pnw-20240502

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934


			Date of report (Date of earliest event reported):			May 2, 2024


Commission File Number	Exact Name of Each Registrant as specified in its charter; State of Incorporation; Address; and Telephone Number			IRS Employer Identification No.
1-8962	PINNACLE WEST CAPITAL CORPORATION			86-0512431
	(an Arizona corporation)
	400 North Fifth Street, P.O. Box 53999
	Phoenix	Arizona	85072-3999
	(602)	250-1000
1-4473	ARIZONA PUBLIC SERVICE COMPANY			86-0011170
	(an Arizona corporation)
	400 North Fifth Street, P.O. Box 53999
	Phoenix	Arizona	85072-3999
	(602)	250-1000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:


☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	PNW	The New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).


Emerging growth company			☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

This combined Form 8-K is separately filed or furnished by Pinnacle West Capital Corporation and Arizona Public Service Company. Each registrant is filing or furnishing on its own behalf all of the information contained in this Form 8-K that relates to such registrant and, where required, its subsidiaries. Except as stated in the preceding sentence, neither registrant is filing or furnishing any information that does not relate to such registrant, and therefore makes no representation as to any such information.

Item 2.02. Results of Operations and Financial Condition.

The following information is furnished pursuant to Item 2.02.

On May 2, 2024, Pinnacle West Capital Corporation (“Pinnacle West”) issued a press release regarding its financial results for the fiscal quarter ended March 31, 2024. A copy of the press release is attached hereto as Exhibit 99.1.

Item 7.01. Regulation FD Disclosure.

The following information is furnished pursuant to Item 7.01.

Pinnacle West is providing a copy of the slide presentation made in connection with the quarterly earnings conference call on May 2, 2024. This information contains Pinnacle West operating results for the fiscal quarter ended March 31, 2024 and earnings outlook for 2024. The slide presentation is attached hereto as Exhibit 99.2 and is concurrently being posted to Pinnacle West’s website at www.pinnaclewest.com.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits


Exhibit No.	Registrant(s)	Description

99.1	Pinnacle West Arizona Public Service Company	Earnings News Release issued on May 2 , 202 4

99.2	Pinnacle West Arizona Public Service Company	Pinnacle West Capital Corporation First Quarter 202 4 Results slide presentation accompanying May 2 , 202 4 conference call

104.0	Pinnacle West Arizona Public Service Company	104 Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


						PINNACLE WEST CAPITAL CORPORATION
						(Registrant)


Dated: May 2, 2024						By: /s/ Andrew Cooper
						Andrew Cooper
						Senior Vice President and
						Chief Financial Officer

						ARIZONA PUBLIC SERVICE COMPANY
						(Registrant)


Dated: May 2, 2024						By: /s/ Andrew Cooper
						Andrew Cooper
						Senior Vice President and
						Chief Financial Officer

Document

Exhibit 99.1

http://api.rkd.refinitiv.com/api/FilingsRetrieval3/.78866500.0000764622-24-000043a2q2020earningsfinal0_imag.jpg.ashx


FOR IMMEDIATE RELEASE		May 2, 2024
Media Contact: Analyst Contact:	Alan Bunnell (602) 250-3376 Amanda Ho (602) 250-3334
Website:	pinnaclewest.com

PINNACLE WEST REPORTS 2024 FIRST-QUARTER RESULTS

•Improved quarterly results impacted by customer growth, increased sales and new rates

•APS employees focus on summer preparedness, reliability and resilience

•Company reaffirms full-year 2024 guidance

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 first-quarter results reflect the impact of new retail base rates which took effect March 8, 2024; increased customer growth and usage; higher revenue resulting from Arizona Public Service Co.’s (APS) Lost Fixed Cost Recovery (LFCR) adjustor mechanism and a surcharge resulting from the outcome of the utility’s 2019 Rate Case appeal; and higher other income largely due to the sale of a former subsidiary. These positive factors were partially offset by higher depreciation and amortization expense primarily due to increased plant in service and intangible assets; higher interest charges, net of AFUDC; the effects of weather; and higher operations and maintenance expense.

