Some customers of Arizona Public Service (APS) should be on the lookout for settlement checks related to the company’s failure to inform customers adequately regarding the benefits of switching to their most economical plan.
APS is sending the refund checks as part of an Arizona Attorney General’s Office Consent Agreement. Over the course of the next few weeks consumers will receive small checks from the $24 million agreement.
Those receiving payments include approximately 210,000 consumers who were not on their most economical rate plan for electric utility service, and an additional 15,000 consumers impacted by a 2017 letter that contained a data error. Eligible consumers either will receive a $98 check if they were not on their most economical rate plan or varying restitution if they were impacted by the 2017 letter.
All consumers receiving restitution also will receive a letter from the Attorney General’s Office confirming the settlement and that the checks are valid.
The $24 million in restitution is a result of a consent agreement APS reached with the Arizona Attorney General’s Office (AGO) in February 2021, which alleged that:
- APS did not inform customers adequately regarding the benefits of switching to their most economical plan.
- Additional APS customers may have been affected by a data error that impacted letters recommending the Saver Choice plan as the most economical plan in late 2017.
Corresponding to the allegations, the consent agreement allocates the refunds as follows:
- $20.7 million to up to 210,000 consumers who APS estimates were not on their most economical plan as of the March 2020 billing cycle and could have saved $120 or more over the previous 12 months. This group of consumers will receive $98.
- Up to $3.3 million to approximately 17,500 consumers who may have been affected by the data error in the 2017 letters. This group of consumers will receive a varying restitution payment based on the likely effect on the consumer resulting from the data error.
Recipients should deposit or cash checks within 90 days. No further action is required on the recipient’s part. Residential customers who have questions about the refunds or about whether they are on their most economical plan should call APS directly at 602-371-7171 in metro Phoenix (800-253-9405 other areas).
As a requirement of the consent agreement, APS has posted frequently asked questions (FAQs) and answers providing customers information about APS’ rate plans, on-peak and off-peak hours, and demand pricing, as well as rebates and cost-saving tips. Read FAQs here.