Arizona Utility Agrees to New Terms on Power Disconnection Amid Heat Concerns
Arizona’s largest utility company, Arizona Public Service (APS), has reached a $7 million settlement, agreeing not to cut off electricity for customers unable to pay their bills when temperatures soar to 95 degrees Fahrenheit (35 degrees Celsius) or higher. This agreement follows a tragic incident involving the death of an 82-year-old woman, Katherine Korman, whose power was shut off during extreme heat, according to Attorney General Kris Mayes.
The settlement modifies APS’s previous policy that prohibited disconnections from June 1 to October 15 due to nonpayment. As part of this agreement, APS will deposit $2.7 million into a state consumer protection fund and allocate an additional $3.4 million to enhance a program that allows customers to nominate family members or friends as emergency contacts. This program aims to prevent shutoffs by sending text notifications of overdue bills and disconnection warnings.
The legal action against APS was partly prompted by concerns about disconnection practices in extreme weather conditions, highlighted by the circumstances surrounding Korman’s death. Her electricity was terminated in mid-May 2024 when temperatures reached approximately 99 degrees Fahrenheit (37 degrees Celsius). She was discovered deceased six days after the service disconnection.
In response, APS stated that it had made 10 attempts to inform Korman about her billing status through various channels, including phone, email, door hangers, and monthly bills, and offered assistance. Regulatory authorities determined that APS adhered to the rules regarding customer outreach and disconnection.
Attorney General Mayes emphasized, “No Arizonan should be at risk because they cannot afford their electric bill. 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.”
Although APS did not admit to any wrongdoing in the settlement, the company affirmed its compliance with state laws and regulations concerning disconnection policies and customer communication. “Our entire team at APS prioritizes customer safety and cares deeply about the well-being of our customers and community,” the utility stated. The agreement also ensures that the settlement funds will come from APS shareholder resources and will not impact future rate cases or surcharges.
Douglas Clark, executive director of the Arizona Corporation Commission, clarified, “If APS wants to spend additional shareholder funds, it is free to do so. The consent agreement makes it clear that this payment is outside the regulatory framework and will not be passed on to ratepayers.”
In related news, Maricopa County, home to Phoenix, recorded 430 heat-related deaths last year, a drop from 608 in 2024 and 645 in 2023. The county recently confirmed its first heat-related death of 2026.
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