UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | Commission File Number | Exact Name of Each Registrant as specified in its charter; State of Incorporation; Address; and Telephone Number | IRS Employer Identification No. | | --- | --- | ...

Financial Data and Key Metrics Changes - For Q4 2022, the company reported a loss of $0.21 per share, down $0.45 compared to Q4 2021 [11] - Full-year 2022 earnings were $4.26 per share, down from $5.47 per share in 2021, primarily due to the negative rate case outcome [12][14] - The company experienced a $17.1 million impairment charge related to a Bright Canyon energy equity investment in Q4 2022 [36] Business Line Data and Key Metrics Changes - Customer growth for Q4 2022 was 2.1%, consistent with the full-year growth rate [13] - Weather-normalized sales growth for 2022 was 2.4%, with a 1.2% increase in Q4 compared to the prior year [38] - Strong commercial and industrial (C&I) growth of 4.6% over 2021 was noted, driven by Arizona's economic diversification [38] Market Data and Key Metrics Changes - Arizona had the fifth highest population growth in 2022, contributing to customer growth [13] - The Phoenix Metro area was recognized as a top three industrial market to watch in 2023, indicating strong economic activity [38] Company Strategy and Development Direction - The company aims to achieve a constructive outcome in its pending rate case and improve customer communication and engagement in 2023 [9] - A commitment to reach 100% clean carbon-free energy by 2050 was reiterated, with over 2,100 megawatts of clean energy resources procured [8] - The capital plan was updated to $5.3 billion from 2023 to 2025, with an average annual growth rate of 5% to 7% for rate base growth [40] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the unfavorable outcome of the previous rate case but expressed confidence in long-term value creation for customers and shareholders [9][11] - The company expects headwinds in 2023 from higher benefit expenses, interest expenses, and plant depreciation and amortization [14][15] - Management emphasized a focus on cost management and operational efficiencies to navigate inflationary pressures [14] Other Important Information - The pension plan is 106% funded, with no expected contributions needed in the near term, although higher benefit expenses are anticipated in 2023 [15] - The company is deferring any equity issuance until after the current rate case resolution [16] Q&A Session Summary Question: What is the outlook for future equity needs beyond the current rate case? - The company anticipates an equity need of $400 million to $500 million in 2024, dependent on the capital plan developed post-rate case [43] Question: How does the company plan to mitigate pension expense volatility? - Management is exploring regulatory recovery options and other cost levers to manage pension expenses effectively [57] Question: What is the impact of the Court of Appeals ruling on the Four Corners SCR and Ocotillo projects? - A favorable ruling would not be retroactive but could lead to recovery of disallowed capital costs, impacting EPS positively [50][52] Question: What is the company's strategy regarding clean generation spending? - The company is focused on optimizing the mix of utility-owned generation and power purchase agreements (PPAs) to maximize benefits from tax credits [58][72] Question: What is the feedback from rating agencies regarding credit outlook? - The company is committed to maintaining a 16% to 18% FFO-to-debt ratio to support its current ratings, with future adjustments dependent on the rate case outcome [66][80]

Financial Performance & Guidance - Full Year 2022 EPS was $426, primarily impacted by results of prior rate case, compared to $547 in 2021[13] - The company provides 2023 EPS guidance of $395-$415[21] - Adjusted gross margin for 2023 is projected to be $267 - $272 billion[21] - Adjusted operating and maintenance expense for 2023 is expected to be $885 - $905 million[21] Growth & Investment - Retail customer growth is projected at 15%-25%[21] - Weather-normalized retail electricity sales growth is forecasted at 35%-55%, including a 20%-40% contribution from new large manufacturing facilities and data centers[21] - The company plans a capital investment of $532 billion from 2023-2025[28] - The company projects steady rate base growth with 5-7% annual growth for FERC and ACC[32] Regulatory & Operations - A new rate case was filed on October 28, 2022, requesting a total revenue increase of $460 million and a customer net bill impact of 136% on day 1[93] - The company is targeting declining O&M per MWh, with total adjusted O&M expected to be $885M-$905M in 2023[42] - The company has contracted over 2,100 MW of clean energy and storage to be in service for APS customers by the end of 2025[62]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number charter; State of Incorporation; Address; and Telephone Number IRS Employer Identification No. 1-8962 PINNACLE WEST CAPITAL CORPORATION 8 ...

