This story was originally published by Grist.

It’s no secret that U.S. electricity prices have been rising over the last few years: The average residential energy bill in 2025 was roughly 30 percent higher than in 2021. This jump is largely in line with the overall inflation Americans have experienced during this period. As the cost of groceries, gas, and housing has increased, so too has the cost of electricity.

But there are big differences from state to state and region to region. Some places — like California and the Northeast — have seen mammoth price increases that outpaced inflation, while costs have held steady in other parts of the country, or even fallen in relative terms. Nearly everywhere, though, rising electricity costs have strained the budgets of low-income households in particular, since they spend a much larger share of their earnings on energy compared to wealthier Americans.

Higher energy bills have also become a political flashpoint. Over the past year, rising electricity prices have helped push voters to the polls, and politicians have taken note. In Virginia and New Jersey, newly elected governors campaigned heavily on reining in utility bills. In Georgia, incumbent utility regulators were booted out by voters, who elected two Democrats to the positions for the first time in two decades.

Arizona and New Mexico saw a nominal decrease in retail electricity prices between 2019 and 2024, after adjusting for overall inflation. However, there is a big difference between the states in how much residents pay for energy every month. Energy bills in New Mexico averaged just $90, while in Arizona they were nearly double at $160.

The main difference between the two states comes down to the fact that a greater share of Arizona residents are exposed to scorching summer temperatures — and therefore more air conditioning usage, especially in population centers like Phoenix. (Average summer highs in Phoenix are about 20 degrees Fahrenheit higher than they are in Albuquerque.) As a result, Arizonans use an additional 400 kWh every month, which leads to higher energy costs.

Arizona residents could also see higher prices in the coming years as a result of rate cases that are being considered, which, if approved, will take effect in 2026. Both Tucson Electric Power and Arizona Public Service are asking the state to approve a 14% increase in rates, which could translate to an increase of about $200 in average household energy bills per year. Both utilities have justified the increase by citing the need to modernize the grid as well as higher costs of constructing and maintaining infrastructure.