Pinnacle West Capital Corporation (NYSE:PNW) Q1 2024 Earnings Conference Call May 2, 2024 10:00 AM ET Company Participants Amanda Ho - Director of Investor Relations Jeff Guldner - Chairman & Chief Executive Officer Andrew Cooper - Chief Financial Officer Conference Call Participants Michael Lonegan - Evercore ISI Alex Mortimer - Mizuho Operator Good morning, everyone, and welcome to the Pinnacle West Capital Corporation 2024 First Quarter Earnings Conference Call. At this time all participants have been pl ...

Pathway 15 Arizona continues to be an attractive service territory with strong customer growth Arizona economy continues to be robust and attractive • In 2023, Maricopa County was the fourth fastest-growing county in the nation • Phoenix is ranked #1 out of 15 top growth markets for manufacturing by Newmark Group, a global real estate firm • Maricopa County leads the nation in attracting talent according to Lightcast, a global leader in labor market analytics 2.1% 2.3% 2.4% 2.2%2.1% 1.5%-2.5% 0% 1% 2% 3% 20 ...

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, 2024 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. | | --- | --- ...

Alan Bunnell (602) 250-3376 Amanda Ho (602) 250-3334 PINNACLE WEST REPORTS 2024 FIRST-QUARTER RESULTS PHOENIX – Pinnacle West Capital Corp. (NYSE: PNW) today reported consolidated net income attributable to common shareholders of $16.9 million, or $0.15 per diluted share of common stock, for the quarter ended March 31, 2024. This result compares with a consolidated net loss attributable to common shareholders of $3.3 million, or a loss of $0.03 per diluted share, for the same period in 2023. The improved fi ...

Pinnacle West Capital Corporation (NYSE:PNW) Q4 2023 Earnings Conference Call February 27, 2024 11:00 AM ET Company Participants Amanda Ho - Director of Investor Relations Jeff Guldner - Chairman and CEO Andrew Cooper - CFO Ted Geisler - APS' President Jacob Tetlow - Executive Vice President of Operations Conference Call Participants Nick Campanella - Barclays Michael Lonegan - Evercore ISI Paul Patterson - Glenrock Bill Appicelli - UBS Anthony Crowdell - Mizuho Operator Good day, everyone. And welcome to t ...

Clean Energy Commitment - In 2023, approximately 51% of APS's energy supply was derived from clean resources, including nuclear and renewables[30]. - APS has set a goal to provide 100% clean, carbon-free electricity by 2050 and aims for a resource mix of 65% clean energy by 2030[37]. - The company plans to exit from coal-fired generation by 2031 as part of its Clean Energy Commitment[37]. - APS's Clean Energy Commitment includes promoting energy conservation and efficiency programs[31]. - APS has a diverse portfolio of renewable resources, including solar, wind, geothermal, biogas, and biomass[31]. Renewable Energy Portfolio - APS's renewable energy portfolio totals 5,010 MW, with 3,072 MW currently in operation and 1,938 MW under contract or construction[70]. - APS's total renewable portfolio capacity is 3,072 MW, which includes 1,623 MW from distributed energy sources[75]. - The renewable energy requirement under the Renewable Energy Standard is 13% of retail electric sales in 2023, increasing to 15% by 2025[90]. - APS issued a 2023 RFP seeking approximately 1,000 MW of reliable capacity, including at least 700 MW of renewable resources[78]. - APS plans to install over 2,700 MW of utility-scale energy storage by 2026, including projects under PPAs and AZ Sun retrofits[78]. Financial Performance and Regulatory Environment - Pinnacle West's financial condition is significantly influenced by APS's ability to recover costs through regulated rates, which are subject to approval by the ACC and FERC[175]. - The ACC regulates APS's retail electric rates, and any changes in these rates or the timeliness of cost recovery can materially impact financial results[176]. - APS faces potential penalties of approximately $1.2 million per day for non-compliance with mandatory electric reliability standards set by FERC[177]. - Environmental regulations may increase APS's operational costs, particularly regarding air emissions and waste management, which could adversely affect financial performance[181]. - APS's operations are at risk from climate change effects, including prolonged drought and high temperature extremes, which may impact electric generation infrastructure[191]. Employee and Community Engagement - As of December 31, 2023, APS has 6,045 employees, including approximately 2,200 employees at jointly-owned generating facilities[166]. - In 2023, 42% of external hires were ethnically or racially diverse, 35% were female, and 8% were veterans[149]. - APS's Total Rewards strategy includes pay, benefits, retirement, recognition, and career development, aimed at enhancing employee satisfaction[154]. - The company graduated 152 individuals from its leadership academies in 2023, focusing on talent development[151]. - APS's diversity, equity, and inclusion initiatives have led to recognition as the winner of the Inclusive Workplace Award in 2021[146]. Legal and Environmental Compliance - The company is involved in legal proceedings related to the DOE's failure to accept spent nuclear fuel as per contractual obligations[43]. - APS has submitted nine claims to the DOE, recovering $138.2 million, with APS's share being $40.2 million, and a tenth claim of $18.46 million filed on October 31, 2023[46]. - APS incurred approximately $1 million in incremental costs to comply with the CCR rule for the Navajo Plant[119]. - APS estimates costs of approximately $3 million related to the Superfund investigation at the Motorola 52 Street Superfund Site[127]. - The EPA's proposed regulations may impose stricter emission standards on new and existing power plants, which could increase operational costs for APS[114]. Market and Demand Trends - Retail customers in APS's service territory increased by 2.0% for the year ended December 31, 2023, with an average growth of 2.1% per year over the past three years[201]. - Retail electricity sales in kWh, adjusted for weather variations, increased by 1.5% for the year ended December 31, 2023, driven by strong sales to commercial and industrial customers[202]. - APS projects annual retail electricity sales growth in kWh to be between 2.0% to 4.0% for 2024, with average annual growth expected to be in the range of 4.0% to 6.0% through 2026[203]. - APS is experiencing unprecedented incremental requests for service from extra-large commercial energy users (over 25 MW), which exceed available generation and transmission capacity[204]. - A 1% variation in annual residential and small commercial and industrial kWh sales projections can result in approximately $20 million increase or decrease in annual net income[205].

