News Release
Recent Report Ranks Arizona as No. 2 State for Lowest Energy Costs
Phoenix, Ariz. - The Grand Canyon State is the second least-expensive choice when it comes to energy costs, a new report has found. WalletHub, a personal finance website, analyzed energy affordability across all 50 states and recently released its report, "Energy Costs by State in 2024" (https://wallethub.com/edu/energy-costs-by-state/4833). The report looked at four residential energy types: electricity, natural gas, motor fuel, and home heating oil. Arizona ranked number 49 in the report, which is sorted by the most expensive average monthly energy bill. Arizona is the second cheapest state for overall energy costs, with an average monthly bill of $400. In other key categories in the report, Arizona ranked number 22 for electricity rates at $152 per month, and number 50 for natural gas rates at $69 per month, with number 1 being the most expensive and number 50 being the cheapest. The Arizona Corporation Commission works to vigorously ensure safe, reliable, and affordable utility services. Our priority is to ensure that rates are equitable and fair among customers. The Commission has prudently protected the consumers and the electric grid during record high inflation.
A few factors that distinguish Arizona from other states:
- Diverse generation sources – Arizona relies on a mix of generation sources, from nuclear, natural gas, hydropower, renewables, and battery storage.
- Self-Sufficiency – Arizona is not dependent on imported power. We tap into the market if needed, but our utilities’ primary focus is providing Integrated Resource Plans to guarantee future readiness. The Commission diligently oversees utility upgrades and construction.
- Proactive maintenance to ensure reliability – The Commission prioritizes daily maintenance and line work leading up to summer to ensure the grid is ready for the extreme heat and high load.
“The data released in the report reflects the priorities of our Commission - reliable energy at the most affordable rates, said Commissioner Lea Marquez Peterson. “I’m proud of the service and affordable rates we work hard to provide to ratepayers throughout the state.”
“Arizona energy has become the second cheapest in the nation. This is a great achievement!” said Commissioner Nick Myers. “As promised, we’ve been continuously working to improve the investor rankings for Arizona and its utilities, and I am happy Arizona is working towards a much better energy environment.”
"The Arizona Corporation Commission staff has worked diligently to address the needs of all Arizonans by holding down costs and supporting increased energy supplies. This is demonstrated in the "Energy Costs by State" report by WalletHub. The benefits to consumers are reasonable rates and adequate supply of energy,” said Doug Clark, Executive Director. The Commission is proud of the rigorous resource planning by our Staff and utilities that helps make our energy landscape safe, affordable, and reliable.