Gov. Katie Hobbs is pumping $15 million into a new utility relief push called Power AZ, a one-time boost aimed at Arizona households feeling the sting of rising energy bills.
The initiative, announced Tuesday, temporarily widens who can qualify for the state’s Low Income Home Energy Assistance Program, or LIHEAP. Eligibility now stretches up to 100% of the state median income, roughly $108,000 for a family of four, and state officials say as many as 30,000 households could benefit. Qualified households may receive up to $640, with award amounts pegged to income, vulnerability and actual energy use.
According to the state’s FY2027 budget briefing, Power AZ is folded into the broader Arizona Affordability Fund and relies on one-time funding to supercharge utility help. The budget presentation pegs $108,000 as the 100% median income mark for a four-person household and estimates the expansion could reach more than 30,000 households, per the Office of Strategic Planning and Budgeting.
Who qualifies and how to apply
Under rules run by the Arizona Department of Economic Security, standard LIHEAP assistance can go up to $640 once a year, with extra crisis payments available in emergencies. The exact benefit is set using a points system that weighs three main factors: household income, how heavy the energy burden is and whether there are vulnerable members in the home.
DES says applications can be filed online through the state’s A-to-Z Arizona portal. For a deeper breakdown on eligibility rules, benefit ranges and local partners that help process claims, residents can check the LIHEAP FAQ at the Arizona Department of Economic Security.
Officials welcome the help, but warn it will not cover everyone
State officials and advocates are cheering the new money, even as they acknowledge it will not erase the broader affordability crunch.
Michael Wisehart, director of the Department of Economic Security, called the investment “welcome news for Arizonans anticipating higher energy costs,” while Kelly McGowan noted that “energy costs are rising faster than inflation, and we’re seeing the impact firsthand as more Arizona families struggle to keep up,” according to reporting from KTAR. Hobbs framed Power AZ as one piece of a larger affordability agenda, saying families “shouldn’t have to choose between keeping their home safe and cool and putting food on the table,” in the same coverage.
Even so, Arizona officials point out that, on paper, the state’s electricity prices are still below the national average, even as bills climb in real life. Data from the EIA show Arizona’s average retail electricity prices sit under the U.S. mean. Hobbs’ budget plan would seek to lock Power AZ funding into the Arizona Affordability Fund for the next fiscal year, supporting both direct bill assistance and home weatherization, according to the governor's office.
Applications are already live on the A-to-Z portal, and DES is warning residents not to wait. The agency notes that funds are limited and typically handed out on a first-come, first-served basis.
For the online application, hotline numbers (1-866-494-1981) and a list of local Community Action Agency partners that help with LIHEAP claims, residents can visit the LIHEAP page at the Arizona Department of Economic Security.
