In 2018, the average electricity price in Arizona was 12.8 cents per kilowatt-hour (kWh). Arizona tied with New Mexico for the second highest price among western states, just behind the nation. California’s price of 18.9 cents (kWh) was the highest and nearly double the average price of electricity in Washington, which had the lowest price. Within Pima County, Tucson Electric Power and Trico Electric Cooperative serve select areas of the region and post prices consistent with the state. Utilities are considered natural monopolies, where competition and free-market entry do not exist, therefore, the government regulates electric utilities. However, even with government regulation the average price of electricity can vary widely because of variation in operation costs, time-of-day pricing, and consumer charges. Some customers in Arizona offset their overall energy costs through solar net metering.
