ICYMI: AG Mayes Secures $7 Million Settlement with APS Over Dangerous Disconnection Practices

PHOENIX—Yesterday, Arizona Attorney General Kris Mayes announced a $7 million settlement with Arizona Public Service (APS) following an investigation into the utility’s disconnection practices during extreme heat—including the death of APS customer Katherine Korman, whose power was shut off for nonpayment on May 13, 2024, when temperatures in her area reached approximately 99 degrees. She was found dead at her home six days later.

Under the settlement, APS must reinstate its voluntary 95-degree hold on residential disconnections, shift from a date-based to a temperature-based shutoff policy, provide $1 million in bill credits to customers at risk of service termination, and fund $3.1 million in consumer protection improvements. All payments must come from APS shareholder funds — ratepayers cannot be charged.

Statement from Diali Avila, Arizona Director, Climate Power:

“This settlement is about accountability, and it should put every utility in Arizona on notice: cutting corners on customer safety during extreme heat isn’t a business decision, it’s a public health crisis. At a time when utility prices are rising and working families are being asked to pay more, customers deserve reliability and basic protections. Attorney General Mayes did the right thing here, and utilities should understand that it’s not only the AG watching, customers across the state are paying attention too.”

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