The Arizona Corporation Commission did not have the power to cut APS profits over bad customer service.

So writes a trio of state appellate judges in an opinion reviewing the Commission’s 2021 decision in a rate case.

In review of the rate case, the Arizona Court of Appeals agreed with the way the Corporation Commission calculated the value of APS assets versus original costs.

And the judges agreed with the determination Commissioners made on how much APS should profit.

But they threw out the Commission’s move to cut profitability over bad customer service.

Plus the judges told the Commission to rethink if roughly $216 million APS pumped into federally required upgrades should be counted as money well-spent.

The upgrades were to a coal-fired power plant scheduled to close by 2031.

Editor’s note: This story has been updated to correct when the Four Corners Power Plant is scheduled to close.