Analyze Statistics on Energy Use in Tucson, Arizona MSA
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Average Monthly Residential Electricity Bill (2023)
In 2023, the state of Arizona posted the second-highest average monthly electricity bill at $148.4, just behind Texas. That was nearly 12 percentage points higher than the average bill nationally. Texas had the highest average bill increasing significantly from 2022 to $165.8 in 2023. Utah had the lowest average monthly electricity bill at $85.0. Arizona's average monthly bill increased by 7.5% between 2022 and 2023. Arizona's relatively high electricity bills are due to high levels of electricity consumption coupled with a higher-than-average price per kWh.
Why is it important?
Utilities are considered natural monopolies, where competition and free-market entry do not exist; therefore, the government regulates electric utilities. Government regulation serves to ensure that service is adequate, companies are responsive, prices are fair, and that the utility sticks to strict safety standards. Even with government regulation, the average price of electricity can vary widely because of variations in the operating costs of the utility. Additionally, prices may vary based on time-of-day pricing and consumer charges.
Electricity use accounts for a large share of household spending. Customers who generate their own electricity through net metering may reduce their utility purchases and sell energy back to a utility. Net metering is one way that electricity consumers are reducing their overall energy costs. Households that participate in net metering typically generate energy through personal solar collection, but may also use other means, such as wind, hydroelectric, or virtual solar.
How do we compare?
In 2023, the state of Arizona posted an average electricity price of 14.0 cents per kilowatt-hour (kWh). Arizona had the sixth-highest average electricity price among western states. California’s average electricity price at 29.5 cents per kilowatt-hour was substantially higher than the western states and the nation. The U.S. average at 16.0 cents per kilowatt-hour was greater than all the western states, except for Nevada and California. Electricity prices in the Northwest were among the lowest, with Washington leading the way at 11.0 cents per kWh.
In 2023, there was a significant variation in the average electricity price among utility companies located in Arizona with prices ranging from 8.5 cents per kWh to 18.6.
How electricity is generated varies significantly from state to state due to the availability of energy sources such as coal, natural gas, wind, and solar. State policies and regulations also influence the mix of energy sources each region utilizes. Arizona is home to the largest nuclear power plant (Palo Verde Nuclear Generating Station) in the United States. In 2023, Arizona's primary sources of electricity were natural gas, nuclear, coal, solar, hydroelectric, and wind. Natural gas accounted for the largest share of electricity produced at 47.2%, the share of energy produced by nuclear was 28.2%, followed by renewable sources (hydroelectric, solar, and wind) at 13.7%, and coal at 10.8%. Arizona was similar to the nation, except it had a slightly higher share of electricity produced by nuclear energy and a lower share produced by renewables.
Arizona's mix of energy sources has changed over the past twenty years. For example, the share of electricity produced by coal decreased from 44.4% in 2021 to 10.8% in 2023, while the share of natural gas increased significantly. The use of renewables in electricity production, especially solar and wind, also increased during this time. To view the long-term trend in electricity production for the U.S. and Western states, visit the comparison page.
The use of renewable energy sources to produce electricity has increased rapidly over the past two decades. In 2023, renewables contributed to 13.7% of the electricity generated in Arizona. The primary sources of renewables used in Arizona to produce electricity were hydroelectric, solar, and wind. Solar accounted for the largest share of renewables at 48.4%, followed by hydroelectric at 38.9%, and wind at 11.4%. Biomass, the burning of organic materials to generate electricity, accounted for 1.3% of renewable energy. Select geography from the click-down menu to view the generation of renewable electricity as a share of total renewables for the nation and Western states.
The number of customers who participate in net metering has been on the rise. Between 2013 and 2023, Tucson Electric Power, Trico Electric Cooperative, and the state of Arizona all posted an increase in the number of net metering customers. Tucson Electric Power’s growth of 999.7% in net metering customers during that time outpaced Trico Electric Cooperative and the state of Arizona which reported slightly lower gains of 661.6% and 723.7%, respectively. In 2017, the U.S. Energy Information Administration began to measure a new net metering option, virtual solar, where customers can belong or subscribe to a solar community and reap the benefits of solar net metering without having to install rooftop solar. Currently, within the state of Arizona, Trico Electric Cooperative and the Salt River Project are the only utilities that have virtual net metering customers. Visit the Energy Use Comparison page to explore the virtual net metering data.
Currently, eight utilities in Arizona report net metering customers. In 2023, Arizona Public Service Company reported the largest number of net metering customers, with 14,054 per 100,000 customers, while Tucson Electric Power reported 11,526 net metering customers per 100,000.
In 2023, California far surpassed the other Western states, with 13,483 net metering customers per 100,000. Arizona ranked second, with 9,462 net metering customers per 100,000, while Texas came in last. The number of residential net metering customers throughout the U.S. increased by 20.8% between 2022 and 2023 to 4,618,099 (EIA, Electric Power Annual 2022, Table 4.10).
How is it measured?
The U.S. Energy Information Administration (EIA) reports data on the net generation and the average price of electricity for the U.S., the states, and utility providers. Net metering data is reported to the EIA by each individual utility, which EIA compiles and publishes for the public. The EIA is the statistical and analytical agency within the U.S. Department of Energy. They collect, analyze, and disseminate information that covers the full spectrum of energy sources, end uses, and energy flows. Data is reported monthly and annually.
