These firms believe the regulatory environment remains challenging in Arizona, which can create long-term risks in cost recovery for Arizona Public Service (APS), PNW's regulated electric utility. These firms remain concerned with the settlement agreement Arizona Public Service (APS) and interveners, and believe lack of earnings visibility till FY12 will hamper PNW’s growth. Moreover, these firms believe increasing operations and maintenance cost is a major concern and will put pressure on margins in the near term.