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You surround a foe in a swirling storm of violent winds, roiling clouds, and crackling lightning. The storm deals 1d12 electricity damage. The target must attempt a basic Reflex save. On a failure, the target also is clumsy 2 for 1 round and takes 1 persistent electricity damage.

Is it no damage on a save? Half damage on a save? Is there no save for the damage?

To me, this sounds like the save does not stop the initial damage.

Considering the fact that this is 2 contradictory statements, it is indeed a mistake. There really isn't a way around this until paizo put out a clarification except to assume that one of them is a mistake. The likelihood is that the restored to 1HP is a mistake, but I would say, as a GM, just pick 1 that works for you and your group that you would enjoy most for the time being.

See this link as it's already been answered: https://paizo.com/threads/rzs42nf5?Heroic-Recovery-Question#8