FOR IMMEDIATE RELEASE February 27, 2024 Media Contact: Alan Bunnell (602) 250-3376 Analyst Contacts: Amanda Ho (602) 250-3334 Website: pinnaclewest.com PINNACLE WEST REPORTS 2023 FULL-YEAR AND FOURTH-QUARTER RESULTS, SHARES 2024 FINANCIAL OUTLOOK PHOENIX – Pinnacle West Capital Corp. (NYSE: PNW) today reported consolidated net income attributable to common shareholders of $501.6 million, or $4.41 per diluted share, for full-year 2023. This result compares with net income of $483.6 million, or $4.26 per dilu ...

Pinnacle West Capital Corporation (NYSE:PNW) Q3 2023 Results Conference Call November 2, 2023 12:00 PM ET Company Participants Amanda Ho - Director of Investor Relations Jeff Guldner - Chairman and CEO Andrew Cooper - CFO Ted Geisler - APS' President Jacob Tetlow - Executive Vice President of Operations Jose Esparza - Senior Vice President of Public Policy Conference Call Participants Shar Pourreza - Guggenheim Partners Nicholas Campanella - Barclays Julian Dumoulin-Smith - Bank of America Paul Patterson - ...

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 September 30, 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 - The company reported earnings of $0.94 per share for Q2 2023, down $0.51 compared to the same quarter last year, primarily due to extremely mild weather in June [36][69] - The updated EPS guidance range for the year is now $4.10 to $4.30 per share, reflecting the impact of a new surcharge approved by the commission [38][35] Business Line Data and Key Metrics Changes - Operating and Maintenance (O&M) guidance for 2023 has been increased to a range of $915 million to $935 million, with expectations of flat O&M per megawatt hour compared to last year [5][12] - Year-over-year increases in O&M categories were attributed to inflation and high customer growth, with generation fleet O&M constituting a significant portion of the increase [45] Market Data and Key Metrics Changes - Customer growth remains steady at 2% for Q2, with Arizona continuing to be a popular migration destination, contributing to strong fundamentals for customer growth [37] - Weather-normalized sales growth for the quarter was 0.1%, with commercial and industrial sales growth at 2.2% [70] Company Strategy and Development Direction - The company is focused on maintaining reliability and affordability while transitioning to 100% clean and carbon-free electricity by 2050 [43] - A new all-source RFP for 1,000 megawatts is being issued to ensure a diverse energy mix and reliable service [43] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the recent heat wave but emphasized the company's preparedness and ability to deliver reliable service [2][67] - The company is actively working to reduce regulatory lag and improve the predictability of earnings streams [55][80] Other Important Information - The company successfully broke its previous peak demand record in July, reaching nearly 8,200 megawatts, a 500-megawatt increase from the prior record set in 2020 [34] - The company is advocating for a generation rider to address regulatory lag and support capital deployment [49] Q&A Session Summary Question: Comments on the rate case and generation rider - Management noted that there is interest from staff in understanding the value of the proposed generation rider, and they are advocating for it to address regulatory lag [9][10] Question: Impact of pension-related adjustments on future EPS - Management indicated that pension-related adjustments would be reflected in revenue requirements and customer charges, with ongoing advocacy for these adjustments [23][91] Question: Expectations for O&M in the latter part of the year - Management stated that they will evaluate O&M opportunities and risks at the end of the summer, considering weather impacts and operational needs [76] Question: Long-term growth rate expectations post-rate case - Management expressed confidence in achieving a linear earnings stream within the 5% to 7% growth rate, with updates to key drivers expected after the rate case concludes [80][81]