Updated: March 2026
Commercial electricity and gas rates, energy market structure, regulations, and utility providers for property managers operating in Arizona.
Arizona has a regulated electricity market served primarily by Arizona Public Service (APS) and Salt River Project (SRP). The Arizona Corporation Commission regulates APS rates, while SRP operates as a quasi-governmental utility. Commercial customers cannot choose their electricity supplier but can access demand management and renewable energy programs.
What this means for property managers:
In Arizona's regulated market, your utility provides both generation and distribution at rates set by the state public utility commission. While you cannot choose your electricity supplier, you can optimize costs through rate schedule analysis, demand management, and participation in utility efficiency programs.
Rates are set by the public utility commission. No supplier choice available.
Rising
APS rates increasing 7-9% annually due to grid hardening investments, summer peak demand infrastructure costs, and clean energy transition expenses. SRP demand charges particularly impactful for commercial accounts.
Arizona has no statewide energy benchmarking mandates. The state's energy regulatory approach prioritizes reliability over emissions reduction. However, extreme cooling costs make Arizona one of the most important markets for commercial energy management. APS and SRP offer aggressive demand response programs with significant incentives for commercial buildings that can reduce peak summer load.
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