Understanding Energy in Arizona
Arizona's desert climate drives the highest summer electricity bills in the nation — air conditioning runs 24/7 from June through September. The state leads the nation in solar installations, and solar with battery storage is increasingly cost-effective.
Arizona has a regulated electricity market. Your utility is the only electricity provider in your area, but rates are reviewed and approved by the state's public utility commission to ensure they are fair and reasonable.
The state's primary electric utilities include Arizona Public Service (APS), Salt River Project (SRP), Tucson Electric Power (TEP), UniSource Energy. Natural gas distribution is handled by Southwest Gas Corporation. Arizona's climate — hot desert, mild winters — is one of the main drivers of annual energy consumption patterns for households.
Electric Utilities in Arizona
The following utilities operate in Arizona. Your specific provider depends on your address.
- Arizona Public Service (APS)
- Salt River Project (SRP)
- Tucson Electric Power (TEP)
- UniSource Energy
Natural Gas Utilities in Arizona
- Southwest Gas Corporation
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Energy Assistance Programs in Arizona
Low-income households and those facing energy emergencies may qualify for these programs:
- Arizona LIHEAP
- APS Care Program
- SRP Limited-Income Program
- Southwest Gas Energy Assistance Fund
Energy Saving Tips for Arizona Residents
These tips are tailored to Arizona's climate — hot desert, mild winters:
- Invest in a high-SEER air conditioner (18+) — it pays back quickly in Arizona heat.
- Use radiant barrier insulation in your attic — it reflects up to 97% of radiant heat.
- Run your AC at 78°F when home and use ceiling fans to feel 4°F cooler.
- Pre-cool your home in the morning before peak rates kick in (typically 3-8 PM).
- Arizona's sun makes solar + battery storage one of the best investments in the US.
- Apply for APS's CARE, SRP's Limited-Income Program, or LIHEAP if eligible.
- Shade your AC condenser unit — it reduces its energy use by 5-10%.
Gas & Electricity Rates by City in Arizona
Select a city to view local utility rates, providers, and energy programs.
All Cities & Towns in Arizona
Gas and electricity information for all 94 cities and towns in Arizona. Jump to a letter or browse the full list.
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Frequently Asked Questions — Arizona Energy
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The average residential electricity rate in Arizona is approximately 15.23¢/kWh, compared to the national average of around 16¢/kWh. The average monthly electricity bill is $161.
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The average residential natural gas rate in Arizona is approximately $1.99/therm per therm. The typical monthly gas bill is $38, though this varies significantly by season.
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The primary electric utilities serving Arizona include Arizona Public Service (APS), Salt River Project (SRP), Tucson Electric Power (TEP). The right utility for you depends on your specific address.
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No — Arizona has a regulated electricity market, meaning your utility is determined by your location.
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Arizona residents may qualify for several assistance programs including Arizona LIHEAP, APS Care Program. Contact your utility or the state energy office for eligibility details.
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To reduce your energy bills in Arizona: schedule a free energy audit through your utility, check for state weatherization assistance, upgrade to LED lighting, and optimize your thermostat settings. Ask your utility about budget billing to smooth out seasonal costs.