Pinnacle West Capital Corp. Files Q3 2024 10-Q

TL;DR

PNW dropped its Q3 10-Q. APS is still running the show. Check financials.

AI Summary

Pinnacle West Capital Corp. (PNW) filed its 10-Q for the period ending September 30, 2024. The filing details the company's financial performance and operational status, with Arizona Public Service Co. (APS) being a key subsidiary. The report covers the third quarter of 2024 and provides updates on the company's business, including its electric services operations.

Why It Matters

This filing provides investors and analysts with crucial financial and operational data for Pinnacle West Capital Corp. and its subsidiary Arizona Public Service Co., impacting investment decisions and market analysis.

Risk Assessment

Risk Level: medium — The filing is a standard quarterly report, but the energy sector can be subject to regulatory and market risks not detailed in this summary.

Key Numbers

• 2024 Q3 — Reporting Period (Covers the third quarter of 2024.)
• 12/31 — Fiscal Year End (Indicates the company's fiscal year concludes on December 31st.)

Key Players & Entities

• PINNACLE WEST CAPITAL CORP (company) — Filer
• ARIZONA PUBLIC SERVICE CO (company) — Subsidiary
• 20240930 (date) — Reporting Period End Date
• 20241106 (date) — Filing Date
• 400 NORTH FIFTH STREET (address) — Business Address

FAQ

Key Financial Figures

• $2.50 — MPANY Number of shares of common stock, $2.50 par value, outstanding as of October 30

Filing Documents

• pnw-20240930.htm (10-Q) — 3057KB
• exhibit311-09302024.htm (EX-31.1) — 11KB
• exhibit312-09302024.htm (EX-31.2) — 11KB
• exhibit313-09302024.htm (EX-31.3) — 11KB
• exhibit314-09302024.htm (EX-31.4) — 10KB
• exhibit321-09302024.htm (EX-32.1) — 9KB
• exhibit322-09302024.htm (EX-32.2) — 9KB
• 0000764622-24-000079.txt ( ) — 15592KB
• pnw-20240930.xsd (EX-101.SCH) — 118KB
• pnw-20240930_cal.xml (EX-101.CAL) — 135KB
• pnw-20240930_def.xml (EX-101.DEF) — 632KB
• pnw-20240930_lab.xml (EX-101.LAB) — 1132KB
• pnw-20240930_pre.xml (EX-101.PRE) — 888KB
• pnw-20240930_htm.xml (XML) — 2632KB

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 12 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 74 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 103 Item 4.

Controls and Procedures

Controls and Procedures 103 Part II 105 Item 1 .

Legal Proceedings

Legal Proceedings 105 Item 1A.

Risk Factors

Risk Factors 105 Item 5. Other Information 105 Item 6. Exhibits 106

Signatures

Signatures 108 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 and Nine Months Ended September 30 , 2024 and 2023 5 Pinnacle West Condensed Consolidated Statements of Comprehensive Income for Three and Nine Months Ended September 30 , 2024 and 2023 6 Pinnacle West Condensed Consolidated Balance Sheets as of September 30 , 2024 and December 31, 2023 7 Pinnacle West Condensed Consolidated Statements of Cash Flows for Nine Months Ended September 30 , 2024 and 2023 9 Pinnacle West Condensed Consolidated Statements of Changes in Equity for Three and Nine Months Ended September 30 , 2024 and 2023 10 APS Condensed Consolidated Statements of Income for Three and Nine Months Ended September 30 , 2024 and 2023 12 APS Condensed Consolidated Statements of Comprehensive Income for Three and Nine Months Ended September 30 , 2024 and 2023 13 APS Condensed Consolidated Balance Sheets as of September 30 , 2024 and December 31, 2023 14 APS Condensed Consolidated Statements of Cash Flows for Nine Months Ended September 30 , 2024 and 2023 16 APS Condensed Consolidated Statements of Changes in Equity for Three and Nine Months Ended September 30 , 2024 and 2023 17 Combined Notes to Condensed Consolidated Financial Statements 19 Note 1. Consolidation and Nature of Operations 19 Note 2. Revenue 20 Note 3. Long-Term Debt and Liquidity Matters 22 Note 4. Regulatory Matters 25 Note 5. Retirement Plans and Other Postretirement Benefits 42 Note 6. Palo Verde Sale Leaseback Variable Interest Entities 43 Note 7. Derivative Accounting 44 Note 8. Commitments and Contingencies 48 Note 9. Other Income and Other Expense 56 Note 10. Earnings Per Share and Equity Forward Sale Agreements 57 Note 11. Fair Value Measurements 58 Note 12. Investment in Nuclear Decommissioning Trusts and Other Special Use Funds 64 Note 13. Changes in