APS agrees to $7 million settlement after Sun City West woman's heat-related death

Arizona Attorney General Kris Mayes has secured a $7 million settlement with the Arizona Public Service after an investigation into the utility's disconnection practices during extreme heat.

Mayes said the settlement resolves allegations against APS for violating the Arizona Consumer Fraud Act. 

"No Arizonan should be put at risk because they cannot afford their electric bill,” Mayes said. “This settlement ensures that APS will no longer disconnect power based on the date on the calendar alone — if temperatures are dangerous, the power stays on."

Mayes launched an investigation after 12News first reported about Sun City West homeowner Katherine Korman's death, an APS residential customer whose electric service was remotely disconnected on May 13, 2024, due to nonpayment. APS cut her power on a day the high temperature was 99 degrees. Korman was found dead six days later. Korman's family asked the Attorney General to look into circumstances surrounding Korman's death. 

RELATED: 82-year-old APS customer died after power was shut off in May 2024

Mayes credited 12News Journalist Joe Dana on Wednesday for bringing the incident to light. 12News reported the story after citizen activist Stacey Champion located public records detailing Korman's death. 

According to the settlement, APS will pay $2.75 million in monetary relief (in addition to attorneys’ fees), provide $1 million in credits to eligible consumers with outstanding balances, and invest $3.1 million in consumer protection improvements. The agreement includes APS changing from a date-based shut-off policy to a temperature-based policy. The utility will not shut off power when it is 95 degrees outside. The agreement does not address reconnections.

RELATED: 82-year-old APS customer died after power was shut off in May 2024

"APS had discontinued its voluntary 95-degree hold practice — under which it had previously refrained from disconnecting service during extreme heat — just three days before Ms. Korman's service was cut off," Mayes said.

APS maintains they followed their shut-off notification policies, and those exceeded Arizona law. Mayes said the investigation does not directly blame APS for Korman's death, but rather addresses policies to protect consumers in the future and give them greater leeway. 

“My view is, it is better to be alive than to owe a bill," Mayes said.

According to Maricopa County Medical Examiner records, the 82-year-old Korman's underlying "cause of death" was complications from alcohol use and the "manner of death" was an accident caused by "exposure to elevated temperatures." Heart disease was also listed as a contributing factor. A neighbor of Korman said she did not mention having financial troubles or being behind on her bills. APS said they left a door handle notification at Korman's home and made ten total attempts to reach her about nonpayment.

After the AG's announcement, APS released the following statement:

"While we have chosen to resolve this matter by adopting enhancements that benefit our customers, 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."

APS says they remain committed to providing "best-in-class customer support and education programs."

According to the settlement, the $7 million must be funded through APS shareholder dollars. APS is a regulated monopoly and publicly traded company.

The new shut-off policy comes after consumer advocates tried for years to get a similar measure passed at the state legislature and the Arizona Corporation Commission.

“For many years the data has told us a temperature-based shut off bans are better than a date-based rule," Champion said. "I'm grateful the Attorney General got this done. It puts health and safety above corporate greed.”

Champion also worked on Mayes' political campaign.

A previous 12News analysis found that Valley-wide, 138 people died of heat-related incidents indoors in 2024. Most of them had air-conditioning that was not functional. Thirteen died in homes where the electricity service was shut off.