“The first quarter proved to be a strong start to our year and continued to build on the momentum of a growing and diverse customer base,” said Pinnacle West Chairman, President and Chief Executive Officer Jeff Guldner, citing 1.8% year-over-year customer growth and weather-normalized sales growth of 5.9%. “With Arizona’s population expected to continue growing faster than the national average, it’s clear that people view Arizona as an attractive place to live and do business.”

A Thriving, Growing Service Territory

According to recent data from the U.S. Census Bureau, Maricopa County (home to 70 percent of APS’s customers) saw the fourth highest raw-numbers population increase in the U.S. in 2023, while Pinal County (south of Phoenix) saw the nation’s seventh-highest level of net domestic migration.

Metro Phoenix is also among the top markets for manufacturing growth due to at least 14 major announcements that have been made in the region since 2020, and the area was ranked No. 1 out of the 15 top growth markets for largest projected job gains by global real estate firm Newmark Group Inc. in its latest manufacturing report.

Further, the research team at USA TODAY Homefront looked at the cost of living by state, and found that, despite inflation pressures, Arizona is the third most affordable state in terms of total cost of living, coming behind Utah and Tennessee.

Summer Reliability and Safety Preparations Underway

With Arizona’s temperatures already heating up, Guldner said, “Employees are focused on critical preparations to deliver safe and reliable power over our peak summer season – when our nearly 1.4 million customers need it most to cool their homes and businesses.”

Across a sprawling network of more than 38,000 miles of power lines, APS crews are on the front lines year-round conducting patrols – on foot, by vehicle and in the air – to protect and maintain a strong and resilient energy system. Key elements of the company’s summer readiness include operational preparedness, resource planning, sufficient reserve margins, customer partnerships to manage peak demand and fire mitigation. In addition, APS employees are nearing completion of a scheduled maintenance and refueling outage at Palo Verde Generating Station Unit 3. One of the largest producers of carbon-free energy in the U.S., the three-unit nuclear plant is critical to meeting summer demand across the Desert Southwest.

With Arizona’s hot summers, low rainfall and dry vegetation, the company is taking further action to support wildfire-prone communities by employing advanced risk modeling tools; installing innovative fire- and weather-tracking technology on the grid; using new advanced cameras on electrical equipment to monitor potential signs of a fire from a command center; and enhancing the company’s already robust wildfire mitigation program.

“We’ve employed industry-leading best practices over the past decade to help safeguard the communities we serve and our infrastructure from Arizona’s changing climate,” said Guldner. “As a hometown energy provider, we have a responsibility to do what we can to prevent wildfires, and we are thoughtfully investing in resources to ensure greater protection for the public, firefighters, our employees and the electric grid.”

Under extreme weather conditions and in a limited approach, APS also has implemented a new Public Safety Power Shutoffs (PSPS) program to maintain the safety of people, communities and firefighters. During extremely high-fire risk conditions, APS may shut off power to a specific area to prevent the electric system from starting or contributing to a wildfire through a downed wire or inadvertent spark. It’s a tool the company plans to use only when necessary.

The company’s focus on summer readiness extends to its work to deliver an industry-leading customer experience. Customer touchpoints – including an interactive outage map and email and text alerts – are being enhanced ahead of Arizona’s summer season. In conjunction with APS’s 24/7 Customer Care Center, these tools will help customers stay better informed during any outages.

Financial Outlook

For 2024, the company continues to estimate its consolidated earnings guidance will be in the range of $4.60 to $4.80 per diluted share on a weather-normalized basis. Key factors and assumptions underlying this outlook can be found in the first-quarter 2024 earnings presentation slides at pinnaclewest.com/investors.

Conference Call and Webcast

Pinnacle West invites interested parties to listen to the live webcast of management’s conference call to discuss the company’s 2024 first-quarter results, as well as recent developments, at 10 a.m. ET (7 a.m. Arizona time) today, May 2. Join the live webcast at www.pinnaclewest.com/presentations for audio of the call and slides, or dial (888) 506-0062 or (973) 528-0011 for international callers and enter participant access code 612288. A replay of the webcast can be accessed for 30 days at pinnaclewest.com/presentations. A replay of the call also will be available until 11:59 p.m. ET, Thursday, May 9, 2024, by calling (877) 481-4010 in the U.S. and Canada or (919) 882-2331 internationally and entering replay passcode 50305.

