Arizona’s Power Company Agrees to Settlement Over Thermal Outages
Arizona’s largest utility, Arizona Public Services (APS), has reached a settlement of $7 million to resolve a lawsuit that arose partly due to the death of an 82-year-old woman during a power outage in 2024. The Attorney General, Chris Mays, announced that the company has agreed not to cut off electric service for unpaid bills when temperatures are expected to surpass 95 degrees Fahrenheit (approximately 35 degrees Celsius).
Previously, APS had a prohibition on shutting off services for nonpayment from June 1 to October 15. Under the new settlement terms, $2.7 million will go into the state’s consumer protection fund, while an additional $3.4 million will be used to enhance a program allowing customers to list a friend or family member as an emergency contact for notifications about account issues, including text alerts for late bills and potential disconnections.
Mays’ office indicated that concerns over disconnection practices during extreme temperatures led to the lawsuit, particularly focusing on the incident involving Katherine Corman, who died in her home in Sun City West. It was reported that her service was cut off in mid-May 2024 when temperatures reached about 99 degrees (37 degrees Celsius).
After her power was disconnected, she was discovered dead six days later.
APS stated it had made multiple attempts—ten, to be exact—through phone calls, emails, door hangers, and regular billing to notify Corman about her bill and to offer assistance. However, regulators concluded that APS had complied with the established rules for contacting and disconnecting customers.
In Mays’ words, “Arizonans who can’t pay their electricity bills shouldn’t be at risk.” She added that with this agreement, APS would no longer perform disconnections merely based on calendar dates, but would consider the weather conditions, especially during dangerous heat waves.
In a separate note, APS did not admit to any wrongdoing in the settlement, asserting that it already aligns with state regulations regarding disconnections and communication with its customers.
The agreement specifies that this settlement is to be funded by APS shareholders and won’t be recouped through any future charges passed to customers.
Douglas Clark, Executive Director at the Arizona Corporation Commission, mentioned, “If APS wants to use additional shareholder funds, they are free to do so.” He clarified that the consent agreement states this payment is outside standard regulatory channels and will not affect ratepayers.
Regarding last year’s climate impact, Maricopa County, which includes Phoenix, recorded 430 confirmed heat-related deaths, a decrease from 608 in 2024 and 645 in 2023. Just last week, the county recorded its first heat-related fatality of 2026.