Financial Performance & Guidance - The company's 2022 EPS guidance is between $4.20 and $4.35[10] - Adjusted gross margin (operating revenues, net of fuel and purchased power expenses) is projected to be $2.59 – $2.61 billion[10] - Adjusted operating and maintenance expenses are expected to be $880 – $895 million[10] - Interest expense, net of allowance for borrowed and equity funds used during construction (AFUDC ~$64 million), is projected to be $213 – $215 million[10] Rate Case & Regulatory - A new rate case was filed on October 28, 2022, requesting rates to become effective December 1, 2023, seeking a total revenue increase of $460 million, which would result in a 13.6% customer net bill impact on day 1[19] - The rate case includes a request for $130 million in rate base growth and $140 million for 12 months post test year plant[19] - The company is appealing the prior rate case, with oral arguments set for November 30[45, 78] Growth & Investment - The company forecasts long-term EPS growth target of 5%-7%[14] - Retail customer growth is projected at 1.5%-2.5%[10, 13, 14] - Weather-normalized retail electricity sales volume is expected to be 2.0-3.0% higher compared to prior year, including a 0.5-1.5% contribution from new large manufacturing facilities and data centers[10] - The company plans a total capital investment of $4.7 billion from 2022-2024[25, 38] Clean Energy Transition - The company has contracted for nearly 1,600 MW of clean energy and storage to be in service for APS customers by the end of 2024[53, 56] - An All-Source RFP has been issued, seeking 1,000 – 1,500 MWs of resources, including up to 600 – 800 MWs of renewable resources to be in service from 2025 – 2027[53]

Pinnacle West Capital Corporation (NYSE:PNW) Q2 2022 Earnings Conference Call August 3, 2022 12:00 PM ET Company Participants Amanda Ho - Director-Investor Relations Jeff Guldner - Chairman & Chief Executive Officer Andrew Cooper - Chief Financial Officer Conference Call Participants Insoo Kim - Goldman Sachs Julien Dumoulin-Smith - Bank of America Nick Campanella - Credit Suisse David Peters - Wolfe Research Shar Pourreza - Guggenheim Partners Operator Good afternoon, ladies and gentlemen. Thank you for st ...

PINNACLE WEST farial fromling 1 POWERING GROWTH DELIVERING VALUE Second Quarter 2022 Results August 3, 2022 Forward Looking Statements This presentation contains forward-looking statements based on current expectations, including statements regarding our earnings guidance and financial outlook and goals. These forward-looking statements are often identified by words such as "estimate," "predict," "may," "believe," "plan," "expect," "require," "intend," "assume," "project," "anticipate," "goal," "seek," "str ...

