is +3.1% against the U.S. average bill of $155, and it ranks 19th highest of the 51 jurisdictions. Your own bill depends on the size of your home, your heating and cooling equipment and your rate schedule.

Why is the Arizona bill ranking different from its rate ranking?

A bill is the rate multiplied by usage, and usage varies between states more than price does. Arizona ranks #32 of 51 on price but 19th on the actual bill, because households there use about 1,041 kWh a month against a national average of 871. Climate and heating fuel drive most of that difference.

Have electricity rates in Arizona gone up?

Arizona rates fell 3.1% over the year to May 2026, from 15.71¢ in May 2025 to 15.23¢.

Can I choose my electricity supplier in Arizona?

Regulated monopoly. Arizona households buy both supply and delivery from their local regulated utility or co-operative; there is no competitive residential supplier market.