Beatrice Lang
Arizona is a major energy hub in the southern United States, with the largest nuclear power plant by net generation located near Phoenix. The state's electricity market is regulated, and its major electricity retailers include Arizona Public Service (APS), Salt River Project (SRP), and Tucson Electric Power. APS is the largest electric company and electricity provider in Arizona. SRP and APS are the two main electricity providers in the Phoenix Metro area, with your service provider depending on your location.
| Characteristics | Values |
|---|---|
| Company Name | Salt River Project (SRP) |
| Alternative Name | N/A |
| Other Company | Arizona Public Service (APS) |
| Area | Phoenix Metro |
| Service | Residential Customer Services (electric) |
| Phone Number | (602) 371-7171 |
| Website | www.aps.com |
| Headquarters | Arizona |
| Industry | Energy & Utilities |
| Sector | Electric Utilities |
| Founded | N/A |
| Type | Public |
| Parent | N/A |
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What You'll Learn
- The main electricity providers in Phoenix: Salt River Project (SRP) and Arizona Public Service (APS)
- The cost of electricity in Arizona is higher than in other western states but lower than the national average
- Arizona's renewable energy comes from solar power and small solar plants
- Arizona has a regulated electricity market, meaning consumers may not have a choice of provider
- Local utility companies must be contacted when moving to Phoenix to start, stop or transfer services
The main electricity providers in Phoenix: Salt River Project (SRP) and Arizona Public Service (APS)
Phoenix, Arizona, is served by two main electricity providers: Salt River Project (SRP) and Arizona Public Service (APS). These companies provide power to the Phoenix metropolitan area, with your specific service provider depending on your location within the Phoenix region.
SRP is an Arizona electric power and water utility company. It offers a range of services, including construction services for water and power, electrical safety workshops, and support for commercial and residential solar installers. SRP also provides resources for builders, developers, and contractors, such as electrical specifications, guidelines, and handbooks.
APS, the largest electricity provider in Arizona, was named to Newsweek's list of Most Trustworthy Companies in America in 2024. They offer various programs and initiatives to support communities across Arizona. For example, the APS Community Tree Program provides grants for tree-planting projects in high-need areas within its service territory. APS also provides rebates for customers to encourage the adoption of energy-efficient practices, such as the $200 AC rebate when installing a new AC unit through a qualified contractor.
Arizona has a regulated electricity market, which means that in some cases, consumers may not have a choice in their electricity provider. The state is a leader in solar energy, with the percentage of electricity generated from solar exceeding the combined contribution of all other renewable sources. Electric companies in Arizona actively promote solar power, offering installation services for solar panels and small electric plants to residents and businesses.
Additionally, Arizona is a major energy centre in the southern United States, with the nearby Paolo Verde nuclear power plant being the largest by net generation. However, despite its favourable climatic conditions, the share of renewable energy in Arizona's total electricity production is relatively small.
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The cost of electricity in Arizona is higher than in other western states but lower than the national average
Arizona Public Service (APS) is the primary electricity provider for Phoenix, Arizona. SRP (Salt River Project), a power and water utility company, is another electricity provider in the Phoenix metropolitan area.
The cost of electricity in Arizona is influenced by various factors, resulting in rates that are higher than in some other western states but remain lower than the national average. The latest data from April 2025 indicates that the average residential electricity rate in the US is 12.89 cents per kilowatt-hour (kWh), with Arizona's rates being higher than this figure. However, compared to other western states, Arizona's electricity rates are relatively lower.
Electricity rates vary across states due to multiple factors, including location, building type, customer class (residential, commercial, or industrial), and energy consumption. The volatility of the energy market also contributes to fluctuations in energy prices, with states experiencing varying increases or decreases in rates. For example, from January 2024 to January 2025, Utah saw a 12% increase in residential electricity prices, while Nevada's rates decreased by 15%.
The time of use also impacts electricity rates, with "peak rates" during periods of high demand, such as extreme weather conditions, resulting in higher prices. Warmer states, including those in the west, tend to experience higher summer rates due to increased energy demand for cooling. Additionally, some energy suppliers offer plans with time-of-use discounts or free usage periods, which can influence the overall cost of electricity for consumers.
While Arizona's electricity rates are higher than the rates in some western states, they remain competitive and below the national average. This balance between regional variations and the national context contributes to Arizona's position in the energy market regarding electricity pricing.
