Arizona utility to pay customers over $24 million in settlement

PHOENIX – The largest supplier of electricity in Arizona has agreed to pay more than $24 million to customers who were given inadequate information when choosing their plans.

About 210,000 customers of Arizona Public Service will be reimbursed $98, the Arizona Attorney General’s Office said Monday.

Another 17,500 customers will receive payments adding up to $3.3 million.

APS CEO Jeff Guldner said in a press release that moving all its customers to new rate plans was a “major undertaking and there are areas where we could have done better.

“This agreement acknowledges that and recognizes our commitment to inform customers of their service plan options and to provide effective tools and resources for choosing the one that’s right for them.”

The largest group went on new pricing plans in 2019 that weren’t the cheapest available based on recommendations from an online calculating tool.

As of March 2020, those customers would have saved at least $120 in the previous 12 months had they been on a different plan.

Investigators also learned some customers were misled by letters from the utility suggesting cheaper plans in 2017. The amounts each customer receives will depend on their likely overpayments but the average is $188.

The power company had already made restitution to customers for rate tool errors, the Attorney General’s Office said.

Attorney General Mark Brnovich told KTAR News 92.3 FM checks would be sent out within the next four months, “that way consumers can directly do with it what they want.”

APS serves 1.1 million residential customers in 11 of 15 Arizona counties. It did not admit wrongdoing in reaching the settlement, which requires court approval.

KTAR News 92.3 FM’s Peter Samore and The Associated Press contributed to this report.

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