2023-03-07 13:41:51 ET
An Arizona appeals court ruled that utility Pinnacle West Capital ( NYSE: PNW ) can increase can its rate of return to 8.9% from 8.7% and and approved costs that had been disallowed for Selective Catalytic Reduction equipment.
The Arizona Court of Appeals made the decision on Tuesday, according to a court filing. The ruling partially overturned an October 2021 ruling where there Arizona Corporation Commission proposed cutting the return for the company's utility, Arizona Public Service, to 8.7%, down from the utility's request of 10%. The ruling on Tuesday also allowed for costs for the Arizona SCR projects, which included the Four Corners coal plant. The original costs for the project were $215 million.
The Arizona appeals court vacated the decision's 20-basis point return on equity reduction and vacated the SCR disallowance and was remanded for further proceedings, according to the court filing.
Pinnacle West ( PNW ) fell 1.8% in trading on Tuesday.
The original court decision on Oct. 4, 2021, sent Pinnacle west ( PNW ) shares down 8%, leading Guggenheim to cut the utility to a sell and other analysts also cut the utility's rating due to Arizona regulatory risk in months after the ruling, including Barclays cutting PNW to sell in April.
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Pinnacle West Capital gets minor victory in Arizona utility case