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Big Arizona utility to pay overcharged customers $24 million

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Posted at 6:07 PM, Feb 22, 2021
and last updated 2021-02-23 10:48:55-05

PHOENIX (AP/KGUN) — Arizona's largest electric utility will pay $24 million to about 225,000 customers who were placed on new pricing plans that were not their cheapest available option after a 2017 rate increase approved by the state's utility regulators.

The settlement agreed to by Arizona Public Service was announced Monday by Arizona Attorney General Mark Brnovich.

The attorney general launched an investigation after reports showed an online calculation tool customers used to choose their cheapest plan was giving erroneous recommendations.

Investigators later learned some customers were misled by letters from the utility suggesting cheaper plans.

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The Arizona Attorney General's Office says customers who are eligible for the funds are those who were not on their "most economical plan" as of March 2020 and could have saved an estimated $120 or more on a different plan.

Other customers who may receive restitution are those who may have been impacted by a data error in the recommendation algorithm.

The restitution will be provided by APS in the form of checks or possibly bill credits, the Attorney General's Office said, and should be incoming within four months of the court's approval of the restitution agreement.

The Attorney General's Office recommends those with questions about their current plan visit aps.com or call APS directly at 602-371-7171 or 800-253-9405.