Gov. Katie Hobbs launches $15M utility assistance program for working families

PHOENIX — Gov. Katie Hobbs on Tuesday launched a $15 million utility assistance program aimed at helping tens of thousands of Arizona families manage rising energy costs.

The initiative, called Power AZ, expands eligibility beyond existing federal assistance programs. A family of four earning up to $108,000 annually could qualify for aid, compared with the federal Low Income Home Energy Assistance Program, which caps eligibility at 60% of the state median income.

State officials estimate the program will help 30,000 households that don’t qualify for federal assistance.

“In Arizona, energy assistance can mean life or death during extreme heat,” Hobbs said in a press release. “Families shouldn’t have to choose between keeping their home safe and cool and putting food on the table.”

Eligible households can receive up to $640 in assistance. Benefit amounts are determined by income, vulnerability and energy usage.

Hobbs wants to make utility assistance program permanent

The governor’s fiscal year 2027 budget proposal seeks to make the funding permanent through creation of an Arizona Affordability Fund.

“As Arizona’s weather continues to shatter records, this investment is welcome news for Arizonans anticipating higher energy costs from keeping their homes cool during extreme summer temperatures,” director of the Department of Economic Security Michael Wisehart said.

Kelly McGowan, executive director of Phoenix-based rental assistance group Wildfire, praised the expansion.

“Energy costs are rising faster than inflation, and we’re seeing the impact firsthand as more Arizona families struggle to keep up,” McGowan said.

Arizona’s energy costs remain below the national average, according to data from the Energy Information Administration.

Families can apply for the program on the state’s A-to-Z Portal and find more information on the program here.

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