Pinnacle West(US:PNW)2022-11-03 18:02Financial 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]