APS pays $7 million settlement, adjusts disconnection policy following customer’s death

PHOENIX — The Arizona Public Service Company agreed to pay a $7 million settlement and adjust its disconnection nonpayment policy after a customer died in 2024.

The Arizona Attorney General’s Office had accused APS of violating the Arizona Consumer Fraud Act following an investigation into the state’s largest electricity utility’s disconnection practices.

APS will no longer disconnect service for nonpayment if it's 95 degrees or hotter. The state's largest electricity utility will pay a $7 million settlement over allegations it violated the Arizona Consumer Fraud Act. @KTAR923 pic.twitter.com/MitUXRotXO

— Heidi Hommel (@heidi_hommel) April 15, 2026

APS customer died after power cut in 99-degree heat

That investigation found APS customer Katherine Korman had her power turned off in May 2024 for nonpayment when it was about 99 degrees. Korman was found dead in her home six days later.

Arizona Attorney General Kris Mayes said the utility had discontinued its voluntary 95-degree disconnection hold practice three days before Korman’s service was turned off.

“APS will no longer disconnect power based on the date on the calendar alone. If temperatures are dangerous, the power stays on,” said Mayes at a Wednesday press conference.

In a press release, APS said it would maintain its existing calendar-based hold period between June 1 and October 15 and bring back its temperature-specific disconnection hold of 95 degrees or hotter outside of that time frame.

“Anything other than 95 degrees is dangerous and can kill people,” said Mayes.

APS will encourage other Arizona utilities to not disconnect power for nonpayment when the forecast projects temperatures of 95 degrees or hotter.

“And if somebody dies on their watch with a date-based policy, we’re coming after them too,” said Mayes about the other utilities.

How the settlement money will be used

$1 million from the settlement will be used as credits to eligible customers with outstanding balances.

More than $3 million will go toward consumer protection improvements like adding the temperature-based policy for account shut-offs.

And $2.75 million will go into the state’s Consumer Protection-Consumer Fraud Revolving Fund, in addition to $250,000 in attorney fees.

All payments come from the APS shareholders fund, not ratepayers.

APS agrees to changes, denies wrongdoing

APS admits no wrongdoing as a result of the settlement.

“While we have chosen to resolve this matter by adopting enhancements that benefit our customers, APS rejects the Attorney General’s assertions regarding our existing disconnection policies and customer communications, which already meet or exceed all applicable state laws and regulations,” said the utility in a statement. “Our entire team at APS prioritizes customer safety and cares deeply about the well-being of our customers and communities.

“We remain committed to maintaining best-in-class customer support and education programs and are taking action to further strengthen our policies, assistance initiatives and communications. Our focus is on helping customers stay informed, connected and supported, especially in times of need.”

The utility has also agreed to enhance customer notifications for disconnection by now including text messages.

It is also expanding its Safety Net Program and encourage customers to designate an emergency contact on their account who will also be notified about potential shut-offs due to past due bills.

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