APS is committed to a clean energy future and is investing in renewable energy and energy storage. The company is adding new natural gas units at the modernized Ocotillo Power Plant and efficiency improvements to gas units at the Redhawk and Sundance Power Plants are planned in 2024.

APS is exploring regional market solutions as part of the Western Markets Exploratory Group (WMEG) to help achieve carbon reduction goals while supporting reliable, affordable service for customers.

APS is receiving unprecedented requests for service from extra-large commercial energy users (over 25 MW) with very high energy demands that persist virtually around-the-clock. APS has developed a prioritization queue that identifies and prioritizes projects while maintaining system reliability and affordability for existing APS customers.

APS implemented a new Energy Management System (EMS) in April 2024, which is expected to improve the integration of renewable and energy storage assets into APS's generation resource portfolio.

APS continues to improve customer experience through initiatives such as improving the automated phone system, adding in-person payment locations, and enhancing the website.

APS is managing wildfire safety with increased investment in fire mitigation efforts, including clearing defensible space, system upgrades, and partnerships with government entities and first responders.

APS is subject to numerous environmental laws and regulations, including those related to coal combustion waste. Changes in these regulations could materially increase APS's costs.

APS is subject to regulatory lag, which is the time between when costs are incurred and when they are recovered in rates. This can negatively impact APS's financial performance.

APS is exposed to the impact of market fluctuations in the commodity price and transportation costs of electricity and natural gas. Market volatility is managed by utilizing various physical and financial derivative instruments.

APS's residential customer satisfaction ranked in the second quartile among large investor-owned utilities, and its business customer satisfaction ranked in the second quartile of utilities nationally.

APS opposes Green Mountain Energy's application to provide competitive electric generation service in Arizona, indicating a desire to maintain its market position.

APS is exploring available options for securing sufficient electric generation and transmission to meet these projections of future customer needs, indicating a proactive approach to maintaining its competitive position.

APS is implementing automation technologies to enhance efficiencies and increase data-oriented decision making, indicating a focus on improving operational efficiency.

APS is managing through significant growth in the Phoenix metropolitan area while experiencing supply chain issues, indicating a focus on maintaining operational efficiency despite challenges.

Efficiency improvements to gas units at the Redhawk and Sundance Power Plants are planned in 2024, indicating a focus on improving operational efficiency.

APS deploys a number of advanced technologies on its system, including energy storage, indicating a focus on innovation and technology.

APS is developing a cross functional governance structure with leadership and experts from our information technology, cybersecurity, human resources, ethics, supply chain, legal, and nuclear generation teams to address the emergence of artificial intelligence technology risk and opportunities, indicating a focus on innovation and technology.

APS went live with a new Energy Management System (EMS) in April 2024, which is expected to improve the integration of renewable and energy storage assets into APS's generation resource portfolio.

APS is currently authorized to receive up to $150 million annually in equity infusions from Pinnacle West without seeking ACC approval, providing flexibility in capital allocation.

APS submitted a request to the ACC to permanently modify Pinnacle West's permitted yearly equity infusions to equal up to 2.5% of Pinnacle West's consolidated assets each calendar year on a three-year rolling average basis, indicating a potential shift in capital allocation strategy.

APS is prioritizing projects to meet high demand from extra-large commercial energy users, indicating a focus on capital allocation towards projects that will generate the most revenue.

APS has a 2050 goal to provide 100% clean, carbon-free electricity, demonstrating a commitment to environmental sustainability.

APS has a 2030 target to achieve a resource mix that is 65% clean energy, with 45% of the generation portfolio coming from renewable energy, demonstrating a commitment to environmental sustainability.

APS has a commitment to exit from coal-fired generation by 2031, demonstrating a commitment to environmental sustainability.

Overall inflation grew by 2.2% in Phoenix and 3.2% nationally over the twelve months ended February 2024, indicating a challenging market environment.

APS is managing through significant growth in the Phoenix metropolitan area while experiencing supply chain issues, indicating a dynamic market environment.

APS is exploring available options for securing sufficient electric generation and transmission to meet projections of future customer needs, indicating a proactive approach to adapting to the market environment.