A few hours each day can make or break your Phoenix utility budget. If you have air conditioning, pool equipment, or an EV, time-of-use pricing can swing your summer bill more than you expect. We get how stressful surprise costs feel when you are buying, selling, or settling into a new home. In this guide, you will learn how TOU plans in Phoenix work, how to estimate monthly utilities, and simple ways to control costs without sacrificing comfort. Let’s dive in.
Why TOU pricing matters in Phoenix
Phoenix’s two major electric providers use time-based pricing, which means power costs more during peak hours and less at other times. On the APS Time-of-Use plan, on-peak is 4 p.m. to 7 p.m. on weekdays (as of 2025). You can review current details on the APS Time-of-Use 4 p.m. to 7 p.m. weekdays plan. SRP’s on-peak windows vary by season, with summer typically 2 p.m. to 8 p.m. (May through October as of 2025). See the SRP Time-of-Use plan for current hours.
Some plans also include a monthly demand charge. APS offers a TOU option that bills a demand fee based on your single highest hour of on-peak use each month. Learn how that works on the APS Time-of-Use with a demand charge page. If you run the AC, oven, and dryer in the same hour, that spike can push your bill up more than steady use.
Build a realistic monthly utilities budget
Step 1: Confirm your provider and plan
Start by checking your electric bill to see whether you are with APS or SRP and which plan you are on. Plan names and on-peak hours are listed on your bill or in your online account. If you are unsure, compare your details to the APS Time-of-Use 4 p.m. to 7 p.m. weekdays plan or the SRP Time-of-Use plan pages.
Step 2: Map your usage and seasons
Look at your last 12 months of kWh to see your summer pattern. In Phoenix, higher rates and heavy AC use in May through October drive the biggest bills. For context, Arizona’s average residential price has been roughly 14 to 16 cents per kWh in 2024 to 2025, but your exact rate depends on your utility and plan. See statewide context at Arizona’s average residential electricity price, then rely on your utility’s rate sheet for specifics.
Step 3: Split on-peak vs off-peak
Estimate what percent of your use happens during on-peak hours. AC, cooking, laundry, dishwashers, and pool pumps are the usual culprits. If your plan has a demand charge, identify the hour you tend to stack big loads and plan to spread them out.
Step 4: Build the monthly estimate
Calculate electricity under your plan: on-peak kWh times the on-peak price, plus off-peak kWh times the off-peak price, plus service fees, and any demand charge. Then add other utilities:
- Water and sewer: The City of Phoenix service charge includes 5 units October to May and 8 units June to September for a standard 5/8 inch meter, with seasonal volume charges on top (effective March 1, 2025). Review the City of Phoenix water and sewer rate schedule (effective March 1, 2025) for your home’s meter size and current rates.
- Natural gas: The Arizona Corporation Commission approved a Southwest Gas rate adjustment on March 27, 2025. The average single-family residential impact was described as about a 3.60 to 3.75 dollar increase per month under the order. See the ACC approval of a Southwest Gas rate adjustment on March 27, 2025 for details.
- Solid waste: Phoenix implemented an annual 2 percent solid waste fee increase effective January 1, 2025, and bulk pickup is now by appointment. Review current options and fees at City of Phoenix solid waste rates and programs.
- Internet: Plan costs vary by provider, technology, and speed. Typical consumer plans in Phoenix run about 40 to 100 dollars or more per month in 2024 to 2025. Compare availability and options at internet provider options and typical pricing in Phoenix.
Step 5: Run what-if savings scenarios
Try simple shifts and see how they change your bill:
- Move laundry, dishwasher cycles, and pool pumping outside on-peak. APS on-peak is 4 p.m. to 7 p.m. weekdays, and SRP’s summer on-peak is typically 2 p.m. to 8 p.m. (as of 2025). Even small shifts add up.
- Stagger heavy loads to avoid demand spikes. Do not run the oven, dryer, and AC hard in the same hour.
- Add a smart thermostat and enroll in a utility program for bill credits and peak reductions. SRP lists details at the SRP smart thermostat program. APS offers similar thermostat rebates and a Cool Rewards program on its site.
Adding rooftop solar to the picture
Arizona no longer uses 1 to 1 net metering for new residential systems. Instead, utilities pay for exports through buyback rates that are lower than retail rates, and these values can change over time. Evening on-peak hours still matter because solar output drops as the sun sets. Review plan options and export credit basics in the APS guide to solar and export credits. If you are buying a home with solar, ask for the interconnection date and the export rate terms.
Other monthly utilities to watch in Phoenix
Water and sewer
The City’s rate schedule changed March 1, 2025. The standard 5/8 inch meter service charge includes 5 units October to May and 8 units June to September, with seasonal volume rates on top. Outdoor irrigation and leak repair are the biggest levers for lowering your bill. See the current schedule at the City’s water and sewer page listed above.
Natural gas
Southwest Gas customers saw an ACC-approved rate change on March 27, 2025, with a typical single-family impact of about 3.60 to 3.75 dollars per month. This is an average estimate, so check your own usage and bill details.
Solid waste
City solid waste fees increased by 2 percent on January 1, 2025. If you need bulk pickup, schedule an appointment under the updated program. Extra containers and green organics services have separate fees.
Internet
Availability and promotional pricing vary by ZIP code, technology, and speed. Budget for roughly 40 to 100 dollars or more per month, then confirm with local providers.
Quick TOU survival tips for summer
- Precool your home before on-peak, then let the thermostat rise a few degrees during peak hours.
- Run dishwashers and laundry after 7 p.m. on APS, or outside SRP’s on-peak window in summer.
- Set pool pumps to run off-peak and spread other large loads so they do not overlap.
- Use oven alternatives during peak, like a slow cooker earlier in the day or the microwave.
- Close blinds on sunny exposures and seal air leaks to reduce AC runtime.
- Revisit your electric plan and utility programs each spring. Rates and hours can change.
A final note on accuracy: rate schedules and program terms can change. The on-peak windows and figures above reflect information available as of early 2025. Always confirm current details on your utility’s website or your bill before finalizing a budget.
Ready to plan utilities for your next move or sale in the Phoenix area? Reach out to The Holmes Team for calm, clear guidance tailored to your home and neighborhood.
FAQs
How do APS and SRP TOU plans affect a Phoenix electric bill in summer?
- TOU plans charge more during on-peak hours and less off-peak. In summer, those on-peak windows align with heavy AC use, so shifting cooling and appliances outside peak can reduce bills. See the APS and SRP TOU plan pages for current hours.
How much can I save by moving laundry or pool pumps off peak?
- Savings depend on how much of your usage happens during peak and the price difference. Utilities highlight that shifting major cycles off peak can deliver noticeable savings, and simple models often show around 10 to 20 percent when a large share of on-peak load is moved.
What is a demand charge and how can I avoid bill spikes?
- A demand charge bills you for your single highest hour of on-peak use each month. Avoid it by staggering heavy loads, precooling, and not running the oven, dryer, and AC hard in the same hour. APS explains this on its TOU with demand charge page.
If a home has solar, am I protected from TOU or demand charges?
- Not fully. Arizona uses export buyback rates that are lower than retail rates, and solar production drops in the evening when many on-peak windows occur. Batteries or careful load management may be needed to reduce evening charges.
Which documents should I request from a seller or landlord to estimate utilities?
- Ask for the last 12 months of bills for electricity, water and sewer, gas, and solid waste. If the home has solar, also request the interconnection agreement and export rate terms, plus any utility program enrollment details.
