Phoenix, Ariz. – Arizona residents continue to pay less for electricity than many other states in the country, even during a time when the price of electricity is increasing.  The nationwide average retail residential price rose from 16.41 cents to 17.47 cents per kilowatt-hour (kWh) from May 2024 to May 2025, according to recently released data from the U.S. Energy Information Administration (EIA).  That amounts to a gain of about 6.5%, an increase - nearly four times higher in comparison to Arizona.  Arizona’s average retail residential price which went from 15.49 cents per kWh to 15.76 cents per kWh. Arizona electricity rates rose about 1.7% from year-to-year per kWh. 

The new data released by the EIA reflects the Commission’s commitment to residential ratepayers to maintain a reliable and resilient electric grid at just and reasonable rates.  This includes financially protecting customers from the burden of high costs associated with the addition of large load customers to the state’s energy grid.  The Commission has been preparing for the influx of energy demand with the proliferation of A.I. and the flood of data centers locating to Arizona.  Meeting forecasted energy needs will continue to require significant additions of new generating capacity and transmission infrastructure. 

“The Commission's commitment to ensuring Arizona has a reliable and affordable energy grid amidst massive growth is evident in the latest EIA data,” said Chair Kevin Thompson. "While we have recently witnessed the effects of inflation where costs have skyrocketed on everything from household goods to advanced equipment and technology required to power our grid, the Commission has worked diligently to help manage growth in an affordable and responsible manner."

“The latest EIA report underscores this Commission’s ongoing commitment to keeping energy costs low for Arizonans,” said Vice Chair Nick Myers. “Our goal is, and always has been, to ensure our utilities deliver safe, reliable service at the lowest cost possible.”

“We are all battling record-breaking, historical inflation to our businesses and households, so I am happy to see that in Arizona the Corporation Commission has been able to keep rates as affordable," said Commissioner Rene' Lopez. "We will continue to ensure Arizonans have a reliable, stable, and as affordable as possible grid for generations to come.”

“The data proves that the Commission’s efforts are working to keep costs low while maintaining one of the most reliable electric grids, despite the extreme weather conditions we have in Arizona,” said Commissioner Rachel Walden.  “I remain committed to continuing these efforts as the voters of Arizona entrusted me to do.”

To view the data released by the EIA, go to:  https://www.eia.gov/electricity/monthly/epm_table_grapher.php?t=epmt_5_6_a