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ElectricityRatePerKWh

Electricity Rate in Arizona (2026): 15.18c/kWh Average

The EIA residential electricity price in Arizona is 15.18 cents per kWh as of June 2026, 3.16c below the US average of 18.34c/kWh. The Arizona commercial rate is 12.47c/kWh and the industrial rate is 7.73c/kWh (EIA Electric Power Monthly, Table 5.6.A).

Residential Rate
15.18¢
per kWh
vs US Avg
-17%
3.16c below
Avg Monthly Bill
$156
1019 kWh
Provider Choice
No
Regulated monopoly

Arizona Electricity Rate: What You Need to Know

Arizona electricity averages 15.18 cents per kWh for residential customers as of June 2026, according to the EIA Electric Power Monthly. This is 3.16c below the US average of 18.34c/kWh. The average monthly bill for Arizona households is $156 based on typical usage of 1019 kWh.

Arizona electricity is served by three large utilities with very different structures: Arizona Public Service (APS), an investor-owned utility regulated by the Arizona Corporation Commission (ACC), serves most of the state including Phoenix and northern Arizona. Salt River Project (SRP), a quasi-public power district governed by elected ratepayers rather than the ACC, serves the eastern Phoenix metro (Mesa, Tempe, Scottsdale). Tucson Electric Power (TEP), an investor-owned subsidiary of UNS Energy, serves Tucson and southern Arizona. Arizona does not permit residential retail electricity choice - each address has a single regulated supplier. The primary rate driver is summer cooling load: Phoenix averages over 110 days per year above 100F and household consumption frequently exceeds 1,400 kWh/month in July and August, two to three times winter consumption. APS and SRP both operate aggressive Time-of-Use plans where peak summer afternoon rates run substantially higher than off-peak overnight rates - shifting cooling load to overnight pre-cooling with smart thermostats meaningfully reduces bills. Arizona is the third-largest US state for residential rooftop solar installed capacity, but the ACC's 2017 decision to end traditional net metering for new APS solar customers (replaced with an export rate well below the retail rate) extended typical solar payback periods from approximately 7 years to approximately 11-13 years for new installs. SRP customers have a separate solar export structure with a demand charge component. Net-metering rules and the appropriate solar economics depend strongly on which utility serves the property.

Generation mix: Natural gas 40%, nuclear 25%, solar 20%, coal 15%. The fuel mix is a primary driver of electricity rates - states with abundant hydro or nuclear tend to have lower rates, while states dependent on imported petroleum (Hawaii) or natural gas pay more.

Year-over-year change: Arizona rates fell 0.3% year-over-year as of June 2026. This compares to the US average increase of 5% over the same period.

Regulated: You Cannot Switch Electricity Suppliers

Arizona Public Service operates as the regulated utility in Arizona. Retail electricity choice is not available for residential customers. Options for reducing your bill include: time-of-use rate optimization, energy efficiency upgrades, and rooftop solar.

Your Arizona Electricity Bill Components

Energy charge (1019 kWh x 15.18c)$154.68
Fixed customer charge (estimated)~$10.00
Estimated monthly total$164.68
Arizona Rate by Sector - June 2026
Residential (US 18.34c)15.18c
Commercial (US 14.19c)12.47c
Industrial (US 9.17c)7.73c
Source: EIA Electric Power Monthly, Table 5.6.A.
Dominant Utility
Arizona Public Service
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Adjacent States
Nevada13.11c
Utah13.37c
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Electric Utilities in Arizona: 46 Listed (2024 EIA-861)

EIA's Form 861 census records 46 entities with 2024 retail electricity sales in Arizona: 21 distribution utilities filing the full form, 25 small utilities filing the short form (EIA-861S). By ownership: 19 political subdivision, 10 cooperative, 7 municipal, 5 investor owned, 3 federal, 2 state. The state-wide average realised residential price in 2024 was 14.91 cents per kWh across 3,032,728 residential customers and 40,434,931 MWh of sales; EIA's latest monthly figure is 15.18c (June 2026). The largest utility by residential accounts served (bundled plus delivery-only) is Arizona Public Service Co with 1,256,120 (16.45c per kWh, 38.5% of state residential sales by MWh). 18 of the 21 distribution utilities have a detail page; the rest are listed here only.

