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.
- 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.
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.
| 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 a bill looks like at this rate
The figures below apply the May 2026 Arizona average to four usage levels. They are arithmetic, not quotes. A real bill also carries fixed customer charges, taxes and any rider specific to your utility.
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.
Rate used: …. U.S. average 18.44¢/kWh, May 2026. Source: U.S. Energy Information Administration, Electric Power Monthly Table 5.6.A.
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.
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 a typical monthly electric bill in Arizona?
At the May 2026 average rate of 15.23¢/kWh, a household using 900 kWh a month would pay about $137, and one using 1,500 kWh about $228. Actual bills vary with usage, rate schedule, fixed customer charges and taxes.
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.
Where does this Arizona rate figure come from?
It is the residential-sector average revenue per kilowatt-hour reported by utilities to the U.S. Energy Information Administration on Form EIA-861M and published in the Electric Power Monthly, Table 5.6.A. It blends supply and delivery across every residential customer in the state, so it is a statewide average rather than a quote for any individual household.