# Arizona Electricity Rate Changes: What Changed in 2026 and What's Next

> Arizona's two largest regulated utilities have rate increases pending, not approved. APS is asking for about 14% overall, roughly $20 a month for residential customers, with a vote expected around December 2026. TEP asked for 13%.

- URL: https://solarexaminer.com/posts/arizona-electricity-rate-changes-2026/
- Site: Solar Examiner (https://solarexaminer.com/)
- Category: Electric Rates
- Published: 2026-10-04
- Last verified: 2026-10-04
- Author: Tehseen Arbab

## Key takeaways

- We found no approved APS rate change for October 1, 2026. Its rate case is still before the Arizona Corporation Commission.
- APS is asking for about 14% overall and about 16% for residential customers, roughly $20 a month. A vote is expected around December 2026, with new rates in early 2027.
- Tucson Electric Power's case is also undecided. TEP's own rate page says it expects approval of new rates in late 2026, and estimates $12.92 a month for a median customer using 638 kWh.
- APS has also proposed raising the monthly grid access charge paid by rooftop solar customers.



Arizona did not have an approved rate change at its largest regulated utility on October 1, 2026. Arizona Public Service (APS) and Tucson Electric Power (TEP) both have increases pending before the Arizona Corporation Commission (ACC).

This article covers APS, which serves about 1.5 million customers, and TEP, which serves about 455,000. Salt River Project (SRP) sets rates through its own board and is not covered.

## Quick Summary

| Item | Utility | Status | Residential impact |
|---|---|---|---|
| Last base rate increase | APS | Effective March 1, 2024 | About 8.3%, $10 to $12 a month |
| Pending rate case | APS | Vote due by Dec. 31, 2026 | About 16%, roughly $20 a month (request) |
| Pending rate case | TEP | Not decided; TEP expects approval in late 2026 | About 12%, $12.92 a month at 638 kWh (request) |
| October 1, 2026 | APS | n/a | No approved change found |

## APS: What Is Proposed

- **Revenue:** $579.2 million.
- **Bills:** an average 16% for residential customers, about $20 a month, according to KJZZ. Small, medium and large businesses would see 6% to 8%. Data centers would see about 45%.
- **Return on equity:** APS asked for 10.7%. The state's residential consumer office recommended about 9%.
- **Formula rates:** APS wants annual formula-based adjustments for five years in place of traditional rate cases. Consumer advocates say that would mean yearly increases with less scrutiny.

**Timeline, per the Arizona Corporation Commission:** the hearing began May 18, 2026 and concluded July 7 after 31 days. The administrative law judge's Recommended Opinion and Order is expected by late November 2026. The deadline for the commission to vote on it is December 31, 2026. New rates are expected in early 2027.

## TEP: Still Pending

TEP asked for new rates from September 2026, but the case has not been decided. TEP's rate page, checked on October 4, 2026, says the company "anticipates that the review will conclude with approval of new rates in late 2026." The docket is E-01933A-25-0103.

**What TEP says its request would do:**

| Plan | Monthly increase |
|---|---|
| Basic plan, median use of 638 kWh | $12.92 |
| Basic plan, summer median of 823 kWh | $14.14 |
| Time-of-use plan | $13.32 |
| Demand plan | $15.59 |

TEP describes this as 11.6%, or about 12%. News reports earlier in the year described the request as 13% to 14% and about $172 million, with a 10.5% return on equity against 9.55% today. The Attorney General's office argued TEP could maintain reliability with 4%.

The hearing ran from April 22 to May 12, 2026. The commission still has to receive a recommended order and vote at an open meeting.

**If you are a TEP customer:** your rates did not change on September 1. Until the commission votes, the current rates apply.

## What This Means for Homeowners With Solar

- **Grid access charge:** APS has proposed doubling the monthly charge solar customers pay, which KJZZ described as currently $2 to $3 a month.
- **Export credits:** APS buys exported solar power at a rate well below the retail rate. We did not verify the current export rate.
- **What it means:** solar you use yourself is worth more than solar you export, and a larger fixed charge would lengthen payback.

Our [solar payback guide](/posts/solar-payback-period-without-federal-tax-credit/) shows how the retail rate and the export credit change the math.

## What to Check on Your Bill

1. Your rate plan. Most APS and TEP residential plans are time-of-use, so averages may not match your bill.
2. The basic service charge and any solar grid access charge.
3. Adjustor lines for fuel and purchased power.

For help sorting the lines on your bill, see our guide to [reading your electric bill](/posts/how-to-read-your-electric-bill/).

## What Happens Next

- **Late November 2026:** expected recommendation in the APS case.
- **By December 31, 2026:** ACC vote on APS.
- **Late 2026:** TEP expects a decision.
- **Early 2027:** new APS rates, if approved.

## Limitations

All APS and TEP figures here are requests, not approved rates. The ACC's docket system could not be opened, so timelines come from the commission's news posts and TEP's rate page. We did not find the date of the commission's TEP vote. SRP and electric cooperatives were not researched.

## Sources

- [KJZZ, "APS wants to raise rates. But it's also asking for a major overhaul in how it charges customers," March 5, 2026](https://www.kjzz.org/politics/2026-03-05/aps-wants-to-raise-rates-but-its-also-asking-for-a-major-overhaul-in-how-it-charges-customers)
- [Arizona Capitol Times, "APS rate case kicks off with hours of protest over 14% rate increase," May 19, 2026](https://azcapitoltimes.com/news/2026/05/19/aps-rate-case-kicks-off-with-hours-of-protest-over-14-rate-increase/)
- [Arizona Corporation Commission, "What's Next in the APS Rate Case?" July 10, 2026](https://azcc.gov/news/home/2026/07/10/what-s-next-in-the-aps-rate-case)
- [Tucson Electric Power, 2026 Rates](https://www.tep.com/2026-rates/)
- [Arizona Corporation Commission, "TEP Rate Case Timeline Update," Feb. 17, 2026](https://azcc.gov/news/home/2026/02/17/tep-rate-case-timeline-update)
- [AZ Luminaria, "TEP rate case: What Tucson customers need to know," May 25, 2026](https://azluminaria.org/2026/05/25/tep-rate-case-what-tucson-customers-need-to-know/)
- [ABC15, "Critics: Arizona Corporation Commission rushed vote on APS rate case," Feb. 2024](https://www.abc15.com/news/local-news/critics-arizona-corporation-commission-rushed-vote-on-aps-rate-case)

## Frequently asked questions

### Did APS rates go up on October 1, 2026?

We found no approved change on that date. APS's hearing ran from May 18 to July 7, 2026. The Arizona Corporation Commission says a judge's recommendation is expected by late November and the deadline for a commission vote is December 31, 2026.

### How much is APS asking for?

About $579.2 million. KJZZ reported an average 16% increase for residential customers, about $20 a month. The Arizona Capitol Times described it as 14% overall and about $240 a year for an average household.

### Does SRP follow the same process?

No. Salt River Project is governed by its own elected board, not the Arizona Corporation Commission, and is not covered in this article.


Image credit: Photo by Vivint Solar on [Unsplash](https://unsplash.com/photos/a-house-with-a-solar-panel-on-the-roof-_ciUqT1HEuY?utm_source=solarexaminer&utm_medium=referral)