General Information

Pinnacle West Capital Corp., an energy holding company based in Phoenix, has consolidated assets of nearly $25 billion, about 6,500 megawatts of generating capacity and approximately 6,100 employees in Arizona and New Mexico. Through its principal subsidiary, Arizona Public Service, the company provides

retail electricity service to approximately 1.4 million Arizona homes and businesses. For more information about Pinnacle West, visit the company’s website at pinnaclewest.com.

Dollar amounts in this news release are after income taxes. Earnings per share amounts are based on average diluted common shares outstanding. For more information on Pinnacle West’s operating statistics and earnings, please visit pinnaclewest.com/investors.

FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements based on current expectations. These forward-looking statements are often identified by words such as "estimate," "predict," "may," "believe," "plan," "expect," "require," "intend," "assume," "project," "anticipate," "goal," "seek," "strategy," "likely," "should," "will," "could," and similar words. Because actual results may differ materially from expectations, we caution readers not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or APS. These factors include, but are not limited to:

•uncertainties associated with the current and future economic environment, including economic growth, labor market conditions, inflation, supply chain delays, increased expenses, volatile capital markets, or other unpredictable effects;

•our ability to manage capital expenditures and operations and maintenance costs while maintaining reliability and customer service levels;

•variations in demand for electricity, including those due to weather, seasonality (including large increases in ambient temperatures), the general economy or social conditions, customer, and sales growth (or decline), the effects of energy conservation measures and distributed generation, and technological advancements;

•the potential effects of climate change on our electric system, including as a result of weather extremes such as prolonged drought and high temperature variations in the area where APS conducts its business;

•power plant and transmission system performance and outages;

•competition in retail and wholesale power markets;

•regulatory and judicial decisions, developments, and proceedings;

•new legislation, ballot initiatives and regulation or interpretations of existing legislation or regulations, including those relating to environmental requirements, regulatory and energy policy, nuclear plant operations and potential deregulation of retail electric markets;

•fuel and water supply availability;

•our ability to achieve timely and adequate rate recovery of our costs through our rates and adjustor recovery mechanisms, including returns on and of debt and equity capital investment;

•our ability to meet renewable energy and energy efficiency mandates and recover related costs;

•the ability of APS to achieve its clean energy goals (including a goal by 2050 of 100% clean, carbon-free electricity) and, if these goals are achieved, the impact of such achievement on APS, its customers, and its business, financial condition, and results of operations;

•risks inherent in the operation of nuclear facilities, including spent fuel disposal uncertainty;

•current and future economic conditions in Arizona;

•the direct or indirect effect on our facilities or business from cybersecurity threats or intrusions, data security breaches, terrorist attack, physical attack, severe storms, or other catastrophic events, such as fires, explosions, pandemic health events or similar occurrences;

•the development of new technologies which may affect electric sales or delivery, including as a result of delays in the development and application of new technologies;

•the cost of debt, including increased cost as a result of rising interest rates, and equity capital and the ability to access capital markets when required;

•environmental, economic, and other concerns surrounding coal-fired generation, including regulation of GHG emissions;

•volatile fuel and purchased power costs;

•the investment performance of the assets of our nuclear decommissioning trust, pension, and other postretirement benefit plans and the resulting impact on future funding requirements;

•the liquidity of wholesale power markets and the use of derivative contracts in our business;

•potential shortfalls in insurance coverage;

•new accounting requirements or new interpretations of existing requirements;

•generation, transmission and distribution facility and system conditions and operating costs;

•the ability to meet the anticipated future need for additional generation and associated transmission facilities in our region;

•the willingness or ability of our counterparties, power plant participants and power plant landowners to meet contractual or other obligations or extend the rights for continued power plant operations; and

•restrictions on dividends or other provisions in our credit agreements and Arizona Corporation Commission orders.

These and other factors are discussed in the most recent Pinnacle West/APS Form 10-K and 10-Q along with other public filings with the Securities and Exchange Commission, which readers should review carefully before placing any reliance on our financial statements or disclosures. Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal estimates change, except as required by law.