[Part I — FINANCIAL INFORMATION](index=6&type=section&id=Part%20I%20%E2%80%94%20FINANCIAL%20INFORMATION) [Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited condensed consolidated financial statements for Pinnacle West and APS, including income, balance sheets, cash flows, and equity, with accompanying notes Pinnacle West - Condensed Consolidated Statements of Income (in thousands) | | Three Months Ended June 30, | Six Months Ended June 30, | | :--- | :--- | :--- | | | **2022** | **2021** | **2022** | **2021** | | **OPERATING REVENUES** | $1,061,669 | $1,000,249 | $1,845,200 | $1,696,724 | | **OPERATING INCOME** | $223,095 | $278,386 | $277,587 | $325,920 | | **NET INCOME** | $168,618 | $219,436 | $189,880 | $259,950 | | **NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS** | $164,312 | $215,697 | $181,268 | $251,338 | | **Diluted EPS** | $1.45 | $1.91 | $1.60 | $2.22 | [Combined Notes to Condensed Consolidated Financial Statements](index=21&type=section&id=Combined%20Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide detailed disclosures supporting financial statements, covering accounting policies, revenue, debt, liquidity, regulatory matters, and fair value measurements [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=69&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial condition and results, covering strategic initiatives, financial drivers, regulatory developments, operating results, liquidity, and market risks [Overview](index=69&type=section&id=Overview) This section outlines Pinnacle West's operations as Arizona's largest electric utility, its clean energy strategy, and key regulatory proceedings - APS has established a three-part clean energy goal: - **2050 Goal:** Provide **100%** clean, carbon-free electricity[288](index=288&type=chunk) - **2030 Target:** Achieve a **65%** clean energy resource mix, with **45%** from renewables[289](index=289&type=chunk) - **2031 Goal:** End all use of coal-fired generation[290](index=290&type=chunk) - The Arizona Corporation Commission (ACC) approved the 2019 Rate Case, resulting in a total annual revenue decrease for APS of **$4.8 million**, effective December 1, 2021, with APS appealing certain aspects including a **$215.5 million** disallowance of Four Corners SCR project investments[91](index=91&type=chunk)[342](index=342&type=chunk) - APS projects annual customer growth of **1.5% to 2.5%** through 2024 and weather-normalized retail sales growth of **3.5% to 4.5%** through 2024, driven by population growth and new large manufacturing and data center customers[356](index=356&type=chunk)[359](index=359&type=chunk) [Results of Operations](index=84&type=section&id=Results%20of%20Operations) This section details the decrease in net income attributable to common shareholders for Q2 and H1 2022, primarily due to higher depreciation, lower revenue, and increased O&M costs Q2 2022 vs Q2 2021 Change in Net Income Attributable to Common Shareholders (in millions) | | **2022** | **2021** | **Net Change** | | :--- | :--- | :--- | :--- | | **Operating revenues less fuel and purchased power** | $708 | $726 | $(18) | | Operations and maintenance | $(244) | $(228) | $(16) | | Depreciation and amortization | $(186) | $(158) | $(28) | | Taxes other than income taxes | $(54) | $(60) | $6 | | Income taxes | $(27) | $(47) | $20 | | **Regulated electricity segment income** | **$166** | **$217** | **$(51)** | | **Net Income Attributable to Common Shareholders** | **$164** | **$216** | **$(52)** | Six Months 2022 vs 2021 Change in Net Income Attributable to Common Shareholders (in millions) | | **2022** | **2021** | **Net Change** | | :--- | :--- | :--- | :--- | | **Operating revenues less fuel and purchased power** | $1,225 | $1,222 | $3 | | Operations and maintenance | $(462) | $(458) | $(4) | | Depreciation and amortization | $(373) | $(317) | $(56) | | Taxes other than income taxes | $(112) | $(118) | $6 | | Income taxes | $(31) | $(42) | $11 | | **Regulated electricity segment income** | **$184** | **$253** | **$(69)** | | **Net Income Attributable to Common Shareholders** | **$181** | **$251** | **$(70)** | [Liquidity and Capital Resources](index=90&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains sufficient liquidity through operating cash flow, credit facilities, and external financing, with capital expenditures focused on clean energy and infrastructure - Net cash provided by operating activities increased by **$275 million** to **$588 million** for the six months ended June 30, 2022, compared to the same period in 2021[394](index=394&type=chunk)[396](index=396&type=chunk) Estimated Capital