Arizona

Why is it like this in Arizona?

Arizona's residential electricity rate of about 15.6¢/kWh faces significant upward pressure from both major utilities. APS filed for a nearly 14% rate increase for 2026, though the state attorney general's expert testimony argues it could be cut to as little as 3%. SRP approved a 3.5% increase effective November 2025. A further complication: Phoenix summer heat reduces EV and hybrid efficiency by 10–31%, meaning real-world electric-mode cost-per-mile is higher than calculations suggest during peak months.

In the news · Arizona

• 
  APS asks Arizona utility regulators for a 14% rate increase in 2026

  KJZZ (Arizona Public Radio) · Jun 16, 2025

  Arizona Public Service filed for a nearly 14% rate hike — about $20/month for a typical 1,000-kWh customer beginning mid-2026 — directly raising the per-mile cost of home-charging for PHEV drivers in APS territory.

• AG Mayes files testimony showing APS rate hike could be cut from 14% to 3%

  Arizona Attorney General · Mar 3, 2026

  AG Kris Mayes's expert testimony argues APS's authorized return on equity overstates investor needs by roughly $524M/yr and that a 3% increase would still maintain reliability — the most consequential check on the rate trajectory that determines whether Arizona home charging keeps its edge over gasoline.

• 
  Board approves changes to SRP electric bills. Most customers will see an increase

  KJZZ (Arizona Public Radio) · Feb 28, 2025

  SRP's board approved a 3.5% rate increase effective November 2025, adding roughly $5.61/month for the average residential customer — for the large share of metro Phoenix PHEV owners on SRP, this further erodes the cost advantage of charging over filling up.

• 
  Who pays for Arizona's AI power boom?

  Arizona Capitol Times · Mar 10, 2026

  Data center load requests to APS now exceed 19,000 MW — more than double current peak demand — while residential usage stays flat. If those growth costs continue to be socialized to households, Arizona's currently favorable per-mile charging math could erode quickly.

• 
  Phoenix heat could cut electric vehicle efficiency by 10%, study finds

  Arizona's Family · May 12, 2026

  A new AAA study shows EV and hybrid efficiency drops about 10% above 95°F, with range loss approaching 31% at 100°F. The real-world mi/kWh figure used in any Arizona cost-per-mile calculation drops meaningfully during five months of Phoenix summer.

Curated coverage of Arizona's EV/PHEV cost, policy, and infrastructure story. External links open in a new tab.

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