# # #

PINNACLE WEST CAPITAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

(dollars and shares in thousands, except per share amounts)


	THREE MONTHS ENDED
	MARCH 31,
	2024		2023

Operating Revenues	$	951,712	$	944,955

Operating Expenses
Fuel and purchased power	357,864		394,504
Operations and maintenance	257,578		250,080
Depreciation and amortization	210,294		191,906
Taxes other than income taxes	59,164		57,138
Other expense	20		610
Total	884,920		894,238

Operating Income	66,792		50,717

Other Income (Deductions)
Allowance for equity funds used during construction	10,292		15,061
Pension and other postretirement non-service credits - net	11,568		9,865
Other income	30,607		6,077
Other expense	(7,567)		(4,131)
Total	44,900		26,872

Interest Expense
Interest charges	99,774		88,119
Allowance for borrowed funds used during construction	(13,141)		(12,722)
Total	86,633		75,397

Income Before Income Taxes	25,059		2,192

Income Taxes	3,891		1,183

Net Income	21,168		1,009

Less: Net income attributable to noncontrolling interests	4,306		4,306

Net Income (Loss) Attributable To Common Shareholders	$	16,862	$	(3,297)

Weighted-Average Common Shares Outstanding - Basic	113,621		113,358

Weighted-Average Common Shares Outstanding - Diluted	114,227		113,358

Earnings Per Weighted-Average Common Share Outstanding
Net income (loss) attributable to common shareholders - basic	$	0.15	$	(0.03)
Net income (loss) attributable to common shareholders - diluted	$	0.15	$	(0.03)

a8-kpnw033124exhibit992

Renewed, Reliable and Resilient First-Quarter 2024 Financial Results May 2, 2024

2 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," "strategy," "likely," "should," "will," "could," and similar words. Because actual results may differ materially from expectations, we caution you not to place undue reliance on these statements. A number of factors could cause future results to differ materially from historical results, or from outcomes currently expected or sought by Pinnacle West or APS. These factors include, but are not limited to: uncertainties associated with the current and future economic environment, including economic growth rates, labor market conditions, inflation, supply chain delays, increased expenses, volatile capital markets, or other unpredictable effects; our ability to manage capital expenditures and operations and maintenance costs while maintaining reliability and customer service levels; variations in demand for electricity, including those due to weather, seasonality (including large increases in ambient temperatures), the general economy or social conditions, customer, and sales growth (or decline), the effects of energy conservation measures and distributed generation, and technological advancements; the potential effects of climate change on our electric system, including as a result of weather extremes such as prolonged drought and high temperature variations in the area where APS conducts its business; power plant and transmission system performance and outages; competition in retail and wholesale power markets; regulatory and judicial decisions, developments, and proceedings; new legislation, ballot initiatives and regulation or interpretations of existing legislation or regulations, including those relating to environmental requirements, regulatory and energy policy, nuclear plant operations and potential deregulation of retail electric markets; fuel and water supply availability; our ability to achieve timely and adequate rate recovery of our costs through our rates and adjustor recovery mechanisms, including returns on and of debt and equity capital investment; our ability to meet renewable energy and energy efficiency mandates and recover related costs; the ability of APS to achieve its clean energy goals (including a goal by 2050 of 100% clean, carbon-free electricity) and, if these goals are achieved, the impact of such achievement on APS, its customers, and its business, financial condition, and results of operations; risks inherent in the operation of nuclear facilities, including spent fuel disposal uncertainty; current and future economic conditions in Arizona; the direct or indirect effect on our facilities or business from cybersecurity threats or intrusions, data security breaches, terrorist attack, physical attack, severe storms, or other catastrophic events, such as fires, explosions, pandemic health events or similar occurrences; the development of new technologies which may affect electric sales or delivery, including as a result of delays in the development and application of new technologies; the cost of debt, including increased cost as a result of rising interest rates, and equity capital and our ability to access capital markets when required; environmental, economic, and other concerns surrounding coal-fired generation, including regulation of GHG emissions; volatile fuel and purchased power costs; the investment performance of the assets of our nuclear decommissioning trust, pension, and other postretirement benefit plans and the resulting impact on future funding requirements; the liquidity of wholesale power markets and the use of derivative contracts in our business; potential shortfalls in insurance coverage; new accounting requirements or new interpretations of existing requirements; generation, transmission and distribution facility and system conditions and operating costs; our ability to meet the anticipated future need for additional generation and associated transmission facilities in our region; the willingness or ability of our counterparties, power plant participants and power plant landowners to meet contractual or other obligations or extend the rights for continued power plant operations; and restrictions on dividends or other provisions in our credit agreements and ACC orders. These and other factors are discussed in the most recent Pinnacle West/APS Form 10-K along with other public filings with the Securities and Exchange Commission, which you should review carefully before placing any reliance on our financial statements, disclosures or earnings outlook. Neither Pinnacle West nor APS assumes any obligation to update these statements, even if our internal estimates change, except as required by law. In this presentation, references to net income and earnings per share (EPS) refer to amounts attributable to common shareholders. Forward Looking Statements

