The lowest-income Arizonans shell out a disproportionate share of their income to pay their electric and gas bills, according to an analysis tracking bill price between 2014 and 2024.
When adjusted for inflation, the average annual electric bill nationwide increased by roughly $35. But the lowest-income Americans saw a much larger increase: nearly $112.
In the same decade-long period, Arizonans saw their average electric bill increase by $64 per year, when adjusted for inflation. But residents making less than 30% of the state median income — which was a little under $81,800 in 2024, according to Federal Reserve Economic Data — saw an increase of $256. The rate of increase spiked after 2021.
The data compiled by Colorado-based nonprofit RMI doesn't
assess causes. But Kayleigh Rubin, a senior associate at RMI, said that many lower-income families have multi-generational homes or share spaces, increasing consumption. Poor energy efficiency, working from home and different rate plans can also spike costs.
"With bills, you've got your rate, which is a state average, it doesn't really differ by consumer. The thing that has to be changing is consumption," Rubin said.
The nonprofit compiled data from the Federal Reserve, the Energy Information Administration and the U.S. Census Bureau to assess average gas and electric bill costs and energy-related cost burdens over time on a state and county levels.
Bills and rates vary based on several factors, Rubin said, including personal use, building size, energy efficiency and occupancy, extreme weather and even geopolitical tensions. A major winter storm in 2021 and Russia's invasion of Ukraine both spiked prices, Rubin said.
Air conditioning-dependent Arizona had the 18th highest electric bills in the nation and the 26th highest electric rates. The lowest income Arizonans spend, on average, a fifth of their income on energy — primarily electricity.
Rubin said Arizona isn't alone in having wide variations in energy spending across income levels.
"Arizona is a key case of this," Rubin said. "Even though in the rankings, it looks lower on the list of 50, that's not necessarily reflective of what households are experiencing — particularly the lowest income."
Households have a high energy burden when they spend 6% of their income on utilities like gas and electric, Rubin said. They become energy impoverished when they spend 10% or more.
She added that the 6% figure comes from an analysis that determined that, of the 30% of a family’s income set aside for household costs, no more than a fifth of that share should go toward energy costs. When it exceeds that, Rubin said individuals and families can risk difficult choices, debt or even disconnection.
Data from the Energy Information Administration compiled by RMI shows that in 2024, more than 100,000 electric customers were disconnected in the state. Utilities regulated by the Arizona Corporation Commission are subject to a shutoff moratorium during the hottest months of the year, from June 1, 2026, through Oct. 15, 2026.
“We also see households making decisions, such as forgoing basic needs, in order to either keep their electricity bills down, or they’re racking up arrears or debts in order to pay for those bills,” Rubin said.
Alaina Mencinger covers energy, tech and utilities for The Arizona Republic. Reach her at Alaina.Mencinger@usatodayco.com.
This article originally appeared on Arizona Republic: Arizona electric bills rose fastest for lowest earners, study finds
