Pinnacle West Capital Corp. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Pinnacle West Capital Corp. has filed its Q1 2024 10-Q report, detailing financial performance and operational data for the period ending March 31, 2024.</b>

AI Summary

PINNACLE WEST CAPITAL CORP (PNW) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Pinnacle West Capital Corp. filed a 10-Q report for the period ending March 31, 2024. The filing includes data for Arizona Public Service Company, a subsidiary. The report covers the fiscal quarter of 2024. Key dates include the filing date of May 2, 2024. The company's principal business address is 400 North Fifth Street, Phoenix, AZ.

Why It Matters

For investors and stakeholders tracking PINNACLE WEST CAPITAL CORP, this filing contains several important signals. This 10-Q filing provides investors and analysts with the latest quarterly financial results and operational updates for Pinnacle West Capital Corp. and its subsidiary, Arizona Public Service Company. The detailed financial information within the report is crucial for understanding the company's current financial health, performance trends, and potential future outlook.

Risk Assessment

Risk Level: medium — PINNACLE WEST CAPITAL CORP shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information and does not inherently signal significant positive or negative developments beyond normal business operations.

Analyst Insight

Review the detailed financial statements and management's discussion and analysis within the 10-Q to assess the company's performance and identify any emerging trends or risks.

Key Numbers

• 2024-03-31 — Period of Report (Conformed period of report)
• 2024-05-02 — Filing Date (Filed as of date)
• 2024-01-01 — Quarter Start Date (Reporting period start date)
• 2023-03-31 — Prior Year Q1 End Date (Prior year comparative period)

Key Players & Entities

• PINNACLE WEST CAPITAL CORP (company) — Filer name
• 0000764622 (company) — Central Index Key for Pinnacle West Capital Corp.
• ARIZONA PUBLIC SERVICE CO (company) — Subsidiary filer name
• 0000007286 (company) — Central Index Key for Arizona Public Service Co.
• 4911 (company) — Standard Industrial Classification for Electric Services
• 4931 (company) — Standard Industrial Classification for Electric & Other Services Combined
• PHOENIX (company) — City for business address
• AZ (company) — State for business address

FAQ

Industry Context

Pinnacle West Capital Corp. operates as an electric utility company, primarily through its subsidiary Arizona Public Service Company, serving customers in Arizona.

Regulatory Implications

The company is subject to regulatory oversight by state and federal agencies governing utility operations and rates.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and EPS trends.
2. Review management's discussion and analysis for insights into operational performance and future outlook.
3. Examine any disclosed risk factors or regulatory updates impacting the business.

Key Dates

• 2024-05-02: 10-Q Filing — Filing of the quarterly report for the period ending March 31, 2024.

Year-Over-Year Comparison

This filing represents the company's first quarterly report for the fiscal year 2024, providing updated financial and operational data compared to previous periods.

Key Financial Figures

• $2.50 — MPANY Number of shares of common stock, $2.50 par value, outstanding as of April 25,

Filing Documents

• pnw-20240331.htm (10-Q) — 2475KB
• exhibit101-summaryof2024in.htm (EX-10.1) — 8KB
• exhibit311-03312024.htm (EX-31.1) — 11KB
• exhibit312-03312024.htm (EX-31.2) — 11KB
• exhibit313-03312024.htm (EX-31.3) — 11KB
• exhibit314-03312024.htm (EX-31.4) — 10KB
• exhibit321-03312024.htm (EX-32.1) — 9KB
• exhibit322-03312024.htm (EX-32.2) — 9KB
• 0000764622-24-000044.txt (&nbsp;) — 13491KB
• pnw-20240331.xsd (EX-101.SCH) — 110KB
• pnw-20240331_cal.xml (EX-101.CAL) — 124KB
• pnw-20240331_def.xml (EX-101.DEF) — 609KB
• pnw-20240331_lab.xml (EX-101.LAB) — 1034KB
• pnw-20240331_pre.xml (EX-101.PRE) — 834KB
• pnw-20240331_htm.xml (XML) — 2116KB

Forward-Looking Statements

Forward-Looking Statements 2 Part I 4 Item 1.

Financial Statements

Financial Statements 4 Pinnacle West Capital Corporation 5 Arizona Public Service Company 11 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 67 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 92 Item 4.

Controls and Procedures

Controls and Procedures 92 Part II 94 Item 1 .

Legal Proceedings

Legal Proceedings 94 Item 1A.

Risk Factors

Risk Factors 94 Item 5. Other Information 94 Item 6. Exhibits 95

Signatures

Signatures 99 This combined quarterly report on Form 10-Q is separately provided by Pinnacle West Capital Corporation ("Pinnacle West") and Arizona Public Service Company ("APS"). Any use of the words "Company," "we," and "our" refer to Pinnacle West. Each registrant is providing on its own behalf all of the information contained in this Form 10-Q that relates to such registrant and, where required, its subsidiaries. Except as stated in the preceding sentence, neither registrant is providing any information that does not relate to such registrant, and therefore makes no representation as to any such information. The information required with respect to each company is set forth within the applicable items. Item 1 of this report includes Condensed Consolidated Financial Statements of Pinnacle West and Condensed Consolidated Financial Statements of APS. Item 1 of this report also includes Combined Notes to Condensed Consolidated Financial Statements. 1 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This document 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. In addition to the Risk Factors described in Part I, Item 1A of the Pinnacle West/APS Annual Report on Form 10-K for the fiscal year ended December 31, 2023 ("2023 Form 10-K"), Part II, Item 1A of this report and in Part I, Item 2 — "Management's Discussion and Analysis of Financial Condition and Results of Operations" of this report, 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 transmi

— FINANCIAL INFORMATION

PART I — FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS INDEX TO FINANCIAL STATEMENTS AND FINANCIAL STATEMENT SCHEDULES Page Pinnacle West Condensed Consolidated Statements of Income for Three Months Ended March 31, 2024 and 2023 5 Pinnacle West Condensed Consolidated Statements of Comprehensive Income for Three Months Ended March 31, 2024 and 2023 6 Pinnacle West Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 7 Pinnacle West Condensed Consolidated Statements of Cash Flows for Three Months Ended March 31, 2024 and 2023 9 Pinnacle West Condensed Consolidated Statements of Changes in Equity for Three Months Ended March 31, 2024 and 2023 10 APS Condensed Consolidated Statements of Income for Three Months Ended March 31, 2024 and 2023 11 APS Condensed Consolidated Statements of Comprehensive Income for Three Months Ended March 31, 2024 and 2023 12 APS Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 13 APS Condensed Consolidated Statements of Cash Flows for Three Months Ended March 31, 2024 and 2023 15 APS Condensed Consolidated Statements of Changes in Equity for Three Months Ended March 31, 2024 and 2023 16 Combined Notes to Condensed Consolidated Financial Statements 17 Note 1. Consolidation and Nature of Operations 17 Note 2. Revenue 19 Note 3. Long-Term Debt and Liquidity Matters 20 Note 4. Regulatory Matters 22 Note 5. Retirement Plans and Other Postretirement Benefits 39 Note 6. Palo Verde Sale Leaseback Variable Interest Entities 40 Note 7. Derivative Accounting 41 Note 8. Commitments and Contingencies 45 Note 9. Other Income and Other Expense 53 Note 10. Earnings Per Share and Equity Forward Sale Agreements 54 Note 11. Fair Value Measurements 55 Note 12. Investment in Nuclear Decommissioning Trusts and Other Special Use Funds 61 Note 13. Changes in Accumulated Other Comprehensive Loss 64 Note 1 4 . Sale of Bright Canyon Energy 65 Note 1 5 . In