Pinnacle West Capital (PNW) Investor presentation summary

Company profile and service territory

• Operates Arizona's largest electric utility with 1.4 million customers and $26B in assets as of December 31, 2024.

• Owns or leases 6.5 GW of generating capacity, with 54% from clean energy sources.

• Retail sales mix is 52% residential and 48% non-residential.

Growth outlook and economic development

• Arizona is experiencing robust economic and population growth, with Phoenix ranked as a top growth market for manufacturing.

• Large commercial and industrial customers drive 3-5% of the 4-6% long-term weather-normalized sales growth guidance.

• Diverse industry clusters include high tech, aerospace, bioscience, automotive, and data centers.

Regulatory environment and cost recovery

• Regulatory environment has improved, with balanced outcomes and support for cost recovery mechanisms.

• System Reliability Benefit Surcharge (SRB) enables timely recovery for new generation projects, with several expansions underway.

• Transmission expansion projects are planned through 2030 to support growth and resiliency.