Expenditures (in millions) | Category | 2022 | 2023 | 2024 | | :--- | :--- | :--- | :--- | | **Generation** | | | | | Nuclear Generation | $110 | $120 | $110 | | Renewables and ESS | $230 | $210 | $450 | | Other Generation | $250 | $270 | $190 | | **Distribution** | $510 | $530 | $500 | | **Transmission** | $250 | $210 | $210 | | **Other** | $175 | $185 | $190 | | **Total APS** | **$1,525** | **$1,525** | **$1,650** | - Pinnacle West and APS are in compliance with their debt covenants, requiring a maximum debt-to-capitalization ratio of **65%**, with ratios of approximately **57%** for Pinnacle West and **50%** for APS as of June 30, 2022[411](index=411&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=97&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to Item 2 (MD&A) for detailed disclosures on the company's exposure to market risks, including interest rate, commodity, and credit risks - The company is exposed to market risks from changes in interest rates, commodity prices (electricity and natural gas), and the value of investments in its nuclear decommissioning trusts and benefit plan assets[420](index=420&type=chunk)[421](index=421&type=chunk)[422](index=422&type=chunk) Hypothetical 10% Price Movement Impact on Risk Management Assets/Liabilities (in millions) | Commodity | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | | **Gain (Loss)** | **Gain (Loss)** | | | **Price Up 10%** | **Price Down 10%** | **Price Up 10%** | **Price Down 10%** | | Electricity | $7 | $(7) | $— | $— | | Natural gas | $60 | $(60) | $50 | $(50) | | **Total** | **$67** | **$(67)** | **$50** | **$(50)** | [Controls and Procedures](index=97&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal control over financial reporting - Both Pinnacle West's and APS's Chief Executive Officer and Chief Financial Officer concluded that the respective company's disclosure controls and procedures were effective as of June 30, 2022[430](index=430&type=chunk)[431](index=431&type=chunk) - There were no material changes in internal control over financial reporting during the fiscal quarter ended June 30, 2022[433](index=433&type=chunk) [Part II — OTHER INFORMATION](index=99&type=section&id=Part%20II%20%E2%80%94%20OTHER%20INFORMATION) [Legal Proceedings](index=99&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to other parts of the report for detailed information on legal proceedings, including regulatory and environmental matters - For details on legal proceedings, the report directs readers to Note 4 (ACC and FERC matters) and Note 8 (environmental, Superfund, and other disputes)[437](index=437&type=chunk)[438](index=438&type=chunk) [Risk Factors](index=99&type=section&id=Item%201A.%20Risk%20Factors) This section states no new risk factors are reported and directs readers to the 2021 Form 10-K and Q1 2022 Form 10-Q for comprehensive risk disclosures - The company advises that the risk factors discussed in its 2021 Form 10-K and Q1 2022 Form 10-Q should be carefully considered, as they could materially affect business, financial condition, and future results[439](index=439&type=chunk) [Other Information](index=99&type=section&id=Item%205.%20Other%20Information) No information was reported under this item - No information was reported under this item[440](index=440&type=chunk) [Exhibits](index=100&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications, XBRL data files, and incorporated corporate governance documents - The exhibits filed include CEO and CFO certifications (Exhibits 31.1-32.2) and XBRL interactive data files (Exhibit 101 series)[442](index=442&type=chunk)

PINNACLE WEST - farmial from - farming - farmilly 1 POWERING GROWTH DELIVERING VALUE First Quarter 2022 Results May 4, 2022 Forward Looking Statements This presentation contains forward-looking statements based on current expectations, including statements regarding our earnings guidance and financial outlook and goals. These forward-looking statements are often identified by words such as "estimate," "predict," "may," "believe," "plan," "expect," "require," "intend," "assume," "project," "anticipate," "goa ...

Pinnacle West Capital Corporation (NYSE:PNW) Q1 2022 Earnings Conference Call May 4, 2022 12:00 PM ET Company Participants Amanda Ho – Director-Investor Relations Jeff Guldner – Chairman and Chief Executive Officer Ted Geisler – Chief Financial Officer Jacob Tetlow – Executive Vice President, Operations Conference Call Participants Julien Dumoulin-Smith – Bank of America Nicholas Campanella – Credit Suisse Insoo Kim – Goldman Sachs Paul Patterson – Glenrock Associates David Peters – Wolfe Research Anthony C ...