Arizona electricity prices - 15.18¢/kWh (June 2026)

Residential price, average bill, and the data-center story

• Residential electricity in Arizona costs 15.18¢/kWh as of June 2026 - −0.3% year over year, per U.S. Energy Information Administration data.
• The average Arizona home used 1,445 kWh that month and paid an average bill of $219.35 (+4.2% vs a year earlier).
• Arizona has the 35th-highest residential electricity price of the 50 states and DC - 17% below the U.S. average of 18.34¢/kWh.

Price by sector

Data centers & Arizona's electric bills

Arizona's two largest investor-owned utilities have rate cases pending at the Arizona Corporation Commission: APS has proposed a roughly 14% increase (about $20 per month for the average residential customer, and up to 45% for data centers) plus a formula rate plan allowing annual adjustments, and Tucson Electric Power is seeking a 14% increase. Attorney General Kris Mayes has intervened in both, filing expert testimony that TEP's increase could be cut to 4%. Decisions are expected toward the end of 2026.

• 2026-05-18 - APS has proposed a 14% rate increase - about $20 more per month for the average residential customer and up to a 45% increase for data centers - with a public comment session held May 18, 2026 and an Arizona Corporation Commission decision expected toward the end of 2026, while Attorney General Kris Mayes is challenging the proposal. Source: Arizona's Family (azfamily.com)
• 2026-03-05 - In its pending rate case, APS is also asking the Arizona Corporation Commission to approve a formula rate plan that would adjust rates incrementally every year for five years without a new traditional rate case - which APS says would let it assign costs each year to very large customers like data centers that drive up costs - and Attorney General Kris Mayes and Arizona PIRG have filed to intervene, with the final hearing scheduled for May 2026. Source: KJZZ
• 2026-02-11 - Tucson Electric Power is seeking a 14% rate increase, and on February 11, 2026 Arizona Attorney General Kris Mayes filed expert testimony at the Corporation Commission arguing the increase could be reduced to 4%, which her office says would save customers about $148 million per year, or roughly $200 annually per residential customer. Source: Arizona Attorney General's Office
• 2026-04-22 - The evidentiary hearing in TEP's rate case began April 22, 2026 before an administrative law judge, with TEP proposing that new rates take effect in September 2026. Source: AZPM (Arizona Public Media)

Each item above is dated and linked to its primary source; entries are reviewed quarterly. See the large-load tariff tracker and the who-paid-what ledger for the cross-state picture.

Water

Electricity delivered in Arizona carries 12.72 liters of water per kilowatt-hour consumed at the power plants supplying it (1.50 L/kWh excluding hydropower reservoir evaporation), against a national average of 4.28. That is above the national figure, and it is a property of the grid here rather than of any one building: a data center drawing 100 GWh a year in Arizona accounts for about 336.1 million gallons of power-plant water before it cools anything. All states ranked →

Arizona's Colorado River apportionment falls to 2.04 million acre-feet in 2027 and 2028, a reduction of 760,000 acre-feet, the deepest cut of any state under the federal guidelines issued August 21, 2026. Data-center water use is a small share of that arithmetic and a fast-growing one: Phoenix data centers were estimated at around 385 million gallons a year, with projections near 3.8 billion.

A data center's water use is roughly twelve times larger once the water evaporated at its power plants is counted. The Colorado River arithmetic → · how the water numbers work →

All states ranked → · Download Arizona data (CSV) · Glossary