PINNACLE WEST CAPITAL CORP (PNW)

Pinnacle West is a holding company that derives essentially all of its revenues and earnings from its wholly-owned subsidiary, Arizona Public Service Company (APS), a vertically-integrated electric utility providing retail or wholesale electric service to most of Arizona, excluding portions of Phoenix, Tucson, and Mohave County. Other subsidiaries include El Dorado, PNW Power, and 4CA, while BCE was sold in January 2024. The company's single reportable segment is regulated electricity, encompassing generation, transmission, and distribution primarily serving Native Load customers.

APS serves approximately 1.4 million customers and owns or leases 6,491 MW of regulated generation capacity, supplemented by long- and short-term purchased power agreements; no single customer accounted for more than 2.1% of 2023 electric revenues. In 2023, roughly 51% of APS's energy supply came from clean sources (nuclear, renewables, and demand-side management). APS has committed to a Clean Energy Commitment targeting 100% carbon-free electricity by 2050, a 65% clean energy mix (45% renewable) by 2030, and a full exit from coal-fired generation by 2031.

The company's generation portfolio includes a 29.1% ownership/leasehold interest in the three-unit Palo Verde nuclear plant (1,146 MW entitlement), six natural gas plants and two oil-only plants (3,573 MW entitlement), and coal facilities including Four Corners (970 MW entitlement, committed to exit by 2031), Cholla (381 MW, ending coal use in 2025), and the now-closed Navajo Plant. APS has been expanding renewable resources through the AZ Sun Program and other solar, wind, geothermal, biomass, and biogas projects, with a total renewable portfolio of 5,010 MW (3,072 MW operating, 1,938 MW under development), plus growing energy storage capacity (272 MW in operation, 2,221 MW planned/under development by 2026). The company faces ongoing legal and regulatory matters related to spent nuclear fuel storage and DOE contract disputes, nuclear decommissioning funding, coal mine reclamation obligations, and infrastructure resiliency investments to address climate-related risks such as wildfires and extreme weather.