Washington, D.C. — Despite campaign promises to slash electricity prices, the Trump administration’s policies are driving up prices in Arizona and beyond. In fact, the two largest utility companies in the state, Arizona Public Service (APS) and Tucson Electric Power (TEP), have cited current federal policies and actions as reasons for higher costs to the companies and for customers.
A new analysis by the Center for American Progress finds that about 1.85 million people—or 52 percent of Arizona’s electric utility customers—would pay an additional $1.50 billion through 2028 due in part to the Trump administration’s policies. On average, APS customers can expect a $240 increase in their residential electricity bills, while TEP customers can expect a $186 increase.
Current federal policies that are contributing to higher costs include:
- Changes in trade policy: The implementation of tariffs has increased economic uncertainty, according to testimonies before the Arizona Corporation Commission. Both APS and TEP requested a higher return on equity—10.7 percent and 9.75 percent, respectively—than what they each currently have in place to offset risks associated with higher inflation.
- Cuts to federal funding: APS had received a loan commitment through the Inflation Reduction Act to invest in clean energy infrastructure, but by January 2026, it was canceled. As a result, Arizonans will lose out on approximately $250 million in total savings for customers.
- The One Big Beautiful Bill Act (OBBBA): Independent of APS and TEP’s requests, Arizona residents are projected to pay an additional $140 per year on their energy bills by 2030 due to OBBBA.
“American families are increasingly struggling to afford their utility bills and other basic necessities,” says Lucero Marquez, associate director for federal climate policy at CAP and co-author of the analysis. “Despite promising to lower costs, this administration’s policies are doing the exact opposite, and families in Arizona are paying the price.”
Read the analysis: “The Trump Administration’s Actions Are Increasing Utility Bills in Arizona” by Akshay Thyagarajan and Lucero Marquez
For more information or to speak with an expert, please contact Gaby Blanco at [email protected].