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FACT BRIEF

Did a study rank Arizona as one of the lowest energy-cost states in the nation

By Carmela Guaglianone
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YES

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.
Sources
WalletHub Energy Costs by State in 2024
Arizona Center for Investigative Reporting National Average Calculation - Energy Cost
New York Times Which States Pay the Highest Energy Costs?
US Energy Information Administration Arizona State Energy Profile
US Energy Information Administration Arizona State Energy Profile
ACC Votes on Arizona public service company rate case
SRP Newsroom SRP Board Approves Additional Fuel and Purchased Power Increase Effective Nov. 1, 2023
12News Arizona regulators tout second place energy cost ranking, but federal data says otherwise
ABOUT THE CONTRIBUTOR
Arizona Center for Investigative Reporting
The Arizona Center for Investigative Reporting is the state’s only independent, nonpartisan and collaborative nonprofit newsroom dedicated to statewide, data-driven investigative reporting. AZCIR's mission is to hold powerful people and institutions accountable by exposing injustice and systemic inequities through investigative journalism.
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Fact briefs are short, credibly sourced summaries that offer “yes/no” answers in response to claims found online. They rely on publicly available, often primary source data and documents. Fact briefs are created by contributors to Gigafact —a nonprofit project looking to expand participation in fact-checking and protect the democratic process. See all fact briefs here.