An arthroscopic cutting probe includes an elongated shaft assembly having a distal end, a proximal end, and a longitudinal axis therebetween. A working end at the distal end of the elongated shaft assembly includes a first active electrode and a second active electrode The shaft assembly is rotates the first electrode relative to the second electrode about the longitudinal axis, and a return electrode is carried on the shaft assembly proximal of the working end. The first and second active electrodes are electrically coupled to each other and electrically isolated from the return electrode.