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Arizona Electricity Information

Arizona’s electricity generation is dominated by natural gas and nuclear power, with the Palo Verde Nuclear Generating Station being the largest producer in the state. Solar energy also plays a significant and growing role, thanks to Arizona’s abundant sunshine, making it a leader in solar capacity. Coal, once a major source, has seen a decline as the state shifts toward cleaner energy options. Electricity consumption in Arizona is relatively high, driven by hot summers that increase demand for air conditioning, as well as a growing population and industrial activity.

Electricity prices in Arizona are close to the national average, with residential rates often influenced by seasonal demand spikes. The state has made strides in reducing emissions by investing in renewables and retiring coal plants, though transportation remains a larger contributor to overall emissions. Arizona’s commitment to solar energy and energy efficiency programs reflects its focus on a sustainable and resilient energy future, balancing growth with environmental responsibility.

Electricity Production

Primary Source

Natural Gas

Total Generation: 111,838,736 MWh
Ranks 12th Highest in the U.S.
Average Price: 15.28¢ /kWh
Ranks 31st Cheapest in the U.S.
Average Electric Bill: $147.16
Ranks 39th Cheapest in the U.S.

Electricity Production By Source

Emissions From Electricity Generation

Carbon Dioxide Emissions Rank

17th Highest

34,788 TMT

Sulfer Dioxide Emissions Rank

31st Highest

7,036 tn

Nitrogen Oxide Emissions Rank

18th Highest

24,718 tn

Renewable Electricity Generation

Renewable Production Rank

15th Highest

15,108,798 MWh
13.51% of Total Production

Source U.S. Energy Information Administration (EIA) Based on data from 2023

Energy Usage in Arizona

Energy Usage Per Capita Rank

12th Lowest

Average Per Person: 207 million BTU

Arizona’s power use is defined by its hot, arid desert climate, long triple-digit summers in the Sonoran and Mojave deserts drive heavy air-conditioning loads and sharp late-afternoon peaks, while generally mild winters keep heating needs modest except in higher-elevation regions like Flagstaff. Rapid population growth around Phoenix and Tucson adds to year-round demand, and monsoon humidity can push cooling even higher. Time-of-use rates, demand-response programs, and fast adoption of rooftop solar (plus batteries) are reshaping when electricity is used, shaving some daytime demand but shifting more consumption into evening hours when the sun sets and homes stay cool.

Municipal Utilities in Arizona

While most cities, towns, and villages throughout the state of Arizona offer municipal essential services like providing clean water, sewage treatment and dealing with waste and storm water, some also offer other services like electricity, natural gas, sanitation or recycling. In Arizona, 34 cities offer municipal electricity utility services to their residents.

Largest Electric Companies in Arizona

The rest of Arizona receives electric utility service from one of many primary providers. Here’s a list of some of the larger providers that might be available to your home:

Arizona Natural Gas Information

Arizona’s reliance on natural gas grew alongside rapid population and load growth from the 1990s onward, as utilities shifted away from oil and coal toward quicker-ramping gas plants to backstop booming summer air-conditioning demand. Today, natural gas fuels a large share of the state’s electricity generation and is used directly in homes and businesses for space and water heating, cooking, and industry. The state’s climate is mostly hot and arid, triple-digit summers in the deserts push gas-fired power plants hard to meet peak loads, while cooler winters in higher-elevation regions (Flagstaff, the Mogollon Rim) bring a seasonal bump in direct gas heating.

On market structure, Arizona remains largely regulated for natural gas: residential customers generally don’t shop among competitive suppliers. Utilities like Southwest Gas (and municipal providers such as the City of Mesa) handle both procurement and delivery, though large commercial/industrial users may have limited transportation options in specific circumstances. The result is a system designed for reliability in extreme summer conditions, with natural gas serving as the fast, flexible backbone for both the grid and everyday end uses.

Average Natural Gas Price

$2.373 /CCF

Ranks 32nd Cheapest in the U.S.

Average Natural Gas Bill

$116 /month

Ranks 38th Cheapest in the U.S.

Natural Gas Usage Per Capita

41st Lowest

Average Per Person: 52.28 MCFs Annually

Largest Natural Gas Companies in Arizona

Many of the residents of Arizona receive their natural gas utility service from one of the larger companies that service the state.

Arizona Internet Connectivity

Broadband Availability

84.49%

Ranks 18th in the U.S.

Percent of Ppopulation with access to 100 Mbps download and 20 Mbps upload

1 Gig Availability

37.68%

Ranks 25th in the U.S.

Percent of population with access to download speeds of 1 Gbps

Fiber Availability

15.11%

Ranks 2nd in the U.S.

Percent of population with access to Fiber Internet

Largest Internet Providers in Arizona

When it comes to high-speed internet, homes in Arizona have plenty of options to stay connected! From bustling cities to quiet rural areas, a variety of providers offer reliable service across the state. Here are some of the biggest names keeping Arizona homes online and in the loop:

Utility Costs in Arizona

The average monthly total utility bills in Arizona is $316.11, which is 14.06% higher than the national average.

Average Electric Bill

$147

Higher than national average

Average Natural Gas Bill

$116

Higher than national average

Average Water Bill

$53

Higher than national average

Arizona Deregulaton of Electric and Natural Gas

Arizona has not deregulated utilities in the state. Unlike some other states you probably only have one choice of provider for electricity and natural gas. Choose your city below to see a list of utility providers that offer service in your area.