PINNACLE WEST CAPITAL CORP (PNW)

Pinnacle West is an investor-owned electric utility holding company based in Phoenix, Arizona, with consolidated assets of approximately $30 billion. It derives essentially all of its revenues and earnings from its principal subsidiary, Arizona Public Service Company (APS), which has provided energy and energy-related products in Arizona since 1886. APS is Arizona's largest and longest-serving electric company and generates electricity in 11 of the state's 15 counties. The company's other active subsidiaries are El Dorado and PNW Power.

Pinnacle West has one reportable segment, regulated electricity, which covers traditional regulated retail and wholesale electricity businesses (primarily service to Native Load customers) and related activities, including generation, transmission and distribution. These activities are conducted primarily through APS. APS owns or leases 6,257 MW of regulated generation capacity and also holds long-term and short-term power purchase agreements for additional capacity. Its resources include nuclear, natural gas, oil, coal, solar, wind, geothermal, biomass, biogas and energy storage. Its largest facility is the Palo Verde nuclear plant, in which APS has a 1,146 MW entitlement. APS has six natural gas plants and two oil-only plants (3,722 MW combined entitlement), and 970 MW of entitlement at Four Corners. It also owns about 419 MW of solar and 201 MW of battery storage in operation, with more under development. It also purchases from third-party solar, wind, storage and distributed energy resources. Cholla's coal units were retired in 2025, and the Navajo Plant ceased operations in 2019. In 2025, about 58% of APS's energy supply came from clean resources, and it has an aspirational goal of carbon neutrality by 2050.

APS serves approximately 1.4 million customers across its Arizona retail service territory. In 2025, no single purchaser or user of energy accounted for more than 1.9% of electric revenues. Demand in Arizona continues to grow, and APS says it aims for top-quartile reliability among peers. It plans to add up to 2,000 MW of flexible natural gas generation and is investing in grid modernization, infrastructure hardening and wildfire mitigation.

APS operates Palo Verde, whose fuel cycle needs are largely contracted for the next several years. Palo Verde's NRC operating licenses run to 2045–2047. APS has long-term gas transportation agreements, and fuel oil is delivered by truck. NTEC, a company formed by the Navajo Nation, supplies coal to Four Corners under an agreement running through 2031, and the plant site is leased from the Navajo Nation through 2041. APS performs an integrated resource plan every three years, with the next due to the Arizona Corporation Commission in August 2026, and regularly issues competitive solicitations for new resources. APS is also pursuing litigation and settlement recoveries from the U.S. Department of Energy for its failure to accept spent nuclear fuel.