Pinnacle West Capital Corporation is a holding company that conducts business through its subsidiaries. The company derives essentially all of its revenues and earnings from its wholly-owned subsidiary, Arizona Public Service Company (APS). APS is a vertically-integrated electric utility that provides retail or wholesale electric service to most of Arizona. The company's primary business segment is its regulated electricity segment, which includes traditional regulated retail and wholesale electricity businesses, and related activities, including electricity generation, transmission, and distribution.

• Employees: 6,133 (as of December 31, 2023)
• Geographic Footprint: Primarily Arizona
• Headquarters: Phoenix, Arizona
• Founded: 1985
• Number of locations/facilities: Multiple generating and transmission facilities throughout Arizona
• Revenue: $4.7 billion (FY2023)

• CEO: Jeffrey B. Guldner
• CFO: Andrew D. Cooper
• Board Chair: Jeffrey B. Guldner

Jeffrey B. Guldner has served as CEO since 2019 and Chairman of the Board since 2022. Andrew D. Cooper has served as CFO since 2022.

• Annual Revenue: $4.7 billion (FY2023)
• Net Income: $502 million (FY2023)
• Total Assets: $24.7 billion (as of December 31, 2023)
• Number of employees: 6,133 (as of December 31, 2023)
• Key Financial Highlights: Net income increased by $18 million compared to the prior year, primarily due to the effects of weather, higher CRS and LFCR revenue, higher transmission revenue, increased sales and usage, and higher other income. These positive factors were partially offset by higher interest charges, net of AFUDC, higher operations and maintenance expense, lower pension and other postretirement non-service credits, and higher depreciation and amortization expense mostly due to increased plant assets.

APS provides retail and wholesale electric service. Key services include:

• Electricity Generation: Utilizing nuclear, gas, coal, and renewable resources.
• Electricity Transmission: Maintaining and expanding transmission infrastructure.
• Electricity Distribution: Delivering electricity to approximately 1.4 million customers.

The company operates in one reportable business segment:

• Regulated Electricity: Includes traditional regulated retail and wholesale electricity businesses and related activities, including electricity generation, transmission, and distribution.

Pinnacle West's strategy focuses on creating a sustainable energy future for Arizona, delivering shareholder value, and serving customers with reliable, affordable, and clean energy. Key strategic initiatives include:

• Clean Energy Commitment: Aiming to provide 100% clean, carbon-free electricity by 2050.
• Infrastructure Investments: Hardening infrastructure to improve climate resiliency.
• Technological Advancements: Deploying advanced grid technologies and energy storage solutions.
• Customer Focus: Improving customer experience and maintaining reliability.

Pinnacle West operates in the electric utility industry, which is undergoing a significant transition towards clean energy. Key market trends include:

• Clean Energy Transition: Increasing adoption of renewable energy resources and a move away from fossil fuels.
• Technological Innovation: Advancements in energy storage and grid technologies.
• Regulatory Changes: Evolving environmental regulations and energy policies.
• Competition: Competition from other utilities and alternative energy providers.

• Regulatory Risks: Dependence on the ability to recover costs through regulated rates and potential impacts from regulatory decisions.
• Operational Risks: Risks related to weather extremes, system outages, and performance of generation and transmission facilities.
• Financial Risks: Risks related to credit ratings, interest rates, and the ability to access capital markets.
• Environmental Risks: Risks related to climate change, environmental regulations, and the management of coal combustion waste.
• Cybersecurity Risks: Risks related to cybersecurity threats and intrusions.