Phoenix Electricity Rates
ElectricChoice Energy Research · Updated
- The average residential electricity rate in Phoenix is 14.81¢ per kWh, roughly 19% below the national average.
- A typical Phoenix home pays about $165/month for electricity, with summer bills routinely reaching $300–$400+.
- APS has filed for a 9.8% rate increase with the ACC for 2027. Hearings are scheduled for Q4 2026.
How Time-of-Use Pricing Works
Phoenix residents are served by Arizona Public Service (APS) under mandatory time-of-use pricing. All residential customers are billed on a TOU plan — the weighted average rate across peak, off-peak, and super off-peak periods is ~14.81¢/kWh, combining a fixed $10 service charge, time-varying energy charges, and approved riders.
| 14.81¢ | Effective Residential Rate | Weighted average across APS TOU-E time periods including peak, off-peak, and super off-peak. |
| −19% | Below U.S. National Average | Phoenix residents pay approximately 19% less than the current U.S. benchmark of 18.34¢/kWh. |
| ~$165 | Average Monthly Bill | Typical monthly expenditure for a home using 1,100 kWh with desert summer AC. |
| 1.3M | Customers Served | By APS across central and northern Arizona including most of Phoenix, Flagstaff, and Prescott. |
APS Saver Choice — TOU-E Rate Breakdown
Effective · Authorized under ACC Docket No. E-01345A-22-0144
| Bill Component | Description | Rate / Cost |
|---|---|---|
| Service Charge | Fixed monthly grid connection fee | $10.00 / month |
| Base Energy Charge | Weighted TOU generation & transmission | 8.562¢ / kWh |
| Riders & Adjustments | Power Supply Adj + RES + DSM + LFCR + System Benefits | ~3.25¢ / kWh |
| Effective All-in Rate | Blended cost for typical 1,000 kWh home | ~14.81¢ / kWh |
Mandatory Time-of-Use
Unlike flat-rate utilities, APS requires every customer to use TOU pricing. Summer on-peak hours (4–7 PM weekdays) cost up to 2.8× more than off-peak. Shifting AC pre-cooling to morning or running appliances at night significantly reduces bills.
APS vs. SRP
Phoenix metro is split between two utilities: APS (investor-owned, ACC-regulated) covers central and north Phoenix, while Salt River Project (public utility, board-elected) covers east Valley cities like Tempe and Mesa. They have different rates and different regulators.
Super Off-Peak Discount
APS offers a super off-peak window (10 AM–3 PM) where excess solar drives rates to the floor at ~5.2¢/kWh. EV owners and pool pump operators can save substantially by scheduling heavy loads during this solar surplus window.
Rate Plans & TOU Schedules
APS requires all residential customers to be on a time-of-use (TOU) rate plan — your cost per kWh changes based on the time of day and season. Off-peak rates average 8.6¢/kWh while summer on-peak (4–7 PM, Mon–Fri) can reach 24.4¢/kWh.
Available Residential Rate Schedules
All schedules effective May 1, 2026 · ACC Docket No. E-01345A-22-0144
| Rate Schedule | Billing Type | Energy Rate | Best For |
|---|---|---|---|
| Saver Choice (TOU-E) | Time-of-Use (Default) | ~14.81¢/kWh | Standard residential homes |
| Saver Choice Plus | TOU + Demand | 5.2¢–24.4¢/kWh | Homes with consistent load patterns |
| Saver Choice Max | TOU + Higher Demand | 4.8¢–26.1¢/kWh | EV & battery storage owners |
| Lite Choice | TOU (Simplified) | ~14.81¢/kWh | Low-usage & apartment dwellers |
Energy rates include base tariff charges. Riders (~3.25¢/kWh) apply to all schedules. APS does not offer a flat-rate option — all plans are time-of-use. See our EV charging cost calculator to estimate how TOU rates affect home charging.
Time-of-Use Peak Hours by Season
Applies to all APS residential plans — mandatory TOU pricing with three daily time windows
Desert evening cooling peak when AC demand surges. Pre-cooling your home before 4 PM and raising the thermostat during peak avoids the highest rates.
Evening heating and lighting demand as households return home. Winter on-peak rates are lower than summer but still above off-peak.
Midday solar surplus drives rates to ~5.2¢/kWh. Schedule EV charging, pool pumps, and heavy appliances during this window for maximum savings.
Rate History & What's Coming
Phoenix’s 1,000 kWh bill has risen from $112.45 in November 2023 to $128.12 in May 2026. APS has filed for an additional 9.8% increase starting in 2027.
Proposed 2027 Rate Increase & TOU Restructuring
APS has filed a 9.8% residential increase with the ACC for 2027, including restructured TOU peak windows and higher demand charges. A typical 1,000 kWh bill would rise from ~$128 to $141/month. ACC hearings are scheduled for Q4 2026.
