APS Electricity Rates in 2026: What Are You Actually Paying?

If you're looking up APS electricity rates in 2026, there's no single number per kWh. Arizona Public Service (APS) has several home plans. What you pay depends on your plan, when you use power, how much you use, and a few extra charges on top.

APS also has a major rate increase pending. It is not approved, and it is not on your bill today. This guide covers both: what you actually pay now, and what APS has asked to change. The right first question isn't “What's APS's rate?” It's “Which APS plan am I on?”

What Are APS Electricity Rates in 2026?

APS's current base rates took effect March 8, 2024. A kWh (kilowatt-hour) is the unit of electricity on your bill. APS offers four current home plans:

• Fixed Energy Charge (R-1): one price at all hours.
• Time-of-Use 4–7 p.m. Weekdays (TOU-E): the price depends on the time of day.
• TOU with Demand Charge (R-3): lower kWh prices plus a fee based on your highest-use hour.
• EV Overnight 11 p.m.–5 a.m. Weekdays (R-EV): for electric vehicle owners.

Some customers are still on older plans, such as Saver Choice Plus (R-2), which has been closed to new customers since December 1, 2021. Summer prices apply to May–October bills. Winter prices apply to November–April bills.

The Fixed Energy Charge Plan (R-1)

On the Fixed plan, power costs the same at any hour, day or season. But your price per kWh depends on your average monthly usage over the year:

• Tier 1 (600 kWh or less): 12.925¢/kWh, with a $0.362 daily basic charge (about $10.86 per 30 days)
• Tier 2 (601–999 kWh): 14.052¢/kWh, with a $0.458 daily basic charge (about $13.74 per 30 days)
• Tier 3 (1,000 kWh or more): 15.418¢/kWh, with the same $0.458 daily charge

Those amounts come before adjustors, taxes and fees, and any solar charges.

How APS Sets Your Fixed-Plan Tier

APS reviews your average usage every January and can move you to a new tier. That creates a hidden bonus for efficiency. Using less can lower both your kWh and your future price per kWh.

Here's a hypothetical. A home averages 1,050 kWh a month in Tier 3. Energy costs about $161.89 a month (1,050 × 15.418¢). After AC, duct and insulation upgrades, it averages 900 kWh. After the next January review, it could land in Tier 2. Then energy costs about $126.47 (900 × 14.052¢). That's about $35 a month less, from fewer kWh and a lower price.

What Does 1,000 kWh Cost on the Fixed Plan?

In Tier 3, 1,000 kWh × 15.418¢ = $154.18 for energy. Add about $13.74 for a 30-day basic charge. The subtotal is about $167.92.

Your real bill will be higher once adjustors, taxes and fees are added. That's why the published price never equals your true cost per kWh.

APS Time-of-Use Rates: The 4–7 p.m. Plan

On a time-of-use (TOU) plan, the price depends on the time of day. APS's on-peak hours are 4–7 p.m., Monday through Friday, all year. Weekends and holidays are off-peak.

• Summer (May–Oct): 34.396¢ on-peak, 12.345¢ off-peak
• Winter (Nov–Apr): 32.543¢ on-peak, 12.351¢ off-peak, and 3.495¢ super off-peak from 10 a.m.–3 p.m. on weekdays

In summer, on-peak power costs about 2.8 times as much as off-peak power. That winter midday price is very low, so it's a great time for flexible chores.

Why 4–7 p.m. Matters So Much

Say a home uses 10 kWh during the summer peak. At 34.396¢, that's about $3.44. The same 10 kWh off-peak costs about $1.23. That's a $2.21 difference for just 10 kWh, and it repeats on every hot weekday.

Good loads to move out of the peak include laundry, the dishwasher, the pool pump, EV charging and water heating. Pre-cooling helps too. Cool the house a bit more before 4 p.m., ease off during the peak, then return to normal after 7 p.m. This works best in a home with good attic insulation and sealed ducts, because it holds the cool air longer.

The Demand-Charge Plan (R-3)

This plan has much lower kWh prices. But it adds a demand charge, which is a fee based on your single highest on-peak hour of the month.

• Summer: 14.227¢ on-peak, 5.943¢ off-peak, plus $19.585 per kW of demand
• Winter: 9.932¢ on-peak, 5.938¢ off-peak, 3.495¢ super off-peak, plus $13.747 per kW

Suppose your busiest summer hour from 4 to 7 p.m. reaches 6 kW. The demand charge is 6 × $19.585 = $117.51 that month, on top of energy charges.

How One Hour Can Set Your Demand Charge

Picture 5:30 p.m. The AC, oven, dryer, pool pump and EV charger are all running at once. That one hour can set the demand charge for the whole month. On this plan, spreading loads out matters almost as much as using less.

APS offers some protection called a demand limiter, which leaves out one high-demand event. You can use one during the summer and up to three per calendar year. It helps with rare spikes, but it won't fix a daily habit.

The EV Overnight Plan (R-EV)

In summer, this plan charges 36.824¢ on-peak, 12.345¢ off-peak and 8.468¢ overnight. In winter, it's 34.820¢ on-peak, 12.351¢ off-peak, 8.468¢ overnight and 3.495¢ from 10 a.m.–3 p.m. on weekdays.