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Arizona's renewable energy comes from solar power and small solar plants
Arizona has been described as having the potential to become "the Persian Gulf of solar energy". The state's renewable energy sources include solar power and small solar plants. In 2023, renewable energy sources provided about 17% of Arizona's total net generation, with three-fifths of that total coming from solar photovoltaic (PV) and solar thermal energy. The state's solar capacity has grown significantly over the years, with Arizona installing over 55 megawatts of solar power in 2010, more than doubling its 2009 increase of 21 MW. By the end of 2011, Arizona had installed 383 MW of photovoltaics, and by 2012, the first 100 MW of the Agua Caliente Solar Project was connected to the grid, making it the largest photovoltaic power plant in North America at the time.
Arizona has two community solar farms. Tucson Electric Power operates a 1.6 MW community solar farm southeast of Tucson, where consumers can purchase 150 kWh for about $3/month. The 227 kW Trico Sun Farm in Marana allows Trico customers to purchase solar panels in one-quarter increments for $920, receiving a credit for the output each month for 20 years.
The state's universities are also committed to sustainable initiatives, including solar and wind installations, and infrastructure improvements to reduce electrical and natural gas consumption. Arizona's primary energy source is nuclear, with the Palo Verde Generating Station being the nation's largest nuclear power plant, producing power for more than 4 million people across New Mexico, Texas, California, and Arizona. However, Arizona's power plants typically generate more electricity than the state consumes, and almost one-fifth of the electricity generated is sent over the regional grid to consumers outside of Arizona.
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Arizona has a regulated electricity market, meaning consumers may not have a choice of provider
Arizona is part of the Southwest electric market, which includes New Mexico and southern Nevada. This market is regulated, meaning vertically integrated monopoly utilities cover the entire value chain with oversight from a public regulator. In a regulated market, customers are bound to their local utility and cannot choose their electricity provider. The utility company is responsible for ensuring that power is generated and transmitted to customers.
Arizona Public Service (APS) is one such utility company serving the state of Arizona. APS was named one of the Most Trustworthy Companies in America by Newsweek in 2024. APS provides various programs and initiatives to support communities across Arizona, such as the APS Community Tree Program and the West Valley Grants program.
Another utility company serving the Phoenix, Arizona, area is Salt River Project (SRP). SRP provides services related to power and water, including construction, leasing, licensing, and solar installation support.
While some states have introduced retail choice, allowing consumers to choose their electricity provider, Arizona's regulated market means that customers in the state do not have this option. Instead, they are dependent on the utility company in their area, which manages the generation, transmission, and distribution of electricity.
It is worth noting that markets can be partially regulated or deregulated, and the distinction is not always clear-cut. The nature of the grid, historical factors, and geographic boundaries can influence the degree of regulation in a state.
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Local utility companies must be contacted when moving to Phoenix to start, stop or transfer services
When moving to Phoenix, it is important to contact the local utility companies to start, stop, or transfer services. Phoenix, Arizona, is served by several utility companies, and the specific provider for your new home will depend on your location in the city.
There are two main electricity providers in the Phoenix Metro area: Salt River Project (SRP) and Arizona Public Service (APS). SRP provides services such as water and power to the area and offers resources for managing commercial electrical projects and residential solar contractors. APS, the largest electricity provider in Arizona, was named one of the Most Trustworthy Companies in America by Newsweek in 2024. They also offer a $200 AC rebate for customers installing a new AC unit through a qualified contractor.
In addition to electricity, other essential utilities in Phoenix include water, sewer, and trash services, which are provided by the City of Phoenix Services. The city of Phoenix also offers resources for setting up new services or forwarding mail through the United States Postal Service (USPS).
It is worth noting that Arizona has a regulated electricity market, which means that in some cases, consumers may not have a choice in buying electricity. However, Arizona is a leader in solar energy production, and electric companies offer installation services for solar panels and small electric plants.
When moving, it is important to determine whether you need to transfer your existing services to your new location or set up new accounts. You may also need to contact cable, internet, and phone service providers, as it is common for these services to be bundled in packages in Phoenix.
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Frequently asked questions
There are two main electricity providers in the Phoenix Metro area: Salt River Project (SRP) and Arizona Public Service (APS).
In 2021, the cost of electricity was 12.3 ¢/kWh, which is lower than the national average of 13.2 ¢/kWh.
The major retailers of electricity in Arizona are Arizona Public Service (APS), Salt River Project (SRP), and Tucson Electric Power.
Arizona is a major energy center in the southern United States, with the largest nuclear power plant by net generation, Paolo Verde, located nearby Phoenix. The state also has many small solar plants that combine to produce a large percentage of its electricity.
You can contact APS Residential Customer Services at (602) 371-7171 or SRP through their website.
