Pinnacle West Capital $7M Settlement on Disconnections
Analysis based on 12 articles · First reported Apr 15, 2026 · Last updated Apr 15, 2026
The settlement will likely lead to increased operational costs for Pinnacle West Capital Corporation===Pinnacle West Capital due to the new disconnection policies and settlement payments, potentially affecting its profitability. It also sets a precedent for other utilities in United States===Arizona, like Salt River Project, to adopt similar temperature-based disconnection rules, which could impact the broader utilities sector.
Pinnacle West Capital Corporation===Pinnacle West Capital (APS), the largest utility in United States===Arizona, has reached a $7 million settlement with the state's Attorney General, Kris Mayes. This agreement stems from a lawsuit prompted by the 2024 death of 82-year-old Katherine Korman, whose power was disconnected during a heatwave. Under the settlement, Pinnacle West Capital Corporation===Pinnacle West Capital will no longer cut off electrical service for nonpayment when temperatures are 95 degrees Fahrenheit or above. The utility will pay $2.7 million into a state consumer protection fund and invest $3.4 million to enhance a program for emergency contacts and improve customer notifications, including text alerts for overdue bills. While Pinnacle West Capital Corporation===Pinnacle West Capital denies wrongdoing, the settlement aims to prevent future tragedies and improve customer safety during extreme heat, a growing concern in United States===Maricopa County, Arizona.
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