PHOENIX – In a decisive move, Arizona’s largest utility has pledged to halt power disconnections for unpaid bills whenever temperatures soar to 95 degrees Fahrenheit (35 degrees Celsius) or higher. This agreement is part of a $7 million settlement following the tragic 2024 death of an 82-year-old woman, Attorney General Kris Mayes announced on Wednesday.
The settlement with Arizona Public Service (APS) revises previous regulations that prohibited power shutoffs from June 1 to October 15. The new terms require APS to contribute $2.7 million to a state consumer protection fund and invest another $3.4 million into enhancing a program aimed at preventing shutoffs. This includes enabling customers to appoint family members or friends as emergency contacts, who will receive notifications, and sending text alerts about overdue bills and impending disconnections.
The lawsuit, spearheaded by Mayes’ office, stemmed from concerns regarding disconnection practices during extreme heat conditions. This was highlighted by the unfortunate passing of Katherine Korman in her Sun City West home.
Korman’s power was disconnected in mid-May 2024 due to nonpayment, on a day when temperatures reached a sweltering 99 degrees Fahrenheit (37 degrees Celsius). Tragically, she was discovered deceased six days after losing electricity.
APS reported making 10 attempts to reach Korman via phone calls, emails, door hangers, and monthly bill notices to update her about her account status and available assistance. The utility stated that regulatory reviews confirmed APS complied with rules regarding customer outreach and disconnection.
In response to the settlement, Mayes emphasized, “No Arizonan should be at risk because they cannot afford their electric bill. This agreement guarantees that APS will keep the power on during dangerous temperatures, irrespective of the calendar date.”
APS, which didn’t acknowledge any wrongdoing as part of the settlement, said in a statement that it already met or exceeded state laws and regulations in its disconnection policies and customer communications. “Our entire team at APS prioritizes customer safety and cares deeply about the well-being of our customers and community,” the utility said. The agreement specifies the payments from the settlement must come APS shareholder funds and that they can’t be recovered through future rate cases or surcharges.
“If APS wants to spend additional shareholder funds, it is free to do so,” Douglas Clark, executive director of the Arizona Corporation Commission, said in a statement. “The consent agreement makes it clear that this payment is outside the regulatory framework and will not be passed on to ratepayers.”
Maricopa County, which includes the city of Phoenix, confirmed 430 heat-related deaths last year, a decrease from 608 in 2024 and 645 in 2023. The county’s first confirmed heat-related death in 2026 was announced last week.
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