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 Dec. 31, 2024.

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

• Retail sales are split 52% residential and 48% non-residential.

Growth outlook and economic environment

• Arizona is experiencing robust economic and population growth, with Phoenix leading in manufacturing and industrial real estate markets.

• Residential customer growth is projected at 2.1–2.4% annually, outpacing the national average.

• Diverse commercial and industrial sectors, including tech, aerospace, bioscience, and semiconductors, drive demand.

Regulatory and operational environment

• 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, reducing regulatory lag.

• Transmission expansion projects are underway to support growth and resiliency, with major lines planned through 2030.