Power AZ Cools the Pressures of the Utility Bill
Recognizing that high energy rates are stretching household budgets thin, Governor Hobbs dedicated $15 million to make utility relief more accessible for everyday Arizonans. The launch of Power AZ marks a major shift in how DES is tackling the affordability crisis, providing a critical financial cushion for families struggling to keep up with the rising cost of living and mounting energy bills.
As Arizonans struggle to keep up with rising costs, I’m taking action to deliver relief to families across our state.
In Arizona, energy assistance can mean life or death during extreme heat. Families shouldn’t have to choose between keeping their home safe and cool and putting food on the table. --Governor Katie Hobbs
Power AZ expands utility bill assistance beyond the Low Income Home Energy Assistance Program (LIHEAP). Understanding the history of LIHEAP and its funding distribution is helpful to understanding the importance of this investment.
LIHEAP in Arizona: An Evaporating Limited Resource
Since the 1980s, this federally funded program has helped keep individuals and families safe and healthy through initiatives that assist families with energy costs, including home energy bills, energy crises, weatherization, and minor energy-related home repairs.
The Arizona Department of Economic Security (DES) administers the program for our state, collaborating with Community Action Agencies and other partners over the years to meet the needs of our diverse communities. While the program is meant to help families stay both warm in the winter and cool in the summer, the funding allocation that determines how much funding each state receives has historically prioritized cold-weather states. Arizona makes up a little more than 2% of the U.S. population, but typically less than 1% of the program’s funds.
Broader access to assistance will reduce the risk of heat-related illnesses and fatalities for low-income and vulnerable individuals and families. At DES, we understand how a high utility bill can disrupt a household's stability. This is where Power AZ steps in.
Power AZ is currently funded with an initial one-time $15 million investment. The Governor’s Fiscal Year 2027 Executive Budget requests an additional $15 million for the continuation of the program through the next fiscal year. Governor Hobbs has also proposed the creation of the Arizona Affordability Fund to establish a permanent funding source for this assistance after SFY27 and to help more families manage rising costs.
Power AZ Expands Eligibility for Utility Assistance
The most exciting part of Power AZ is that it opens the door to utility assistance for households who earned too much to qualify for LIHEAP. Here are the key things to know about Power AZ eligibility:
- Income Limit: Households may qualify for utility assistance if their household income is 100% of the State Median Income or below, which is $8,998 per month for a household of four.
- Households must also show that they require assistance to pay for energy-related utilities and meet citizenship or immigration requirements.
- Applicants may only receive benefits from either Power AZ or LIHEAP during the one-year eligibility period; not both.
Power AZ is administered just like LIHEAP, but with a higher income threshold and an adjusted benefit matrix. DES’s goal with Power AZ is to connect an individual or family to the relief they need to keep their homes cool in summer and warm in winter. The table below outlines the monthly gross income limits based on household size for LIHEAP and Power AZ.
| Household Size | LIHEAP Monthly Gross Income Limit - 60% State Median Income (SMI) or 150% Federal Poverty Level (FPL) | Power AZ Monthly Gross Income Limit - 100% State Median Income |
|---|---|---|
| 1 | $2,807, 60% SMI | $4,679 |
| 2 | $3,671, 60% SMI | $6,119 |
| 3 | $4,535, 60% SMI | $7,558 |
| 4 | $5,399, 60% SMI | $8,998 |
| 5 | $6,262, 60% SMI | $10,438 |
| 6 | $7,126, 60% SMI | $11,878 |
| 7 | $7,288, 60% SMI | $12,148 |
| 8 | $7,450, 60% SMI | $12,418 |
| 9 | $7,612, 60% SMI | $12,688 |
| 10 | $8,143, 150% FPL | $12,957 |
| 11 | $8,831, 150% FPL | $13,227 |
| 12 | $9,518, 150% FPL | $13,497 |
| Each Additional Household Member over 12 | $687, 150% FPL | $356 |
Once an application is received, the household will be considered for either LIHEAP or Power AZ eligibility, based on household income. The maximum benefit for both Power AZ and LIHEAP is up to $640 for standard assistance. A household that has received a shut-off notice or whose utility bill exceeds the standard benefit may qualify for an additional one-time crisis payment of up to $500. Crisis assistance may be awarded once per twelve-month eligibility period, based upon need. Benefit amounts are determined based on factors such as income and energy usage. In most cases, benefits are paid directly to utility providers on behalf of eligible households.
Accessing Support Through the DES A-to-Z Arizona Portal
Applying for utility assistance through either LIHEAP or Power AZ can be completed via the DES A-to-Z Arizona Portal with one application.
Families can take advantage of A-to-Z Arizona to explore a variety of services, apply for programs such as child care assistance, and manage their benefits all in one convenient location. By using A-to-Z Arizona for applications, you can easily track your status updates, upload necessary documents, and view important pre-notifications.
The portal provides a user-friendly interface that ensures information is easily accessible and comprehensible. By offering a wide range of resources and support options, A-to-Z Arizona empowers families to take control of their well-being, ensuring they can focus on what truly matters. Whether it’s securing financial assistance for essential utilities or obtaining aid for child care, the portal stands as a valuable tool in fostering stability and resilience within the community.
Fulfilling the Arizona Promise by Making Arizona More Affordable
The launch of Power AZ is a significant milestone in how DES supports Arizona households facing the growing pressure of rising energy costs and the broader affordability challenge. This $15 million investment is a direct commitment to the health and safety of our community.
By providing financial assistance to those in need, Power AZ aims to alleviate the burden on families struggling to make ends meet. The program offers targeted support to lower-income households, helping them manage their utility bills and improve energy efficiency in their homes.
Through Power AZ, the state reaffirms its commitment to its residents, investing in programs that build resilience and promote well-being. As Arizona continues to grow and evolve, initiatives like these pave the way for a brighter, more sustainable future for all.