Arizona Attorney General Kris Mayes announced on Apr. 15 a $7 million settlement with Arizona Public Service Company (APS), the state’s largest electric utility, following an investigation into its disconnection practices during extreme heat. The agreement resolves allegations that APS violated the Arizona Consumer Fraud Act by disconnecting power for nonpayment without adequate safeguards in place.
The settlement is significant because it addresses concerns about consumer safety during periods of dangerous temperatures. The case was prompted in part by the death of Katherine Korman, whose electric service was disconnected remotely on May 13, 2024, when temperatures reached approximately 99 degrees Fahrenheit. She was found deceased six days later; however, the cause of her death was not determined as part of this action.
Under the terms filed in Maricopa County Superior Court, APS will pay $2.75 million to the state’s Consumer Protection–Consumer Fraud Revolving Fund and up to $250,000 for attorneys’ fees. Additionally, APS will provide $1 million in credits to eligible customers facing service termination before September 1, 2026, and invest over $3 million in program improvements and outreach efforts. These include reinstating a policy that halts disconnections when forecasts predict temperatures at or above 95°F outside of the June through mid-October moratorium period and maintaining protections against shut-offs during freezing weather.
“No Arizonan should be put at risk because they cannot afford their electric bill,” said Attorney General Mayes. “This settlement ensures that APS will no longer disconnect power based on the date on the calendar alone — if temperatures are dangerous, the power stays on.”
The consent judgment also requires improved customer notifications through text alerts and enhancements to emergency notification systems for designated third parties. APS is further encouraged to urge other utilities such as SRP and Tucson Electric Power to adopt similar policies regarding extreme weather holds.
The Arizona Attorney General’s Office serves as Arizona’s chief legal office with statewide responsibilities for legal and protective services according to its official website. It addresses issues such as elder abuse, civil rights violations, unsolved crimes through its cold case unit according to its official website, participates in federal lawsuits supporting fair housing and accountability measures for social media companies according to its official website, and delivers comprehensive advocacy across communities according to its official website. Kris Mayes is Arizona’s 27th attorney general and is noted as being the first mother elected to this position according to its official website.
All payments under this settlement must come from shareholder funds rather than ratepayers.
