AZ / Residential / Latest month: Jul 2026

Electricity Rates in Arizona

CheapestArizona ranks 19th cheapest of 51Most expensive

In July 2026, homes in Arizona paid an average of 15.38¢ per kWh, the 19th cheapest of the 50 states and DC and 16.0% below the U.S. average of 18.31¢.

That price is roughly flat compared with a year earlier (up 0.3%).

Over the past 12 months the average home in Arizona used 1,052 kWh a month, for an average bill of $162 (U.S.: $157).

About electricity in Arizona

Natural gas is Arizona's largest source of electricity, but nuclear and solar each supply a sizable share. Public power utilities serve a large share of homes alongside the investor-owned companies.

  • natural gas 45%
  • nuclear 27%
  • solar 13%
  • coal 8%
  • hydropower 4%
  • wind 3%
Share of electricity generated in Arizona, 2025. Source: EIA.

The Arizona Corporation Commission is the state agency that regulates electric utilities in Arizona.

What drives electricity prices in Arizona

Arizona makes more electricity than it uses. Natural gas is the largest source, and the Palo Verde Generating Station west of Phoenix, which often produces more power than any other plant in the country, makes nuclear the second. Solar is a large and fast-growing share.

Who sets your rate depends on where you live. Arizona Public Service and Tucson Electric Power are investor-owned and regulated by the elected Arizona Corporation Commission. Salt River Project, a public power utility that serves much of the Phoenix area, sets its own prices through an elected board and is not regulated by the commission. There is no retail choice.

Prices are below the national average, but long, very hot summers mean Arizona homes use a lot of electricity for air conditioning. The large utilities offer time-of-use plans that charge more in the late afternoon and evening, when demand peaks.

Average electric bill in Arizona

Over the last 12 months the average Arizona home paid $162 a month for electricity, the 18th highest of the 50 states and DC. In July 2026 the average bill was $263 for 1,711 kWh.

Over the last 12 months, homes in Arizona used the most electricity in August, when air conditioning drives usage up: an average of 1,734 kWh and a $263 bill. The lightest month was February, at 636 kWh and $102.

What would I pay?

Energy charge at 15.38¢ per kWh. Delivery fees and taxes vary by utility.
Monthly usePer monthPer year
500 kWh × 15.38¢$76.90$923
1,000 kWh × 15.38¢typical$153.80$1,846
1,500 kWh × 15.38¢$230.70$2,768
2,000 kWh × 15.38¢$307.60$3,691

Estimate your own bill

At Arizona's average of 15.38¢/kWh: $161 a month, $1,938 a year.

Estimate of the energy charge only. Your utility's fixed fees, taxes and rate tiers will change the total. Use the full bill calculator.

Cost of electricity in Arizona by month

10¢12¢14¢16¢18¢Jan ’25Jul ’25Jan ’26Jul ’26
HomeBusiness¢ per kWh, monthly average

Businesses in Arizona paid 13.12¢ per kWh in July 2026 (the 24th cheapest for business power), and industrial users paid 9.35¢.

Electric companies in Arizona

19 utilities deliver electricity to homes in Arizona. The largest is Arizona Public Service Co, serving 1,287,097 homes.

UtilityHomes servedAvg. home rate
Arizona Public Service CoInvestor-owned · Full service1,287,09717.03¢
Salt River ProjectPublic power district · Full service1,074,09513.98¢
Tucson Electric Power CoInvestor-owned · Full service416,26814.88¢
UNS Electric, IncInvestor-owned · Full service95,28816.99¢
Trico Electric Cooperative IncCo-op · Full service53,72114.26¢
Sulphur Springs Valley E C IncCo-op · Full service46,39814.61¢
Mohave Electric Cooperative, Inc.Co-op · Full service41,74111.27¢
Navopache Electric Coop, IncCo-op · Full service40,79513.48¢
Electrical Dist No3 Pinal CountyPublic power district · Full service32,95114.02¢
Navajo Tribal Utility AuthorityState authority · Full service26,97816.54¢

"Avg. home rate" is what each utility's full-service residential customers paid on average in 2025 (revenue ÷ kWh sold). Delivery-only utilities have no full-service rate.

Can you choose your electricity supplier in Arizona?

No. Households in Arizona buy electricity from the utility that serves their address. Rates are set by the state utility commission (for investor-owned utilities) or by the utility's own board (for co-ops and city-owned utilities).

Arizona compared with neighboring states

Home electricity price and average bill
StatePrice per kWhAvg. monthly bill (12 mo.)
Nevada12.77¢$119
Utah13.12¢$104
Arizona15.38¢$162
New Mexico16.09¢$99
Colorado17.00¢$112
California33.61¢$161

Arizona electricity FAQ

What is the average electric bill in Arizona?

The average home in Arizona paid $162 a month over the last 12 months, using 1,052 kWh. That is the 18th highest of the 50 states and DC. In July 2026 alone, the average bill was $263.

How much does electricity cost per kWh in Arizona?

Homes paid an average of 15.38¢ per kWh in July 2026, 16.0% below the U.S. average of 18.31¢. Businesses paid 13.12¢ per kWh.

Which month has the highest electric bills in Arizona?

August, in the last 12 months of data: the average bill reached $263 (1,734 kWh), compared with $102 in February, the lowest month.

Can I choose my electricity provider in Arizona?

No. Households in Arizona buy electricity from the utility that serves their address, at rates set by regulators or the utility's board.

What are the largest electric companies in Arizona?

By number of residential customers in 2025: Arizona Public Service Co (1,287,097), Salt River Project (1,074,095), Tucson Electric Power Co (416,268).

Latest AZ electric rates, bills and usage: U.S. Energy Information Administration retail sales data (forms EIA-861M and EIA-861), latest month July 2026. Utilities and suppliers: EIA-861 (2025). Bills and usage are revenue and sales divided by customers. Last updated 2026-10-20.