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AZ AG Secures $7M APS Settlement Over Heat Shutoffs, Rate Disclosures

  • Arizona AG Kris Mayes reached a proposed settlement with Arizona Public Service Company to resolve allegations that the utility violated the Arizona Consumer Fraud Act through its extreme-heat disconnection practices and rate-plan disclosures.
  • According to the complaint, the case followed an incident in which APS disconnected a residential customer’s electric service during extreme heat after ending its voluntary 95-degree hold on residential shutoffs. The customer was found dead in her home shortly thereafter.
  • The complaint also alleges APS failed to regularly disclose to customers enrolled in its Saver Choice Plus plan, including the deceased customer, material information about potentially cheaper rate plans and the possible savings associated with those alternatives.
  • Under the proposed consent judgment, APS will pay $2.75 million to the state, up to $250,000 in attorneys’ fees, fund a $1 million consumer assistance and education program, and spend $3.4 million on programmatic improvements. APS also agreed to reinstate its 95-degree hold, maintain its 32-degree cold-weather hold, add text disconnection alerts, strengthen its Safety Net program, and send annual rate plan comparison letters to its Saver Choice Plus customers.