Arizona Public Service $7M Settlement

Pinnacle West Capital (APS), the largest utility in United States — Arizona, has agreed to a $7 million settlement in a lawsuit initiated by Attorney General Kris Mayes. The lawsuit was prompted by concerns over power disconnection practices during extreme heat, particularly following the 2024 death of 82-year-old Katherine Korman, whose power was cut off on a 99-degree day due to nonpayment. As part of the settlement, APS will no longer disconnect electrical service for nonpayment when temperatures are 95 degrees Fahrenheit or above. The agreement also includes a $2.7 million payment to a state consumer protection fund and a $3.4 million investment to improve customer communication and emergency contact programs. APS, while denying wrongdoing, stated it already met or exceeded state regulations. The settlement specifies that payments must come from APS shareholder funds and cannot be recovered through future rate cases. Attorney General Kris Mayes has called for the United States — Arizona Corporation Commission and the Legislature to codify this 95-degree limit into state law and regulation, and is investigating other utilities like Salt River Project.