Distribution utilities (21), ranked by residential accounts served (bundled + delivery-only), 2024; residential price = bundled service where offered
#UtilityOwnershipRes. accountsResidentialCommercialCounties
1Arizona Public Service CoInvestor Owned1,256,12016.45c13.23c14
2Salt River ProjectPolitical Subdivision1,053,40713.46c10.76c3
3Tucson Electric Power CoInvestor Owned412,74715.63c15.58c2
4UNS Electric, IncInvestor Owned95,19116.02c15.23c2
5Trico Electric Cooperative IncCooperative52,45014.17c12.41c3
6Sulphur Springs Valley E C IncCooperative46,00813.49c10.74c4
7Mohave Electric Cooperative, Inc.Cooperative41,00911.20c10.76c3
8Navopache Electric Coop, Incalso NMCooperative40,07613.43c11.31c4
9Electrical Dist No3 Pinal CountyPolitical Subdivision32,00913.93c12.52c1
10Navajo Tribal Utility Authorityalso NM, UTState27,01416.63c17.42c3
11City of Mesa (AZ)Municipal15,33116.93c14.01c1
12USBIA-San Carlos ProjectFederal11,43219.49c17.93c5
13Electrical Dist No2 Pinal CountyPolitical Subdivision5,21813.26c8.46c1
14Dixie Escalante R E A, Incalso UTCooperative2,7909.60c8.97c1
15Gila River Indian Utility Authority (GRICUA)Cooperative2,68214.25c12.54c2
16Morenci Water and ElectricInvestor Owned2,23211.23c10.67c1
17Garkane Energy Coop, Incalso UTCooperative1,40111.51c10.60c2
18Ajo Improvement CoInvestor Owned82112.56c11.44c1
19Ak-Chin Electric Utility AuthorityState31912.95c8.84c1
20Electrical Dist No8 MaricopaPolitical Subdivision0n/an/a1
21WAPA-- Western Area Power Administrationalso CA, CO, KS, MN, MT, ND, NE, NM, NV, SD, UT, WYFederal0n/a2.65c12
Small utilities filing the EIA-861S short form (25): totals across all sectors, no residential split+
UtilityOwnershipCustomers (all)Avg price (all)Counties
Graham County Electric Coop IncCooperative8,50412.27c1
City of Safford (AZ)Municipal6,16213.17c1
Page Utility EnterprisesMunicipal4,58010.15c1
Wellton-Mohawk Irr & Drain DistPolitical Subdivision4,25414.72c1
Tohono O'Odham Utility AuthorityPolitical Subdivision4,02012.52c3
Electrical Dist No4 Pinal CountyPolitical Subdivision3,2747.73c1
Town of Thatcher- (AZ)Municipal3,04012.40c1
City of Williams - AZMunicipal2,30413.18c1
Duncan Valley Elec Coop, IncCooperative2,28414.45c2
Hohokam Irr & Drain DistPolitical Subdivision2,07113.82c1
Colorado River Indian Irr ProjFederal1,86611.45c1
Town of WickenburgMunicipal1,4999.47c1
City of Fredonia (AZ)Municipal8329.25c1
Aha Macav Power ServicePolitical Subdivision64511.09c1
Columbus Electric Coop, IncCooperative52214.57c1
Roosevelt Irrigation DistrictPolitical Subdivision2478.62c-
McMullen Valley Water C&D DistPolitical Subdivision2037.80c1
Ocotillo Water Conserv. Dist.Political Subdivision16910.55c1
Electrical Dist No6 Pinal CountyPolitical Subdivision1397.89c-
Buckeye Water C&D DistrictPolitical Subdivision12212.48c1
Harquahala Valley Pwr DistrictPolitical Subdivision1108.39c1
Maricopa County M W C Dist #1Political Subdivision10210.38c1
Electrical Dist No7 MaricopaPolitical Subdivision845.72c-
Tonopah Irrigation DistrictPolitical Subdivision589.67c-
Aguila Irrigation DistrictPolitical Subdivision578.25c-
Source and method

Source: U.S. Energy Information Administration, Form EIA-861 Annual, 2024 final data (public domain), retrieved 28 August 2026; prices are average realised revenue per kWh, not tariffs. Final 2024 file f8612024.zip (released 3 December 2025) from the EIA-861 detailed data files. Preliminary 2025 figures come from the early-release file f8612025er.zip (4 August 2026), which EIA has not yet validated; they are labelled as such wherever shown and never mixed into a final figure.

Arizona Electricity: Frequently Asked Questions

What is the electricity rate in Arizona in 2026?+
The average residential electricity rate in Arizona is 15.18 cents per kWh as of June 2026, according to the EIA Electric Power Monthly. This is 3.16c below the US average of 18.34c/kWh (-17%). The average monthly electricity bill in Arizona is approximately $156 based on 1019 kWh typical monthly usage.
What is the commercial electricity rate in Arizona?+
The average commercial electricity rate in Arizona is 12.47 cents per kWh as of June 2026, according to the EIA Electric Power Monthly (Table 5.6.A). That compares with the US commercial average of 14.19c/kWh. Commercial rates apply to businesses, offices, schools, and retail. They are usually lower per kWh than residential rates, but a commercial bill can still be much larger because of higher volume and demand charges.
What is the industrial electricity rate in Arizona?+
The average industrial electricity rate in Arizona is 7.73 cents per kWh as of June 2026, according to the EIA Electric Power Monthly (Table 5.6.A), versus a US industrial average of 9.17c/kWh. Industrial customers such as factories, manufacturers, and large facilities pay the lowest per-kWh price of the three EIA sectors because they buy power at high volume, often at higher voltage, under demand-based rate structures.
Can I switch electricity providers in Arizona?+
No - Arizona operates a regulated electricity market. Arizona Public Service serves as the regulated monopoly utility. Customers cannot switch electricity generation suppliers. Options for reducing bills include time-of-use rate optimization (where available), energy efficiency upgrades, and solar installation.
What is the average monthly electricity bill in Arizona?+
The average Arizona household uses approximately 1019 kWh per month. At 15.18c/kWh plus approximately $10 in fixed charges, the average monthly bill is $156. This varies by season (higher in summer for cooling-dominant states like Florida, higher in winter for heating-dominant states).
What is the primary electricity source in Arizona?+
Arizona's generation mix is primarily Natural gas 40%, nuclear 25%, solar 20%, coal 15%. This fuel mix is a key factor in the state's electricity rate - states relying on hydro or nuclear typically have lower rates, while states heavily dependent on natural gas or petroleum (like Hawaii) face higher costs.
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