Arizona Utility Agrees to Halt Power Shutoffs During Extreme Heat

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Arizona's largest utility, Arizona Public Service (APS), has agreed to a $7 million settlement with the state that prohibits it from cutting off power to customers for nonpayment when temperatures are forecast to reach 95°F (35°C) or higher. The settlement comes after the 2024 death of an 82-year-old woman, Katherine Korman, whose power was disconnected during an extreme heat wave.

Why it matters

This settlement aims to protect vulnerable residents, like the elderly, from the potentially deadly consequences of losing power during dangerously hot weather. It highlights the growing awareness of the public health risks posed by extreme heat events, which are becoming more frequent and severe due to climate change.

The details

Under the terms of the settlement, APS must pay $2.7 million into a state consumer protection fund and $3.4 million to improve a program that allows customers to designate emergency contacts to receive disconnection notices. The utility must also refrain from shutting off power when temperatures are forecast to reach 95°F (35°C) or higher, going beyond the previous prohibition on shutoffs between June 1 and October 15. Regulators determined that APS had followed existing rules in Korman's case, but the state argued that the rules were insufficient to protect public health.

• In mid-May 2024, Katherine Korman's power was disconnected due to nonpayment on a day when the temperature reached about 99°F (37°C).
• Six days after her power was cut off, Korman was found dead in her Sun City West home.

What’s next

The settlement specifies that the $7 million in payments from APS must come from shareholder funds and cannot be recovered through future rate cases or surcharges, ensuring that the costs are not passed on to ratepayers.