Operating Revenue less Fuel and Purchased Power 2022 GRC base rate impact $ 0.12 LFCR & 2019 GRC appeal outcome $ 0.12 Sales/Usage $ 0.11 All other $ 0.04 RES/DSM/EIS $ 0.01 Transmission $ (0.04) Weather $ (0.07) 1Q 2023 1Q 2024 1 Includes costs and offsetting operating revenues associated with renewable energy and demand side management programs, see sl ide 22 for more information. 2 Other, net benefit is primarily the gain on the sale of Bright Canyon Energy. See Note 14 in First Quarter 2024 Form 10-Q for more information. Operating Revenue less Fuel and Purchased Power1 O&M1 D&A Pension & OPEB non- service credits, net Interest, net AFUDC Other, net2 Income & other taxes 3 First-Quarter results impacted by customer growth and new rates

Key Factors and Assumptions (as of May 2, 2024) 2024 Adjusted gross margin (operating revenues, net of fuel and purchased power expenses, x/RES,DSM,CCT)1 $2.93 – $3.00 billion • Retail customer growth of 1.5%-2.5% • Weather-normalized retail electricity sales growth of 2.0%-4.0% • Includes 2.5%-3.5% contribution to sales growth of new large manufacturing facilities and several large data centers • Assumes normal weather Adjusted operating and maintenance expense (O&M x/RES,DSM,CCT)1 $940 – $960 million Other operating expenses (depreciation and amortization, and taxes other than income taxes) $1.09 – $1.11 billion Other income (pension and other post-retirement non-service credits, other income and other expense) $58 – $64 million Interest expense, net of allowance for borrowed and equity funds used during construction (Total AFUDC ~$96 million) $320 – $340 million Net income attributable to noncontrolling interests $17 million Effective tax rate 13.75% – 14.25% Average diluted common shares outstanding 114.9 million EPS Guidance $4.60 – $4.80 1 Excludes costs and offsetting operating revenues associated with renewable energy and demand side management programs. For reconciliation, see slide 22. 4 2024 EPS guidance

2024 EPS guidance of $4.60-$4.80 key drivers1  New rates in effect March 8, 2024  Depreciation, amortization and property taxes due to higher plant in service  Retail customer growth of 1.5%-2.5%  2024 normal weather  Weather-normalized retail electricity sales growth of 2.0%-4.0% (includes 2.5%- 3.5% from large C&I)  Financing costs  LFCR & 2019 GRC appeal outcome  Operations and maintenance  BCE sale Long-term guidance and key drivers • Long-term EPS growth target of 5%-7% off 2024 midpoint • Retail customer growth of 1.5%-2.5% • Weather-normalized retail electricity sales growth of 4%-6% (includes 3%-5% from large C&I customers) 0.8% 4.2% 2.4% 1.5% 2.0%-4.0% 0% 1% 2% 3% 4% 5% 6% '20 '21 '22 '23 '24E Total Sales Growth 5 1 Arrows represent expected comparative year-over-year impact of each driver on earnings. Key drivers for 2024 EPS guidance

$6.85B $7.80B 2022-2025E 2023-2026E CapEx Profile $233 $285 $280 $385 $572 $565 $550 $590 $361 $340 $415 $420 $634 $760 $755 $655 2023 2024E 2025E 2026E APS Total 2024-2026 $6.0B Generation Transmission Distribution Other $1.80B $1.95B $2.00B $2.05B Source: 2024-2026 as disclosed in the First Quarter 2024 Form 10-Q One year ago Today 6 Capital plan to support reliability and continued growth within our service territory

