Arizona Public Service Co. will pay tens of thousands of customers a cut of $24 million in an agreementover a billing issue revolving the utility's rate structure implemented nearly four years ago.
The deal, announced by Arizona Attorney General Mark Brnovich, has the state's largest utility paying the money to roughly 225,000 customers for not having the customers on the rate plan that would have cost them the least.
"Today's historic and consequential settlement provides $24 million t more than 200,000 Arizonans who may have relied on inadequate information from APS," Mr. Brnovich said in a statement.
APS received approval for a new rate structure in 2017 from the Arizona Corporation Commission. Under the plan, the utility was required to educate its 1.1 million customers about changes to its rate plans.
The challege was there was an error in APS' rate calculation tool that was recommending customers use plans that were costing them hundreds of dollars more per year. There also was a letter sent in 2017 to customers that may have impacted their plan choice.
Under the agreement, the money will be divided:
APS also will be required to cover the $200,000 cost of the investigation and another $550,000 to promote the Attorney General's Office's consumer and community outreach awarness and prevention programs.
Residential customers with questions about their rate plans should visit aps.com or call APS directly at 602-371-7171 or 800-253-9405.