Arizona ranked second lowest in the nation for residential energy costs in a widely-cited July 2024 study by WalletHub, a personal finance company. The study determined Arizonans paid $400 on average for monthly energy costs, compared to $620 nationally. 

Average monthly energy cost per state was calculated using the combined costs and usage for natural gas, electricity, motor fuel and home heating oil. 

Arizona residents pay the least in the nation in average monthly natural gas costs, in part because the fuel makes up a small share of the state’s residential energy portfolio. Arizona ranked middle of the pack in fuel and electricity costs, and near lowest in home heating oil costs. 

Many Arizonans experienced an increase in electricity costs beginning in March, when an 8% rate hike was instituted by APS, the largest energy provider in the state. SRP customers saw a similar increase go into effect last November.  

The study’s methodology, which produces a cumulative average and relies primarily on data from 2022, has drawn criticism. 

This fact brief is responsive to conversations such as this one.

Editor’s note: This fact brief has been updated to include new information. 

The Arizona Center for Investigative Reporting partners with Gigafact to produce fact briefs, or quick-response fact checks, about trending claims relating to Arizona.