On our last Zoom call, we discussed the Hearing Officer's Recommended Opinion and Order in the APS Rate Case.  The judge rejected the company's request to put the Four Corners SCRs into rate base.  The Commissioners can, of course, amend the order to put the SCRs into rates, but it takes three votes to amend the order and there's a lot of inertia.   If the ACC adopts the  judge's recommendation, APS will not recover the investment of nearly $500 million. 

Here's what Fitch said:

The Negative Outlook reflects heightened regulatory risk in Arizona with an adverse outcome in APS's pending general rate case (GRC) being the main concern. A final order in APS's pending GRC consistent with a recent administrative law judge (ALJ) recommendation, which Fitch views as more onerous than previously expected, will be detrimental to credit quality and could lead to a one-notch rating downgrade at APS and parent Pinnacle West Capital Corp. (PNW, IDR: A-/Negative).