TOU Adjustment / DSM Rider
Power Supply Adj + LFCR
Base Rate Case Settlement
Power Supply Adjustment
RES Surcharge / DSM Rider
Power Supply / LFCR
Summer Bills & the Grid
Phoenix bills range from $97 in March to $267 in July. This month (September), a typical home pays around $210. APS generates 38% from natural gas, 28% nuclear, and 24% renewables.
12-Month Seasonal Bill Estimate
Modeled for a typical 1,100 kWh home under Sonoran Desert heating and cooling degree days
Phoenix bills swing from $97 in March to $267 in July. Extreme desert heat drives continuous air conditioning from June through September, with summer bills routinely exceeding $300. Mild spring and fall months offer significant relief.
APS Generation Fleet
Fuel mix powering Phoenix, Flagstaff, Prescott, and central Arizona
Nuclear provides massive baseload via Palo Verde (3,937 MW, 50 miles west of Phoenix) — the largest nuclear power plant in the United States. APS owns 29.1% of Palo Verde’s output. Renewables account for 24% of capacity. APS is targeting 65% clean energy by 2030 and 100% carbon-free by 2050.
Phoenix vs. Other Markets
Phoenix’s 14.81¢/kWh rate is 19% below the U.S. average of 18.34¢/kWh, comparable to Tucson (14.22¢), and slightly above Mesa (13.88¢ under SRP).
Effective Residential Electricity Rate Comparison
Effective rate per kWh based on benchmark 1,000 kWh residential consumption
Regulated market figures reflect official utility tariffs. Competitive deregulated rates reflect active plan offerings. View our comprehensive 50-state electricity price index or see the full Arizona electricity rates page for statewide data.
Other Electricity Providers in the Phoenix Metro
Phoenix metro is split between two major utilities. Your provider is determined by your service address — Arizona is a regulated state with no retail choice.
| Provider | Type | Service Area | Approx. Rate |
|---|---|---|---|
| Arizona Public Service (APS) | Investor-Owned (IOU) | Central & north Phoenix, Scottsdale | ~14.81¢/kWh |
| Salt River Project (SRP) | Public Utility | Tempe, Mesa, Chandler, Gilbert | ~13.88¢/kWh |
| Buckeye Water & Power | Municipal Utility | City of Buckeye | ~14¢/kWh |
| Electrical District No. 3 | Irrigation District | Parts of west Maricopa County | ~11–13¢/kWh |
| Surprise Municipal Electric | Municipal Utility | City of Surprise (select areas) | ~13¢/kWh |
Your provider is determined by your service address — Arizona is a regulated state with no retail choice. Contact your utility directly to confirm which provider serves your location.
APS Programs & Rebates
Phoenix residents cannot switch providers, but APS offers smart thermostat demand response programs, up to $400 in appliance rebates, and emergency bill assistance through LIHEAP and Project SHARE.
APS Cool Rewards
Smart thermostat demand response program. APS provides a free smart thermostat and pays $50/year for permission to adjust your AC by 2–4°F during summer peak events (typically 5–15 times per summer).
Energy Star Appliance Rebates
Receive $50–$400 in rebates for qualifying ENERGY STAR appliances including heat pumps, smart thermostats, pool pumps, and insulation upgrades.
APS Crisis Bill Assistance
Emergency assistance for qualifying low-income Phoenix households through the LIHEAP federal program administered by ADES, plus APS’s own Project SHARE fund with 100% utility matching.
Questions & Answers
What is the average electricity rate in Phoenix, AZ?
About 14.81¢/kWh under APS’s TOU rate plans, roughly 19% below the national average of 18.34¢/kWh. Actual costs vary significantly by time of day under mandatory TOU pricing.
Is Arizona a deregulated electricity state?
No. Arizona is fully regulated. APS is an investor-owned utility regulated by the Arizona Corporation Commission (ACC). There is no retail choice for residential consumers.
Who is the electric utility for Phoenix?
Arizona Public Service (APS) serves most of Phoenix and Maricopa County. Salt River Project (SRP) serves the east Valley. Your utility is determined by address. APS outage line: 1-855-688-2437.
What is the average monthly electric bill in Phoenix?
Typically $135–$165/mo at ~1,100 kWh. Summer bills (Jun–Sep) routinely reach $300–$400+ due to extreme heat requiring 24/7 air conditioning in the desert climate.
How do I report a power outage in Phoenix?
Contact APS at 1-855-688-2437, report online at aps.com/outage, or use the APS mobile app. For SRP customers: 602-236-8888 or srpnet.com.
Why are Phoenix summer electric bills so high?
Phoenix averages 110°F+ for weeks in summer, requiring continuous AC. Under TOU pricing, running AC during peak hours (4–7 PM) costs 2.8× more than off-peak. Pre-cooling your home before 4 PM can save $40–$80/month.
What is the difference between APS and SRP?
APS is an investor-owned utility regulated by the ACC serving central Phoenix. SRP is a publicly governed utility with an elected board serving the east Valley (Tempe, Mesa, Chandler). SRP rates are ~6% lower on average.