Current Approved Rate Base and Test Year Detail End-of-Year Rate Base and Growth Guidance ACC FERC Rate Effective Date 03/08/2024 6/1/2023 Test Year Ended 6/30/20221 12/31/2022 Equity Layer 51.93% 50.3% Allowed ROE 9.55% 10.75% Rate Base $10.36B2 $2.0B $9.92 $13.5 $2.01 $2.6 2022 2023 2024 2025 2026 ACC FERC 7 Rate base $ in billions, rounded Projected 1 Derived from APS annual update of formula transmission service rates. 2 Represents unadjusted ACC jurisdictional rate base consistent with regulatory filings. 1 Adjusted to include post-test year plant in service through 06/30/2023. 2 Rate Base excludes $215M approved through Joint Resolution in Case No. E-01345A-19-0236. Generation spend through System Reliability Benefit Surcharge and transmission spend will total ~35% of tracked capital from 2024-2026 and help reduce regulatory lag Rate Base growing within our service territory

$886 $865-$875 $127 $125-$135 $46 $75-$85 2023 2024 O&M Guidance (millions) Planned Outages RES/DSM Core O&M 8 Operations & Maintenance Guidance • Reduced year-over-year core O&M excluding planned outages • Final planned major outage in Q4 2024 at Four Corners Unit 5 • Unit 4 final planned major outage in 2025 • Lean culture and declining O&M per MWh goal We are focused on cost control and customer affordability

Approx. $3B Cash from Operations1 APS Debt2 PNW Debt2 Future PNW Capital Total Capital Investment $1.7B-$1.9B $200M-400M Approx. $400M 1 Cash from operations is net of shareholder dividends. 2 APS and PNW debt issuance is net of maturities. ✓ Successfully raised ~$750 million of external equity on a forward sale to support balanced APS capital structure and expanded, accretive investment • Enhanced CapEx plan will require future financing matched to spend profile through 2026 (~40% of incremental CapEx in plan) • Tools available for future PNW capital need include ATM and alternatives (e.g., hybrid securities) Funding Strategy 2024-2026 Financing Plan ~$750M Approx. $6B PNW Equity 9 Optimized financing plan to support balanced capital structure ✓

Balance Sheet Targets • Solid investment-grade credit ratings • APS equity layer >50% • PNW FFO/Debt range of 14%-16% Corporate Ratings Senior Unsecured Ratings Short-Term Ratings Outlook APS Moody’s Baa1 Baa1 P-2 Stable S&P BBB+ BBB+ A-2 Stable Fitch BBB+ A- F2 Stable Pinnacle West Moody’s Baa2 Baa2 P-2 Stable S&P BBB+ BBB A-2 Stable Fitch BBB BBB F3 Stable 10 1 We are disclosing credit ratings to enhance understanding of our sources of liquidity and the effects of our ratings on our costs of funds. Ratings are as of April 25, 2024. We are focused on maintaining healthy credit ratings to support affordable growth1

$0 $200 $400 $600 $800 $1,000 $1,200 2024 2026 2028 2030 2032 2034 2036 2038 2040 2042 2044 2046 2048 2050 APS Fixed APS Floating PNW Fixed PNW Floating($millions) As of March 31, 2024 11 Debt maturity profile shows well managed and stable financing plan

Appendix

$0.48 Weather 2024 vs 2023 Operating Revenue less Fuel and Purchased Power Net Effect of 2022 GRC $ 1.33 Retail Sales Growth $ 0.26 LFCR/2019 GRC appeal outcome $ 0.11 RES/DSM/PSA (Chemicals) $ 0.08 Other $ 0.02 Transmission $ (0.05) Weather $ (0.48) All other BCE Sale $ 0.10 Pension & OPEB non-service credits, net $ 0.01 Other, net $ (0.04) Miscellaneous & rounding $ (0.04) $1.27 Operating Revenue less Fuel and Purchased Power1 $(0.14) O&M1 $(0.47) D&A $(0.08) Other taxes $(0.32) Interest, net AFUDC $0.03 All other 2023 2024 (midpoint) $4.70 $4.41 1 Includes costs and offsetting operating revenues associated with renewable energy and demand side management programs, see sl ide 22 for more information. 13 2024 EPS Guidance of $4.60 - $4.80

