APS settles with Arizona AG, make reforms after Sun City heath-related death

PHOENIX - On April 15, Arizona Attorney General Kris Mayes announced a massive settlement with utility firm APS, following the death of an 82-year-old woman.

The backstory:

APS customer Kate Korman was found dead in her Sun City home in May 2024. Six days prior, Korman's power had been remotely disconnected on a 99-degree day due to non-payment.

Korman was more than three months behind on her electric bill.

Family Weighs In:

"She died baking in the heat of her own home," said Korman's son, Jonathan Korman.

Korman’s family blames the utility company for contributing to Korman's death, after the medical examiner said heat was a factor in her death.

"My mother died because APS decided on a policy which puts people at risk," Jonathan said.

What AG Mayes Said:

Just three days before Korman's service was cut off, APS had discontinued its voluntary 95-degree hold practice, which kept it from disconnecting during extreme heat.

Attorney General Mayes says Korman’s power should have never been disconnected.

"No utility operating in this state should be allowed to cut off someone's power on a 99-degree day because of an unpaid bill. Kate Korman deserved better," Mayes said.

Big picture view:

Mayes announced a $7 million settlement with APS as a result of her office’s investigation into the case.

"We have reached a settlement that helps hold the utility accountable to its customers and delivers real change," Mayes said.

While APS has not admitted or agreed to liability or fault through the settlement to resolve allegations of violating the Arizona Consumer Fraud Act, the utility company must now stop all disconnections when it is 95 degrees or hotter, regardless of the calendar date. The utility is also putting $1 million toward customer bill relief for those most vulnerable, and must now use text alerts to warn families and emergency contacts before a shut-off happens. APS shareholders, not customers, are picking up the entire tab.

"The intent was to protect other people from experiencing what we experienced," Jonathan Korman said. "So this is very exciting to see, having the AG's office support us in doing things that we simply could never have been able to do."

As for other utility companies, Mayes issued this warning.

"Those utilities that are not following the 95-degree hold policy, they are on notice," Mayes said. "And if somebody dies on their watch with a night with a date based policy, we're coming after them too."

Korman's family says nothing can bring their mother back, but these changes will help make sure nothing like this happens to anyone else.

The other side:

APS officials have released a statement that reads:

"APS rejects the Attorney General’s assertions regarding our existing disconnection policies and customer communications, which already meet or exceed all applicable state laws and regulations. Our entire team at APS prioritizes customer safety and cares deeply about the wellbeing of our customers and communities."