With Arizona summers growing hotter and energy bills climbing alongside them, Governor Katie Hobbs and the Arizona Department of Economic Security have launched a new state-funded utility assistance program designed to reach tens of thousands of families who have previously fallen through the cracks of federal aid.
Power AZ, backed by a $15 million investment, expands eligibility for utility bill assistance significantly beyond what the federal Low Income Home Energy Assistance Program allows. Under the existing federal program, Arizona households can only qualify if their income falls at or below 60 percent of the state median income. Power AZ raises that ceiling considerably — a family of four earning up to $108,000 annually may now be eligible for help. The state estimates the expansion will make approximately 30,000 additional households eligible for assistance that they previously couldn’t access.
Households can receive up to $640 in aid, with benefit amounts determined based on a combination of income level, energy usage and household vulnerability. Applications are submitted through the DES A-to-Z Arizona Portal, where each submission is automatically evaluated for either LIHEAP or Power AZ eligibility depending on the applicant’s income.
The timing is deliberate. Arizona has recorded increasingly extreme summer temperatures in recent years, and the cost of keeping a home cool during months of triple-digit heat has become a genuine financial burden for middle- and lower-income families. Hobbs framed the program in stark terms, noting that in Arizona, the ability to afford air conditioning can be a matter of survival.
The governor’s proposed Fiscal Year 2027 budget would make the initial $15 million investment permanent through the creation of a new Arizona Affordability Fund — a signal that Power AZ is intended as an ongoing commitment rather than a one-time measure.
Arizonans can find eligibility information and apply through the DES portal at the state’s official website.