Return on Equity 9.55% Fair Value Increment 0.25% Equity Ratio 51.93% Post Test-Year Plant 12 months + Four Corners ELG New Capital Tracking Mechanism System Reliability Benefit surcharge approved Existing Adjustors • Partial transfer of LFCR funds to base rates • PSA annual cap increase approved Total Base Rate Increase $491.7M Total Net Increase $253.4M Customer Net Impact on Day 1 8% 14 Key Components of Final Decision The 2022 rate case outcome was reasonable and constructive

Progress Pathway 2005 2019 2030 2050 Since 2020, have contracted over 5,000 MW of clean energy and storage to be in service for APS customers by end of 2025 Issued 2023 All-Source RFP for approximately 1,000 MW of reliable capacity, including at least 700 MW of renewable resources Successfully received approval of the System Reliability Benefit Surcharge that will expand our capacity to self-build generation to meet customer need with reduced lag 24% 50% 65% 100% 15 We are making progress towards our Clean Energy Commitment

2.1% 2.3% 2.4% 2.2% 2.1% 1.5%-2.5% 0% 1% 2% 3% 2019 2020 2021 2022 2023 2024E Residential Customer Growth1 APS Residential Growth Natn'l Avg.-Residential 16 • In 2023, Maricopa County was the fourth fastest-growing county in the nation • Phoenix housing is affordable compared to major cities in the region • 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 Arizona economy continues to be robust and attractive 1 National average from 2023 Itron Annual Energy Survey Report. Arizona continues to be an attractive service territory with strong customer growth

Source: Arizona Commerce Authority 17 Arizona’s commercial and industrial growth is diverse

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 2021 Applications 2022 Applications 2023 Applications 2024 Applications 169 200 216 34 2021 2022 2023 2024 1 Monthly data equals applications received minus cancelled applications. As of March 31, 2024, approximately 178,285 residential grid-tied solar photovoltaic (PV) systems have been installed in APS’s service territory, totaling approximately 1,583 MWdc of installed capacity. Excludes APS Solar Partner Program, APS Solar Communities, and Flagstaff Community Partnership Program. Note: www.arizonagoessolar.org logs total residential application volume, including cancellations. Residential DG (MWdc) Annual Additions 18 Residential PV Applications

$15 $9 $16 $15 $17 $18 $21 $20 $12 $16 $0 $5 $10 $15 $20 $25 $30 $35 $40 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Renewable Energy Demand Side Management 2023 $127 Million 2024 $33 Million 1Renewable Energy and Demand Side Management expenses are substantially offset by adjustment mechanisms. Numbers may not foot due to rounding. ($ in millions pretax) 19 Renewable Energy & Demand Side Management expenses1

($1) Q1 Q2 Q3 Q4 Variances vs. Normal All periods recalculated to current 10-year rolling average (2013 – 2022). Numbers may not foot due to rounding. ($ in millions pretax) 2024 Total Weather Impact: $(1) Million 20 2024 gross margin effects of weather

Q2 Plant Unit Estimated Duration in Days West Phoenix CC5 55 Palo Verde 3 36 Q1 Plant Unit Actual Duration in Days Redhawk CC1 66 West Phoenix CC5 71 Q4 Plant Unit Estimated Duration in Days Palo Verde 2 36 Four Corners 5 66 Coal, Nuclear and Large Gas Planned Outages 21 2024 Planned Outage Schedule

2023 Actuals4 2024 Guidance4 Operating revenues1 $4.70 billion $4.92 - $5.02 billion Fuel and purchased power expenses1 $1.79 billion $1.85 - $1.89 billion Gross Margin $2.90 billion $3.06 - $3.13 billion Adjustments: Renewable energy and demand side management programs2 $129 million $125 - $135 million Adjusted gross margin $2.77 billion $2.93 - $3.00 billion Operations and maintenance1,3 $1.06 billion $1.07 - $1.09 billion Adjustments: Renewable energy and demand side management programs2 $127 million $125 - $135 million Adjusted operations and maintenance $932 million $940 - $960 million 22 1Line items from Consolidated Statements of Income. 2Includes $3.3M for CCT (Coal Community Transition) in 2023 and $3.3M in 2024 which is recovered through REAC (Renewable Energy Adjustment Charge). 3O&M per MWh was $35/MWh in 2023. 4Numbers may not foot due to rounding. Non-GAAP Measure Reconciliation

