Arizona residential electricity rates

Analyst note

The Arizona residential price sat above the U.S. average in 0 of 10 years; the gap was -0.52 ¢ in 2015 and -1.57 ¢ in 2024. In the 2024 ranking Arizona sits between Colorado (14.92 ¢) one place above and Indiana (14.77 ¢) one place below; the top of the list is 27.95 ¢ away and the bottom 3.40 ¢. Arizona was 24th in 2015 with 12.13 ¢ and is 26th now; a fall in the table. Arizona residential prices rose in 7 of 9 years. The largest rise was +7.7% in 2023, and the largest fall -2.7% in 2019. The Arizona price peaked at 14.91 ¢ in 2024 and bottomed at 12.13 ¢ in 2015; 2024 is the peak and +22.9% from the low. Compounded, that is +2.32% a year in Arizona, -0.66 points against the U.S. Arizona buys 2.73% of all U.S. residential electricity with 2.19% of the accounts, so the average Arizona account uses 1.25 times the national average.

A middle price: 14.91 ¢/kWh for Arizona residential accounts, rank 26 of 51, -9.5% against the U.S. Arizona: +22.9% over nine years, or +2.3% a year, trailing the national +30.3% by 7.4 points; 2023 was the biggest single move (+7.7%) and 2024 the high.

Last year's change in Arizona was +6.3% and still rising. Against the commercial price of 12.23 ¢ the gap is 2.68 ¢. Residential sales are 44.5% of Arizona electricity sold, and an average Arizona account used 1,075 kWh a month, an implied bill near $160.

Counting revenue instead of kWh, Arizona residential accounts bring in 52.1% of Arizona sector revenue on 44.5% of the kWh, a premium of 7.6 points that comes from the price level: 14.91 ¢ here against 12.23 ¢ for commercial and 7.90 ¢ for industrial accounts. The average Arizona residential account uses 1,075 kWh a month, 8 of 51 among states on that measure; a commercial account uses 8.03 times as much and a industrial account 146.72 times. Residential accounts are 89.80% of the 3,490,711 accounts in Arizona.