Two details matter. The overnight price applies on weekdays only, so weekend nights are billed at the regular off-peak price. And the plan rewards waiting to plug in rather than charging right after work.

So What Is APS's Real Rate per kWh?

It depends. The same kWh could cost 15.418¢ on the top Fixed tier or 34.396¢ at summer TOU peak. It could cost 5.943¢ off-peak on the demand plan, or 8.468¢ overnight on the EV plan.

Then come the basic charge, taxes, fees and adjustors. Adjustors are per-kWh charges the Arizona Corporation Commission (ACC) lets APS update between rate cases. In 2026, the fuel and purchased-power adjustor reset on February 1, and the transmission adjustor changed on June 1.

Compare kWh Before You Compare Dollars

Suppose August 2025 was 1,200 kWh and $220, and August 2026 was 1,800 kWh and $340. It's tempting to say APS raised your bill $120. But usage rose 50%. That points to the house, and in Arizona, the first place to look is usually the air conditioning.

If usage stayed near 1,200 kWh but the bill jumped, that's a different problem. Then look at your plan, peak-hour use, demand and adjustors.

Use APS's Plan Comparison Tool

APS has an online plan comparison tool that uses your real usage to show whether another plan would have cost less. Check it before you buy solar, HVAC or a battery. The easiest fix might be a plan switch. Run it again after any big efficiency upgrade, because the best plan can change.

APS Rate Increase 2026: What APS Has Asked For

In June 2025, APS asked the ACC for a large rate increase, based on its 2024 costs. The main numbers:

• A base-rate increase of about $662 million (15.99%), or about 13.99% net across all customers.
• Residential customers as a group: about 16.44% more.
• APS says a typical home using 1,000 kWh would pay about $20 more per month.
• On the TOU plan, the basic charge would rise about 9.17% and energy prices about 16.6%.
• A higher Grid Access Charge for rooftop solar customers.

These are requests. The ACC can approve, change or reject them.

Why APS Says It Needs More

APS says today's rates mostly reflect its costs from 2021 and 2022. Since then, it points to inflation, higher interest rates, grid and reliability spending, and customer growth. APS says it invests about $2 billion a year in its system. It also says transformers now cost about 64% more than when today's rates were set.

What Is the Formula Rate Mechanism?

APS also proposed a Formula Rate Mechanism. Instead of a big rate case every few years, rates would be adjusted each year based on the past 12 months of costs. For homes, each yearly change would be kept between 0.85 and 1.15 times the average change. APS argues this would make changes smaller and steadier. The ACC will decide whether to allow it.

Data Centers and Large-Load Rates

The case also covers an extra-high-load class for the biggest, steadiest users, such as data centers. These customers use 5,000 kW or more and run near full power almost all the time. APS has proposed raising their rates about 47%, far more than the residential increase.

In August 2026, APS made a “growth pays for growth” pledge. It says data centers will pay their own costs, and it won't connect new extra-large users faster than it can reliably serve them. The real question for the ACC is who pays for which costs.

When Will the ACC Decide?

The hearing began May 18, 2026, and ended in July 2026. The case did not change anyone's summer 2026 bills. APS expects an ACC decision later in 2026. Until then, the current rates above are what you pay.

Don't Build a Solar Quote on the Requested Increase

A proposal that says “APS is raising rates 16%” is getting ahead of the ACC. A better savings estimate starts with today's approved rates. It can show a few “what if” scenarios, then get updated when the ACC rules.

HVAC Can Matter More Than a Rate Change

The proposed increase is about $20 a month for a typical home. Now suppose an aging AC wastes 600 kWh a month in summer. At 15¢ to 30¢ per kWh, that's roughly $90 to $180 a month. A better AC can also cut peak-hour use and demand charges. It might even drop a Fixed-plan home into a lower tier.

Solar, Batteries and the 4–7 p.m. Gap

Solar can cut what you buy from APS. But panels produce most around midday, and APS's priciest hours are 4–7 p.m. By then, solar output is falling. Rooftop solar customers on current plans also pay a Grid Access Charge. So a solar quote should model your actual plan and APS's export rules, not just multiply output by an average rate.

A battery can store midday solar and use it during the peak. It can also help manage demand and provide backup. But it still has to justify its cost, financing and wear. A big price gap creates an opportunity. It doesn't guarantee payback.

The Best Order for an APS Customer

1. Identify your plan: Fixed, TOU, TOU with Demand, EV or an older plan.
2. Compare kWh year over year to see if the house changed.
3. Review hourly usage, especially 4–7 p.m.
4. Check your demand if you're on a demand plan.
5. Diagnose AC, ducts and insulation.
6. Run APS's plan comparison again after any upgrades.
7. Evaluate solar using current APS solar rules.
8. Evaluate a battery separately for peak shifting and backup.

The Ashborn Approach

Before recommending equipment, Ashborn Partners looks at your APS plan, past kWh, hourly usage, peak-hour use and demand. We also review HVAC age and efficiency, ducts, insulation, solar, batteries, EV and pool loads, and the pending rate case. An Ashborn Advisor can connect you with participating providers in your area.

With APS, when you use power can matter as much as how much you use. Your plan should account for both.

APS prices shown are base energy prices in effect since March 8, 2024, before adjustors, taxes and fees. APS’s pending rate request (ACC docket E-01345A-25-0105) has not been approved; the ACC can approve, change or reject it.