Most Phoenix area homes are served by either SRP or APS, and the address decides which one. SRP is a not for profit public power entity whose prices are set by its own elected board. APS is an investor owned utility whose rates are set by the Arizona Corporation Commission. Rate plans, solar rules and summer costs differ. Before you buy, find out which company serves the home, which plan the seller is on, and ask for twelve months of bills.
When you buy a home in the Phoenix area, you don't get to choose your electric company. The address decides it. Most homes are served by either SRP or APS, and the difference shows up in your rate plan, your summer bills and, if you have solar, how much your panels are worth to you.
Here's what to know and what to ask before you buy.
Who they are
SRP, the Salt River Project, describes itself as a community based, not for profit organization providing water and power in central Arizona. It's a political subdivision of the state, and its electric prices are set by its own publicly elected board, not by the Arizona Corporation Commission, as SRP explains on its pricing process page.
APS, Arizona Public Service, is an investor owned utility. Its rates are set through cases before the Arizona Corporation Commission, the state agency that regulates private utilities.
| SRP | APS | |
|---|---|---|
| Type | Not for profit public power entity | Investor owned utility |
| Who sets prices | SRP's elected board | The Arizona Corporation Commission |
| Where | Much of the central and East Valley | Much of the West Valley and other parts of the state |
| What decides it | The home's address | The home's address |
Neither one is better for every home. What matters is the plan, the house and how you use it.
How to find out which one serves a home
1 - Ask the listing agent or the seller.
2 - Ask the seller for twelve months of bills, which show the company and the plan.
3 - If you're still not sure, call SRP or APS with the address and ask.
Service areas don't follow city lines. Two homes in the same city can be served by different companies, so check every home you're serious about.
Rate plans matter more than the company
Both companies offer several residential plans, including plans that charge more during peak hours and less at other times. Some plans also include a demand charge, which is based on your highest use during peak hours. On those plans, running the dryer, the oven and the pool pump at the same time on a summer afternoon can cost a lot more than spreading them out.
When you move in, you can usually choose your own plan. Look at the seller's bills, think about how you'll use the house and ask the company to help you compare plans. Plans and prices change, so check the current options on each company's website before you decide.
Summer is the real test
In the Phoenix area, the summer bills are the ones that matter. A home that looks cheap to run in March can look very different in August. That's why I always ask for twelve months of bills, not an average. The summer months tell you about the AC, the insulation, the windows and the pool, all at once. More in How much home can you comfortably afford in Arizona?
Solar works differently with each
If the home has solar panels, the electric company affects how much they save you. Each company has its own rules for solar customers, including which plans are available and what you're credited for power you send back to the grid. Ask the seller which plan they're on and look at a full year of bills to see the real effect. More in Solar panels and selling your home.
Starting service when you buy
Set up service in your name for your closing date, so there's no gap. New customers may be asked for a deposit, depending on credit and the company's rules. Both companies offer budget billing, which spreads your costs more evenly across the year, and that can make summer easier to plan for.
If you're moving from out of state, ask the company what it needs to open an account, such as identification and your move in date. A quick call a week before closing saves you from arriving to a dark, hot house.
Ways to lower the bill in any home
Shade on the west and south sides, good attic insulation, sun screens on west facing windows, a well maintained AC and a smart thermostat all help. Running the pool pump outside peak hours helps too. These matter more than which company serves the home. See What an Arizona summer means for owning a home.
What to ask before you buy
1 - Which company serves the home?
2 - Which rate plan is the seller on?
3 - Can I see twelve months of bills, including summer?
4 - If there's solar, is it owned, financed or leased, and which plan is it on?
5 - How old is the AC, and when was it last serviced?
The bottom line
SRP or APS isn't a choice you make, but understanding the plan and the bills is. I'll help you get the real numbers before you commit to a home.
Send me a message if you'd like help reading a home's power bills.
Questions, answered.
Can I choose between SRP and APS?
No. The home's address decides which company serves it. You can usually choose your rate plan once you move in.
Who regulates SRP and APS?
APS rates are set by the Arizona Corporation Commission. SRP is a political subdivision of the state, and its electric prices are set by its own elected board.
Why ask for twelve months of bills?
Summer bills in the Phoenix area can be much higher than spring or winter bills. A full year shows you the real cost of running the home.
What is a demand charge?
It's a charge based on your highest use during peak hours on certain plans. Spreading out big appliances during peak times can lower it.
Does solar work the same with both companies?
No. Each company has its own plans and rules for solar customers. Look at a full year of bills and ask which plan the home is on.
Want to talk it through?
Bring me the specifics of your situation and I will tell you straight what I would do. No pitch, nothing to sign, and no obligation to work with me afterward.
Ask me about a home's power bills