Arizona (AZ) electricity and natural gas rates
Electricity
15.38¢
per kWh
Natural gas
$2.54
per therm
Gas and electricity in the same unit
A therm is 29.3 kilowatt hours of energy, so Arizona's gas works out at 8.66¢ per kWh against 15.38¢ for electricity.
That compares the energy you buy, not the heat you get. A furnace throws away a fifth of every therm up the flue, while a heat pump delivers two to three times the heat in a kilowatt hour — so the cheaper unit here is not automatically the cheaper way to heat a house.
Residential sector, US Energy Information Administration, 2026-07. Updated monthly.
How Arizona compares
At 15.38¢ per kWh, Arizona is below the national average of 19.26¢, making it the 19th cheapest of the 51 states we track.
What a typical Arizona household uses
Electricity a month
1,052 kWh
Bill a month
$162
Households in Arizona use 22% more electricity than the national average and pay 8% more than average. Cheap power absorbs most of that: the meter turns faster here, but at 15.38¢ each unit costs less than it does nationally. Cooling explains most of it: Arizona runs about 2,800 cooling degree days a year against 1,800 heating ones, so summer, not winter, sets the bill.
More on this: the average electric bill in Arizona, including how far it swings between seasons.
Averaged over twelve months across 3,210,050 residential accounts in Arizona. Source: EIA.
What this means for heating
Arizona sees around 25 freezing nights a year. Whether a heat pump beats a furnace here depends on the gap between those two prices above — not on the equipment.
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