Case/Docket # Q1 Q2 Q3 Q4 2022 Rate Case: E-01345A-22-0144 Rates effective March 8 Procedural conference re: rehearing request April 26 Power Supply Adjustor (PSA) E-01345A-22-0014: 2024 PSA rate (no change from 2023) PSA application to be filed Nov. 27 Transmission Cost Adjustor E-01345A-22-0014: To be filed May 15; effective June 1 Lost Fixed Cost Recovery E-01345A-23-0228: 2023 LFCR effective May 1 2024 LFCR to be filed July 31 2024 LFCR effective date Nov. 1 (if approved) Resource Planning and Procurement: E-99999A-22-0046 Anticipated 2023 IRP acknowledgment 2024 RES Implementation Plan E-01345A-23-0193: 2024 REAC-1 effective (if approved) 2025 Plan to be filed July 1 Resource Comparison Proxy E-01345A-24-XXXX (TBD): Updated RCP filing to be filed May 1 Effective Sep. 1 (if approved) Test Year Rules (Regulatory Lag) AU-00000A-23-0012: Workshop held March 19th 2024 Financing Application E-01345A-24-XXXX (TBD) Equity infusion and Long-term debt application filed April 19 23 2024 Key Regulatory Dates

24 Consolidated Statistics 3 Months Ended March 31, 2024 2023 Incr (Decr) TOTAL OPERATING REVENUES (Dollars in Millions) Retail Residential $ 433 $ 410 23 Business 461 406 55 Total Retail 894 816 78 Sales for Resale (Wholesale) 27 96 (69) Transmission for Others 28 32 (4) Other Miscellaneous Services 3 2 1 Total Operating Revenues $ 952 $ 945 7 ELECTRIC SALES (GWH) Retail Residential 2,767 2,868 (101) Business 3,810 3,453 357 Total Retail 6,576 6,321 256 Sales for Resale (Wholesale) 1,334 1,046 288 Total Electric Sales 7,911 7,367 544 RETAIL SALES (GWH) - WEATHER NORMALIZED Residential 2,762 2,744 18 Business 3,830 3,483 347 Total Retail Sales 6,592 6,227 365 Retail sales (GWH) (% over prior year) 5.9% 3.6% 2.2% 3 Months Ended March 31, 2024 2023 Incr (Decr) AVERAGE ELECTRIC CUSTOMERS Retail Customers Residential 1,246,840 1,222,905 23,935 Business 143,677 142,425 1,252 Total Retail 1,390,517 1,365,330 25,187 Wholesale Customers 58 58 0 Total Customers 1,390,576 1,365,388 25,188 Total Customer Growth (% over prior year) 1.8% 2.0% (0.2)% RETAIL USAGE - WEATHER NORMALIZED (KWh/Average Customer) Residential 2,215 2,244 (29) Business 26,655 24,453 2,202

25 Consolidated Statistics 3 Months Ended March 31, 2024 2023 Incr (Decr) ENERGY SOURCES (GWH) Generation Production Nuclear 2,549 2,507 42 Coal 1,990 2,068 (79) Gas, Oil and Other 1,410 1,785 (375) Renewables 230 93 138 Total Generation Production 6,179 6,453 (273) Purchased Power Conventional 621 568 53 Resales 41 54 (13) Renewables 824 618 206 Total Purchased Power 1,485 1,240 246 Total Energy Sources 7,664 7,692 (28) POWER PLANT PERFORMANCE Capacity Factors - Owned Nuclear 102% 101% 1% Coal 67% 71% (3)% Gas, Oil and Other 18% 23% (5)% Solar 28% 19% 9% System Average 44% 47% (4)% 3 Months Ended March 31, 2024 2023 Incr (Decr) WEATHER INDICATORS - RESIDENTIAL Actual Cooling Degree-Days - - - Heating Degree-Days 476 683 (207) Average Humidity 0% 0% 0% 10-Year Averages (2013 - 2022) Cooling Degree-Days - - - Heating Degree-Days 439 439 Average Humidity 0% 0% -